Should I book profit on my stocks when they are in profit or still keep them ?

POSTED BY Javed Khan ON January 2, 2014 10:49 am COMMENTS (5)

Happy New Year Guys,

I have been deligently puting 20K in SIP from last 4 years and would continue for may be 20 more years.

I also invest money in equity whenever I feel the stock is a little low usually with a long term perspective.Have some 2000 shares of Tata Steel at an average of 201 Rs which is now trading at 420+. There are some other stocks as well. My question is does it make sense to make some profit and invest the amount somewhere else or just keep these shares for long term 15-20 years.

Regards,

Javed

5 replies on this article “Should I book profit on my stocks when they are in profit or still keep them ?”

  1. rahul123 says:

    Every company will go through the good and bad phase.

    Think about lehman brothers – This was one of the very good performing investment bank. If you would had hold the shares for long term (10-15 years) now you would have lost all your money. Hence i believe regular profit booking is good practice.

    Thanks,
    Rahul

  2. Sumit says:

    I am a believer of period profit booking, both in mutual funds and stocks. In the market scenario for last 4 years, you should be benefited with these approach. But be cautious, and ready to change this style if market trend changes in coming years.

    But do not carried away too much, keep a small maximum fixed percentage in mind, that you want to sell while your stock/Mf is up, and buy on later time in dips.
    Thanks

  3. ashalanshu says:

    Dear Javed, OK. For your given situation some ‘ll say book profit and invest elsewhere. If I’m in your place, I w’d not touch the amount and let the investment as it is.

    Thanks

    Ashal

  4. Javed Khan says:

    Thanks for the reply Ashal,
    With no debt as of now all the money I save goes to SIP or direct equity considering not to touch this money for 15+years. My point was If i am investing for long duration should I be tempted to sell some of the shares as they are almost doubled in 2 years timeframe or I should stay invested.

    Regards,
    Javed

  5. ashalanshu says:

    Dear Javed, the investment should be made to reach a target, a goal. If there is no target, goal, how w’d you decide your exit point?

    Thanks

    Ashal

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