Profit Taking
The action of selling stock to cash in on a sharp rise. This action pushes prices down temporarily. When traders are profit taking, the implication is that there is an upward trend in the security. Investopedia Says:
For example, in the media you might hear something like this: "Markets were down today as traders took some profits off the table." It's common for prices to retract to some extent even in bull markets. Related Terms:
Buy Weakness
Day Trader
Flat On Failure
Security
Trend
Trend Analysis |