Take profit: Why, When and How, Part- 2

Welcome back once again. Let’s start from where we left it.

4. Weekly resistance level

Keep an eye on resistance levels in the weekly time frame. Observe how the price behaves near resistance. If it starts weakening at the resistance, consider booking some profit. You then have two options: a. If the price drops back to support after a failed attempt to break resistance, you can buy back at the support level. b. If it’s a deviation and the price breaks out from the resistance, you can buy back after a successful breakout. Many traders regret not buying below resistance for a better entry, but how could you have known? As a trader, it’s better to enter after a confirmed breakout rather than gamble on the prediction that it will break resistance.

5. Create a journal

Trust me, this is one of the best things you can do for yourself. Divide your investments into sections: long-term, mid-term, and short-term. By doing this, you’ll keep an eye on your investments, stay updated, and track your progress.

I’ve mentioned creating a journal in my earlier blogs, and you might be tired of hearing it again, but I’ll explain why it’s so important.