Don’t Forget to Pay Yourself!

Why do people trade securities in the stock market?

To make money, obviously!

Regardless of how you trade, it’s important that you don’t forget to occasionally take some gains off the table.

I’ve said before that money isn’t made or lost in the stock market, it’s only moved…

Whether you’re a long term investor or a swing trader, you haven’t actually made any money until you transfer those gains to your bank account!

So always remember to pay yourself from time to time. It’s why we do what we do!

Recently, I went on a vacation to Mexico with gains I took from the stock market.

And why shouldn’t you be able to as well?

Saving up for a new car? Want to put a down payment on a house? Supplement your retirement income?

All of this, and more, can be done through the stock market. You just have to remember to take some of those hard earned gains.

Bottom line: Don’t forget to pay yourself!

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: What happened to the FANGs?

Greg Guenthner

A little more than a month ago, we were celebrating a big earnings beat courtesy of streaming superstar Netflix Inc. (NASDAQ:NFLX)

My best guess was that Netflix’s double-digit earnings rally would help bolster shares of other names in the FANG+ group – especially since many of these popular mega-caps had lagged their tech brethren for months.

But Netflix shares were unable to maintain their post-earnings bounce. As of Monday afternoon, NFLX stock rested more than 9% off its Jan. 21 highs. No, the stock hasn’t completely fallen apart. But shares have rallied just about 8% over the past six months, compared to a 20% rally in the Nasdaq Composite.

Other FANG+ names aren’t faring much better. Apple Inc. (NASDAQ:AAPL) has dropped more than 10% from its own January highs. Microsoft Corp. (NASDAQ:MSFT) abruptly slipped almost 5% approaching these final trading days of the month. Even Tesla Inc. (NASDAQ:TSLA) has failed to maintain its January momentum. The stock broke below its 50-day moving averages on Monday for the first time since November.

TSLA

As of Monday afternoon, Tesla shares are now more than 17% off their highs (the stock closed at a high of $895 on Jan. 26 – just four weeks ago).

Judging by the price action we’re seeing in these big tech stocks, they’re going to need to put up or shut up soon.

— Greg Guenthner

You May Also Be Interested In:

Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

View More By Alan Knuckman