Sunday, August 19, 2007

Types Of Profit-Taking

The equity fund's performance is , however different compared to bond fund, as it volatile ups and downs are appropriate for certain pool of investors who are able to monitor the fund's performance and be disciplined in buying and selling at the right time. Also, those who wish to take advantage of cost averaging, purchase more units at a lower price while taking a position in redemption during an uptrend price.

Below are few ways how some investors can try approach:
Short-Term Profit-Taking
Buy during the uptrend price movement and sell higher.

Medium-Term Profit-Taking
Buy during the downtrend price movement and sell later.

Long-Term Profit-Taking
Buy during the downtrend as long as the price is below your last investment price or proven to have an affect on lowering your cost average. Hold to be sold later at a higher price.

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