Only the price has gone up
Profit alone is not a full exit rule.
Check whether the business value, risk and original goal changed. A round percentage gain is not a thesis.
Portfolio decision · 5 min read
When should I book profit or exit?
A higher price is information, not a complete reason by itself.
The simple answer
Review the original reason, the business facts and the portfolio weight. Avoid acting only because a price moved.
Which situation sounds like you?
It is now too large in my portfolio
Concentration is a valid review trigger.
A strong performer can quietly become too much of your wealth. Rebalancing brings risk back to your written limit.
The business story broke
Facts matter more than the purchase price.
Falling cash flow, rising debt or a broken governance assumption deserves a fresh review without waiting to get back to your buying price.
A small example
Example: Write three reasons before entering. Review when one breaks, when valuation becomes extreme, or when the position crosses your cap.
Four things to check before deciding
- Original thesis is written
- Latest business facts checked
- Tax and exit load understood
- Portfolio allocation cap reviewed
Hinglish mein
Profit kab book karein ya exit kab sochain?
Price ka upar jaana information hai, complete reason nahi.
Original reason, business facts aur portfolio weight review karein. Sirf price move hone par action mat lein.
- Sirf price upar gaya: Check karein business value, risk ya original goal change hua ya nahi. Round percentage gain thesis nahi hota.
- Portfolio mein bahut bada ho gaya: Strong performer quietly aapki wealth ka bahut bada part ban sakta hai. Rebalancing risk ko written limit par laata hai.
- Business story break hui: Falling cash flow, rising debt ya governance problem ko fresh review chahiye. Buying price par wapas aane ka wait zaroori nahi.
Example: Entry se pehle 3 reasons likhein. Reason break ho, valuation extreme ho ya position cap cross kare toh review karein.
Work out your own numbers
This is education, not tax, insurance or investment advice. Use current official rules and a registered professional when needed.