The art of Booking Profit

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As the title of the post suggest every one of us who invests should know when to book profit and which is nothing less than an art. My goal changes when it comes to Crypto or when it comes to the Stocks market.

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PC: Pixabay.com

Crypto - As of now Crypto is a safe investment to some extent but still, there is a possibility that you will lose 100% of your money. So invest what you can able to lose. So to do that, what I usually do is to invest from my fiat and then once I get profit, I keep the profit and sell to get my initial investment. Now the profit can become 100X or even become 0, it doesn't matter to me anymore because I can afford to lose that.

This is the problem newbie usually face in crypto, they invest but never sell when they get profit to get their initial investment back and in turns, they lose their initial investment too. And because of so many stories people still not convinced enough to invest in crypto.

Stocks - Invest in good company and book profit regularly and do not wait for the long term. I usually hear people say that I invested in stocks for the long term but they usually do not know how long, so it's better to book profit every year or whenever that stock touches ATH. We can get back and invest in that share again when the correction happens in the market. In this way, you are not tied to stock for long and still gets the profit at regular intervals.

But for both the Crypto and Stocks it's better to have Stop loss and keep updating that whenever the price of a coin or stock rises so that you will not lose much. The similar thing has happened with me in case of XRP. I got in the stock when it was 3500 SAT thinking that after Bitcoin XRP will be next but with SEC and other issues XRP fell to 700 SAT but I had my Stop loss at 2500 which saved quite a lot of money. And now I can reenter at when XRP goes above 1000 SAT.

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PC: Pixabay.com

Greed and Fear are the other factors which play an important role but as an investor or trader, we should be both greedy and fearful. Greedy to get more profit and fearful to safeguard much of the profit and investment. When we know this formula along with the art of booking profit then we can make a lot of money.

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