Booking Profits In Stock Market

You re quite convinced that stock market is over valued and headed for big crash like in 2008 or even march 2020.

Booking profits in stock market. One of the key and prime reason to book profits at regular interval is that stock markets are more volatile compared to the past. In the first part we discussed 5 important points and in this 2nd part we will discuss balance 6 methods to book profit in the stock market. 11 methods to book profit in the stock market is a 2 part series in which we are discussing profit booking strategy.

If this conviction is urging you to book profits on all or most of your equity holdings to sit on cash think twice before acting. So profit booking benefits investors who book profits and sometimes hurt those who hold onto their profits and do not sell. Profit booking essentially means to realize the profits from the shares that have been previously purchased during trading.

Profit booking also known as profit taking is when individuals or companies liquidate their holdings to cash out the profits that they have created. However this profit booking in the stock market led to a short term slump in the market. Imagine the impact of a small economy like greece on worldwide markets.

It must be understood that for a situation to be called profit booking there has to be a profit involved. Our research team provides you with the expertise to predetermine the profit target levels so that we remain focused all throughout the journey irrespective of the stock market unpredictability. Why it is imp to book profits in stock market.

What actually is profit booking in share market and its importance. Many people who buy the shares do not understand the importance of selling the shares or exiting from the market at the right time.