Hello Sreekanth.. I am a regular visitor of your relakhs,com and definitely you are doing a great job by guiding many of us like me with right investment ideas.
Sreekanth.. I have a query regarding share trading.. Which one will you suggest..? whether to stay invested in shares for a longer period or to take out the profit @15% and reinvest again in shares.. ? I will be monitoring my profile continuously. For example I have invested 1 laksh in reliance shares and now my portfolio is with 15% profit. What should I do.. whether I need to wait or I have to take out that 15% and reinvest in other shares.. ?(15% on 15% is STCG, which am aware of it too). Which is better.. ?
Could you please suggest me on this.
3 Answers
Hi,
May I know your investment objective? Are you a short term trader (or) would like to invest in shares for long-term linked to any financial goal(s)?
When I do shot-term trading, there can be re-investment risk. You may find it tough to pick good stocks at right prices (may be due to different factors, ex- markets at higher levels)..
Kindly read :
https://www.relakhs.com/long-term-investment-horizon-importance-examples/
https://www.relakhs.com/10-reasons-avoid-short-term-trading-stock-markets/
Thanks sreekanth for your answer. I need to put my question in a different way. Actually, I want to invest for long term to build corpus. In case I have invested in a share and hold the share for 10 years. and after 10 years if I the share price is remains with 15% profit means, what is the meaning of holding it for long time. Instead, if I sell the share when ever its price increases, and again purchase it when the price drops (without taking out the profit).having a target of always of 20% return in 12 months period. In current Bull and Bear market conditions whether this will work out.? Actually I want to do this for a portion of available investable money only. With such shares, how the long term holding will help unless they declared bonus shares. ?
Hi,
It is not that easy to make money by doing short-term trading. Wealth can be created by investing for long-term and being patient.
However, if you would like to follow the suggested strategy with a minor portion of your investible surplus then it is your choice, but kindly do understand the risks associated with short term trading.
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