Taking profits is one of the best way to keep your wallet protected. Its always better to keep on booking profit when your are in profit zone.
Otherwise, you will be in great trouble that why you didnot booked profit. Today I realized about the importance of profit booking. A week ago my portfolio wealth was near to $1400 and I did not sell my holdings.
But now my portfolio wealth is only $944 which is around $450 loss in just weeks. This is why I didnot booked profit at that time.
The question may come in mind what is the thing which stops you for booking profits. What I understand is the Greed. Greed is the only thing which takes the investors towards the distruction.
Greed force you to think like that the market will go upside and it will give you great profits. Considering the large profits you get trapped.
Another reason is the wrong thinking that came to the mind. That this might be the last bull run and there is a chance that your portfolio might reach 5X profit. Let it not be that I miss this chance and remain deprived of great benefits
These are the main reasons that you did not book profit and later you regret. Therefore, its better to keep on booking profits in every market situation.
THANK YOU!
