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How success can ruin portfolios

Investors sitting on substantial gains should consider taking some profit, or at least taking a break, to allow the emotional tide spurred by solid wins to recede.

Michael McCarthyContributor

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Managing financial market traders is challenging. The very qualities that make them good traders, such as independent thinking and high self-confidence, can make them hard to direct.

Issuing orders to them can, therefore, be counter-productive, and many managers use a light touch. But there are two moments when traders are most in economic danger and require close supervision.

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    Original URL: https://www.afr.com/wealth/investing/how-success-can-ruin-portfolios-20200601-p54yc9