When is the Right Time for Profit Booking? – Book Your Profit Now

August 30, 2018

Profit Booking is also known as profit taking. Profit booking is when individuals or companies liquidate their holdings to cash out the profits that they have generated. You must know that for a situation to be called profit booking there has to be a profit involved. When the stocks are liquidated and cashed out to avoid losses, then such a situation cannot be known as profit booking.

Market gets driven by certain factors, which are described in this post. When you notice following Conditions then you must book your profit. Here are some of the common situations that lead to investors cashing out their investments.

At times when company specific positive news hits the market then profit can be booked. You can assume that X Company has won a massive contract or has developed some new technology then in that case, a lot of people will start buying the stock. And thus, this excessive buying will lead to a price rise. As a consequence, the investment targets of a lot of people are met, which lead them to sell out their stock causing a temporary slump in the market induced by profit booking.

 

About nehanchal

I am Nehanchal. 3 years ago, I started my career as content writer at Money classic Research. I am fascinated with this job and I feel habit of reading and writing enhances your skills. I love to write technical and health blogs. However, I am engineer turned writer and pursued graduation at Rajiv Gandhi Prodyogiki Vishwavidhyalaya.
By: nehanchal

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