--- title: "Some further thoughts on \"long-term holding, stop-loss and take-profit\"" type: "Topics" locale: "zh-CN" url: "https://longbridge.com/zh-CN/topics/37991073.md" description: "I used to have a question: If you are optimistic about the long-term value of a company, why must you take profits? If the company's fundamentals haven't changed, why should you cut losses when the stock price falls? Later, I realized that this question itself cannot be answered with a one-size-fits-all approach—the answer depends on "why it fell, what you hold, and your portfolio structure." 1. If the fundamentals haven't changed, cutting losses isn't always necessary. If a stock is falling but the company's fundamentals remain unchanged, I now disagree with mechanical stop-loss strategies. A 10%–20% pullback is actually quite common for high-quality stocks due to market sentiment, valuation contraction, short-term negative news..." datetime: "2026-01-21T15:49:35.000Z" locales: - [en](https://longbridge.com/en/topics/37991073.md) - [zh-CN](https://longbridge.com/zh-CN/topics/37991073.md) - [zh-HK](https://longbridge.com/zh-HK/topics/37991073.md) author: "[时间做多](https://longbridge.com/zh-CN/profiles/21870047.md)" --- > 支持的语言: [English](https://longbridge.com/en/topics/37991073.md) | [繁體中文](https://longbridge.com/zh-HK/topics/37991073.md) # Some further thoughts on "long-term holding, stop-loss and take-profit" I used to have a question too: **If you are bullish on a company's long-term value, why must you take profits?** **If the company's fundamentals haven't changed, why should you cut losses when the stock price falls?** Later I realized that this question itself cannot be answered with a one-size-fits-all approach—the answer depends on "why it fell, what you're holding, and your portfolio structure." ### 1\. If fundamentals haven't changed, cutting losses isn't always necessary If a stock is falling but **the company's fundamentals haven't materially changed**, I now disagree with mechanical stop-loss strategies. - A 10%–20% pullback is actually quite common for quality stocks - Market sentiment, valuation contraction, and short-term negative news can all cause declines - Within your **risk tolerance**, you might even consider averaging down in batches The key isn't "how much it fell" but rather: 👉 **Do you still understand this company and remain confident in its long-term thesis?** Stop-losses should be based more on **broken investment theses rather than price volatility itself**. ### 2\. When should you genuinely consider cutting losses? I now recognize three valid triggers for stop-losses: 1️⃣ **Deteriorating company fundamentals** - Weakened economic moat - Declining core business - Structural issues in management or financials 2️⃣ **Cyclical industries entering clear downturns** - Even if the company itself is sound - When industry supply-demand reverses and profit cycles decline - Holding stubbornly often means losing both time and opportunity costs 3️⃣ **Your position size can't withstand further declines** - Psychological breaking point reached - Every drop affects your overall judgment At this stage, clinging to "long-term conviction" becomes the real risk. ### 3\. Taking profits doesn't mean losing conviction—it means better opportunities emerged Many interpret profit-taking as "no longer believing in the company," but I now prefer taking profits in these situations: - **Superior investment opportunities appear** (higher certainty or better risk-reward) - **Valuations have priced in years of future growth** - **Your portfolio structure requires rebalancing** Especially the last point: 👉 **When portfolio structure changes, profit-taking and stop-losses become necessities—not emotional choices.** ### 4\. Long-term holding ≠ never selling a single share What I've come to understand clearly: **Long-term investing doesn't mean being passive.** - "Long-term" refers to sustained conviction in the thesis - But position sizing, timing, and risk management require dynamic adjustments Truly mature long-term investors don't "hold blindly" but rather **withstand volatility when the thesis holds and correct decisively when it breaks**. **In summary:** - Don't panic over declines with intact fundamentals - Respect declines caused by deteriorating fundamentals - Profit-taking isn't rejecting a company—it's respecting opportunity costs - Portfolio structure determines whether you qualify for long-term holding These are personal 实战 reflections, not investment advice. Rational discussion welcome. $AMD(AMD.US) $NVIDIA(NVDA.US) $Amazon(AMZN.US) ### 相关股票 - [AMD (AMD.US)](https://longbridge.com/zh-CN/quote/AMD.US.md) - [NVIDIA (NVDA.US)](https://longbridge.com/zh-CN/quote/NVDA.US.md) - [Amazon (AMZN.US)](https://longbridge.com/zh-CN/quote/AMZN.US.md) - [GraniteShares 2x Long AMD Daily ETF (AMDL.US)](https://longbridge.com/zh-CN/quote/AMDL.US.md) - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/zh-CN/quote/NVDL.US.md) - [XL2CSOPNVDA (07788.HK)](https://longbridge.com/zh-CN/quote/07788.HK.md) - [XI2CSOPNVDA (07388.HK)](https://longbridge.com/zh-CN/quote/07388.HK.md) - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/zh-CN/quote/NVDY.US.md) - [Direxion Daily NVDA Bear 1X ETF (NVDD.US)](https://longbridge.com/zh-CN/quote/NVDD.US.md) - [T-Rex 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/zh-CN/quote/NVDX.US.md) - [T-Rex 2X Inverse NVIDIA Daily Target ETF (NVDQ.US)](https://longbridge.com/zh-CN/quote/NVDQ.US.md) - [Direxion Daily AMZN Bull 2X Shares (AMZU.US)](https://longbridge.com/zh-CN/quote/AMZU.US.md) ## 评论 (1) - **桥上漫步看回撤 · 2026-01-21T23:24:07.000Z**: That makes sense