Inandlong, most definitely. Taking profits should be in graduated steps. I believe that the first partial profits should be taken at the point in which you can cover the costs of your trade and a small profit, PLUS at the same time, move your stop loss to the entry price. The stop becomes tight, but this gives me two advantages:
1) If the move was false and reverses, I get stopped out and at least break even, including costs.
2) I only catch the big moves. Whipsawing action becomes filtered out, thus nerves are saved from wear and tear.
I look at it this way. Who is to say a "correction" is not actually a reversal? How long did the stock analysts say that the stock market was merely in a correction, when in acutality a bear market had started? If you take your profits at the end of an up move (or down move) during a correction, you can always re-enter once you are sure that the trend is continuing. J.D. Rockefeller once was asked how he made his millions in the stock market, and he answered that he was happy to take his share out of the middle, i.e. he never tried to pick tops and bottoms. In other words, I should be happy that I took part in a move, period. Shoulda, woulda, coulda is always in hindsight. More often than not, being overly-cautious will save you from devastating losses.
