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11 Techniques to Book Profit in the Stock Market are very crucial to remain profitable in the stock market. I receive a lot of queries that i was in a profit but closed the trade in a loss i.e. i was not able to book profit at the right time and at the right level. This is 2 part series, wherein I have shared my practical experience i.e. Techniques to Book Profit in the Stock Market.

In the 1st part of this series, we have discussed the following 5 methods of profit booking and rest 6 will be discussed in the next part.

1. Favorable or Positive Events/News: Any such event increase the supply of stocks in the market as big players prefer to book profit. Therefore, if there is positive or favorable news in a stock/index, sector or macroeconomic data then you should book the profit.

2. Portfolio Re-balancing or Partial Profit Booking: You can assign a fixed % to a particular stock and in case of profit i.e. the weight of that particular stock increase in the portfolio, you can book a profit thus portfolio re-balancing is important.

3. Assign target based on the risk-reward ratio. You can find out the target or risk-reward ratio based on the support & resistance, Fibonacci Retracement or option chain analysis. For intraday trading, you should also consider the volatility and its impact on the stock movement.

4. Opportunity cost: You can churn your portfolio in favor of the stocks that have the potential to give more returns compared to existing stocks in the portfolio.

5. Goal-Based Investing: In case of goal-based investment, you can book the profit of at least 6 months to 1 year in advance to avoid any unpleasant surprises near the goal.