It's a term you hear all the time when a stock falls for no apparent reason, or when a stock falls after what many consider to be good news. It seems strait forward enough. Investors bought lower and are now selling and taking their profits. Good for them; Isn't that what you are supposed to do? According to Will Rogers; "Don't gamble with your money, just buy some good stocks and when they go up, sell them" Take Profit!!! If we are holding a stock that has started to go down because of profit taking, should we be concerned? Should we be taking profits at this time? Who is taking profits? Is this the so called smart money that feeds off the retail investor? What do these guys know that we don't? There seem to be enough of them to drive the price down. It's not just Joe Retailer putting some money in the bank At what point does a decline stop being profit taking and start being stop losses being exercised? Or turn into one of those stocks you call long term investments. Is "Profit taking" just investment speak for "the price is falling and I don't have a clue why, but because I'm supposed to know I need a term that is very vague and makes sense to the masses" or is it more like "Hold" and means "don't sell yet we want to buy your stock later at a lower price"?