I am using zerodha past 7 to 8 months, but till now i don’t have a clear idea in profit booking,
suppose, if i have 1000 stocks of a specific company which i bought for 80 Rs and current mark price is 100, how to book profit,
kindly share your ideas below,
i have few of my own thoughts, ill open a poll, kindly vote one or comment me if your opinion is different and kindly explain that why u think so.
- Sell all stocks and book complete profit.
- Sell half and keep half stocks and wait for more price gain.
- Don’t sell any stock and wait for more price gain.
- Sell 70% stock and keep 30% stock.
- Sell 30% stock and keep 70% stock.
This might not be the answer you expect, but it really depends on the stock and the trade that you take. Even before you take the trade, you will be the one to decide the target.
If you feel the target for that particular stock was 100 then it is achieved, book complete profit.
If you think 100 is a decent target, but you probably think it might go upto say 120 for any reason , then keep some shares left.
But if you think you have found a multibagger for the long term and think it might go to say 400-500 over time, then there is no point in you booking any at 100…
So, the target or you expectation from the trade , should make you decide how much profit you book if any.
Now, you might know all of this and more already. But just thought of putting this out there.
It all depends on your evaluation of stocks. If you think that maximum level of stock price is reached that just sell stocks and book profits of $20 per share. If you think that price could go higher and you are targeting that price, than leave sales for later
It really depends on the current trend strength
Extremely bullish , I would hold or book part profit
If it’s a wave 5 , retesting old highs , I Would be really tight with trail SL
If it’s sideways , exit completely
Down trend , exit completely
If you don’t know where to exit , first learn that and then you will make profits