I have left so much on the table in the last 12 months by taking profits. It has gotten really frustrating. I had SQ at just under $10 and sold it in the mid $12's for a nice 25% profit, right? Just a few months later, it's trading over $22.
I had NVDA calls that I sold for just under double - taking a nice profit. Two days later I could have sold them for almost three times as much.
Like I said earlier, I almost sold my AMZN over $700 for what would have been a nice profit. But someone talked me out of it and I'm sure glad they did. Trading is hard. Yes, profits are always a good thing and timing the market is a losing proposition.
But I think you also have to have a strategy for each position - and stick with it. If your strategy is always to take profits at a certain level, then fine. But if you're in the position because you think the company is valuable and there's no reason to sell other than to take a profit, maybe it bears staying in it. If you see other sell indicators, that's a different story.
I liked Square's business and I bought the stock because I think that the technology is enabling small retailers and service providers in a remarkable way. This concept was accurate and the company's earnings are showing it. There was no real reason for me to sell other than to take a profit - but then what? Find another name and look for another small profit? SQ was the right call to start with, so why not just stay in it? Lesson learned.
If anything, AMZN continues to look like the cream of the crop in a transitioning economy. Apart from broader market moves, there's nothing in AMZN's structure or performance to justify selling. It's likely to continue to show alpha.
This is part of the refining of discipline that it takes to be a securities investor. It's a life-long pursuit with many mistakes along the way.