Australian (ASX) Stock Market Forum

Letting profits run versus selling at target price

Whats a hurdle rate?
It's the minimum acceptable rate of return required before one would decide to commit to an investment / project vs doing something else (ie. staying in cash).

You run a business and talk frequently about "risk adjusted returns" - I'm fairly sure you have your own hurdle rate, but perhaps didn't realise that that is what it is called.
 
It's the minimum acceptable rate of return required before one would decide to commit to an investment / project vs doing something else (ie. staying in cash).

You run a business and talk frequently about "risk adjusted returns" - I'm fairly sure you have your own hurdle rate, but perhaps didn't realise that that is what it is called.

You spoiled a run of fun. I am sure all here knew what it was or looked it up.
 
Here is a simple concept, you will know when the target price has been reached because it will show you.
https://www.aussiestockforums.com/forums/showthread.php?t=16501&p=766395&viewfull=1#post766395

Had the profits continued to run then obviously I wouldn't have sold.

Target price recognition, trend reversal, profit taking and re-entry all in a colour piccy.
Reputation (trader), brokerage fees, investor mentality and CGT, all factors that need to be considered :D
 

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It's the minimum acceptable rate of return required before one would decide to commit to an investment / project vs doing something else (ie. staying in cash).

You run a business and talk frequently about "risk adjusted returns" - I'm fairly sure you have your own hurdle rate, but perhaps didn't realise that that is what it is called.

Thanks "V"
Your spot on never heard of it.
 
I've known people with business acumen to understand concepts without ever having encountered the labels ("positive expectancy" is one such label that springs to mind).
At the same time I've witnessed people chanting labels, whom, upon interrogation have demonstrated an absence of understanding of the underlying concept (yet again "positive expectancy" springs to mind).
 
I've known people with business acumen to understand concepts without ever having encountered the labels ("positive expectancy" is one such label that springs to mind).
At the same time I've witnessed people chanting labels, whom, upon interrogation have demonstrated an absence of understanding of the underlying concept (yet again "positive expectancy" springs to mind).

You've picked a classic there Cynic.
Agree completely.
Hypothetical v Actual
 
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