Importance of Profit Booking in Stock Market

🔷️There is a difference between short & Long Term Investment Strategy and Long Term Investment.

🔷️It is very imp to Book Profits at regular intervals keeping the long term investment strategy intact.

🔷️When we invest in the stock market it is very critical that we should be aware of all the factors which impact the movement of stock market.

🔷️Besides this, we should be aware of factors which impact our stock holding. If we book profits at regular intervals then we can increase our returns manifold.

🔷️Moreover, most of the stock investors told me that on the net basis they lost in the stock market instead of making any gains. The key reason is a failure to book profits on time. OR one should keep Trailing profits for more Gains.

Concluding Remarks:

🔷️Markets can move up or move down, but smart investors make money during both bull and bear market.

🔷️Stock Market movement does not impact their long-term investment strategy. You should always identify opportunities available in the market. It is not possible to time the market 100%, but you should set both target and stop loss for a stock to survive in the market.

🔷️The exit strategy is an very important aspect of investing, but easier said than done. When should you sell? When valuations are high, or when price has run up too much too soon, or should you hold till its time to feed financial goals?

🔷️There may not be one, or even a right answer, to the questions above. Nevertheless, you need to put in some thought to profit booking and a systematic approach may well turn out to be the most productive.


DISC – All views expressed are personal and for study & Educational purpose only. Consult your financial advisor before investing.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s