StockMarket: The Profit Dilemma: Play It Safe or Aim Big?
In my stock journey, I guess "buying" is one of the easiest decisions that I have made, but real questions arise when to sell or actually whether we should be selling at all, or whether we should continue to hold it for a long time so that it can give more profit. To be honest, my mind is bifurcated currently. I am always prioritizing to take profits, especially If it is giving me more than 3% profit within a month , then book your profit, that help in 2 ways that you now already have "actual" profit and you also got back your capital back to explore new opportunities in the market.
But on the same note, it start the chase again, you book the profits, and now start searching in the market for other opportunities. You get to new trade and as nobody can predict where the market will be moving tomorrow, so again it is an uncertain territory and again a new risk. And of course , if you say "Time is money", then really lot of time money currency is get used for researching and making some informed decision.
My Regret.
I will not say it is actual regret, or I can say it might be missed opportunity on looking the charts today. When I took the decision, I guess it look good to me.
I will not share this stock name, but let me share the number and decision I took. If you see the horizontal line of 11 Apr 2025, I had made a buying decision on this stock at INR 90. At INR 95, that it reached within a week , I took the exit. I guess after all the fees, it is still around 5% gain for me and I was very happy at my decision at that time. But if I had not sold in April, and hold it, it become much better because it would have 30% profit in just 2 months.
Again in the same spot
Anyways, what is done with the earlier trade is already done. But look at the below chart , I guess I landed myself again in the same spot. As I am already around 5% gain again , should I take profit or wait for 2 months and wait for 30% gain?
I have purchased this stock on last week of May around INR 1580. Since it dividend record date was 30 May, I am eligible to get INR 30. So my current gains in this stock now INR 78 and it is again close to 5% within a month.
But if I take a deep look, this chart still look similar to the first one, and actually I have a strong feeling that it can definitely make 30% on investment in 2 months. Now the question arises, that should I go for 5% today and wait for 30% in 2 months time ?
My 2 cent.
Overall, I can say, no one predict the market in next 2 month time frame but I will hold this time. One of the reason,this particular stock is on an industry leader so all positive news will pump it. My purchase price is also 30% less from it's peak price, so even not in 2 month period, but over a period of time I might definitely get that 30%.
Hoping for all the best and thinking that day will never come when I will be regretting why I waited for 30% instead of taking 5%.