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Writer's pictureJustin Maxwell

Inside $ Maxwells Mind: Markets Hit Highs—Should You Be Taking Profits? Weekly Recap


10/20/24


As markets approach new highs, it’s a perfect moment to remind ourselves: trading is not just about growing numbers on a screen—it's about turning those profits into real value. Whether it’s paying bills, building wealth, or treating yourself to something special, taking profits matters.


For a long time, I was too focused on making more to ever take anything out. I thought keeping every dollar in the market was the way to win. But that mindset kept me from experiencing the rewards I was working so hard for.


Let me share a story that really drove this home for me. It was four years ago, right when Airbnb went public. I had a great run with some trades on Airbnb, and I found myself with a sizable profit. But instead of just letting it sit there in my trading account like I usually did, I decided to do something different. I took a chunk of those profits and booked a week-long trip to St. Thomas, USVI.


Now, I’d been trading for a long time, but I was always in this habit of reinvesting, always chasing the next gain. Taking money out felt like I was breaking some unspoken rule of trading. But that trip to St. Thomas was a turning point for me—it wasn’t just about a vacation, it was about making trading real. I used those profits to pay for an Airbnb, a rental car, plane tickets, and all the little experiences that made that week unforgettable.



For the first time, I saw the true value of what I was doing. Trading wasn’t just a video game with numbers going up and down. It was a tool—a way to create experiences and improve my life in a tangible way. That’s the lesson I want to share: taking profits, even just a small amount, can change the way you view trading.


If you have a small account, maybe this means buying yourself a nice coffee with your gains once in a while. If your account is bigger, maybe it’s treating yourself to a trip like I did. The point is, the habit of taking profits, no matter the size, can make a huge difference in your mindset. It reminds you that trading is a tool for enhancing your life, not just accumulating numbers.


If you’ve had a good 2024, I urge you to take some money out of your trading account and do something worthwhile. Bonus points if you use those profits to purchase another appreciating asset—build freedom with each step you take.


Eguide for Inner Circle Members


For those looking to take their trading to the next level, Mr. Money Maxwell Inner Circle members are getting exclusive access to the Passive Trading with MrMoneyMaxwell.com - Grow Your Portfolio with Stocks Under $100 edguide. This guide is designed to help you grow your portfolio with high-potential, affordable stocks. If you're not already a member, now is a great time to subscribe and get access to this valuable resource.




Weekly Market Recap


Now, let’s dive into this week’s market action.


With the U.S. presidential election less than three weeks away, I expected more market jitters, but instead, SPY closed at a new all-time high this week! Seems like a wave 5 to me




QQQ: Tech is pushing towards new highs as well. Will previous resistance continue, or can tech breakthrough 500?




IWM: As we anticipated, IWM is showing bullish action after the first rate cut. Hope all you good kids are in with me on this one.



GLD: new all time highs!


GLD, TLT, and VIX: Gold is hitting new highs, signaling a search for safety. It’s interesting to see both stocks rising nearly every day and VIX staying elevated—definitely a sign of mixed emotions in the market.

VIX elevated despite market strength. Although a little pullback this week.


The Greed and Fear Index keeps toggling between greed and extreme greed.

It’s natural to feel some FOMO if you're not long right now, and I hate to say it, but you kind of are. However, as smart traders we aren't adding a ton of risk until this turns back to fear.



TLT's pullback to the mean suggests the market is unsure about next month’s rate cut. Meanwhile, gold’s strength hints that investors are preparing for turbulence. If we make it through the election without much of a pullback, the market could continue climbing through year-end. It’s important to keep some bullish trades on—bulls love climbing a wall of worry.


For my Mr. Money Maxwell Inner Circle members, I’m sharing specific trade ideas to navigate this environment. If you aren’t a member, you might want to consider joining. And remember, I’m also posting almost all of my trades in GKT’s Discord, so come follow along there.


As this bull market continues, I’m also staying mindful of the "wall of worry." I’m not outright hedging but I am taking profits on some trades and putting the cash in SGOV to lock in "risk-free" yields while they last. You don’t want to go completely risk-off—bull markets can keep running longer than it seems they should. Let’s stay on the lookout for opportunities, especially with earnings season heating up next week.




This week was a great one for trading gap downs in earnings—classic bull market behavior. Buyers are stepping in at every dip. Let’s see what next week has in store!




That's all for this week. I'll see you right here next week. Much sooner in discord!


Happy Trading, Good Kids!

-$Maxwell

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