The Art of Profit booking

What is profit booking ? Suppose I buy 100 shares of sail at Rs 27 each and sell them at Rs 50, I have booked profit or in other words I have done profit booking. But what is the role of profit booking in one's life especially if he or she doesnt indulge in stock market. Profit booking is the base on which life revolves and those who missed the point are the losers in this life.

In life, everyone is on lookout for profit booking. What does this mean ?It means that everyone wants to extract maximum from whatever little they have. For example - if you buy a Allen Solly shirt for Rs 1000 and it last just 6 months that implies that Allen Solly has booked profit on you. If you buy a shirt for Rs 50 in fashion street and you wear it for 2 years day in and day out..that means you have booked profit. Now that you have begun to understand better - let me warn you that profit booking is not limited to buying or selling. Its an universal concept. It is the concept that world thrives on. Some one once told - all people are selfish. This doesnt tell us much . But consider this - life is all about profit booking. This has a bigger range of appeal.

All dealings involve profit booking. For example, if someone is losing, someone else is surely gaining. In any deal between two individual or two distinct entities, profit booking is involved and everyone is booking profits.There might be guys or gals who might be saying "See I am booking your profit"but thats true as the existence of a red elephant.

So one has to be always on a lookout for individuals on whom you can book profits. Sometimes you might pay Rs 1000 and still book profits. There is a concept of partial profit booking as well. Its like not exactly getting the whole of profit as you wanted but getting whatever you can without getting into trouble. In some circumstances, partial profit booking is the best policy. The description of such circumstance is beyond the scope of this blog and once you understand this concept I might come back to this later.

The art of profit booking greatly depends on timing. Suppose you had a chance of profit booking but you dont book it. But then you might not get the same chance tomorrow. Worse still, someone else might book profits on you. That would be really bad.

All profit booking activites involves risk just like stock market. The successfull people are those who take calculated risks.

Here is a prayer you must say everyday.

Lord
Thou art in heaven.
Give me the art to book profits.
Give me the art to avoid being booked profit on.
Give me some bookable girls
Give me the shamelessness to say I never book profit.
Amen

Application of newtons 1st law on profit booking is something I will cover when I explain to you Newtons 1st law in non-physical space. That should be in next blog.