InvestorQ : Is it good to hang on to stocks when we are making profits?
Nisha Chandani made post

Is it good to hang on to stocks when we are making profits?

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Nisha Chandani answered.
3 years ago
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At the outset, this may sound a tad ironic but this is the biggest single challenge that investors will face. When you are wrong, you either average or stop out. But when you are right, you need to decide whether you should book out, hedge or hold on. This becomes critical because you don’t make profits every day. Therefore, when you are right, you should be able to extract the maximum value from the trade. The big question is how you do it because if you were to exit a multi bagger very early then it will be a big waste of the potential of the stock and you potential to earn returns.

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