what profit margin should I take profits on a stock?

That’s a very natural way to ask it!

Heres a clear, practical answer you can follow:


📈 Typical Profit Margins for Selling a Stock

Trading/Investing Style

Suggested Profit Target

Notes

Day Trading (minutes–hours)

2–5%

Focus on small, quick gains; tight stop-losses.

Swing Trading (days–weeks)

10–20%

Take profits when price nears resistance levels.

Position Trading (weeks–months)

20–30%

Combine chart signals and fundamentals.

Long-Term Investing (months–years)

50%+

Often hold until fundamentals change or stock is overvalued.


🔑 Key Rules

  • Always set a target profit and stop-loss before buying.
  • 🔄 Consider trailing stops (e.g., sell if price drops 10% from its peak).
  • 📊 Long-term investors often focus on company growth and valuation rather than a strict percentage.

Would you like me to make a simple formula (so you can quickly calculate your selling price based on your profit margin)?

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