The important thing to take note for this concept will be the Objective of why you want to make money from Investing or Trading.
Something to Ponder on:
1. Become a millionaire?
2. Passive Income?
3. Extra Income?
4. Financial Freedom?
5. Retirement Portfolio?
I chosen Number 5 for my Objective.
To me ultimately even if anyone choose Number 1 to 4 they have to face Number 5.
So I focus on Number 5.
Number 5 to me would means I have enough money (that I can use anytime) in different portfolio to decide whether I want to retire early or continue to work.
The reason is simple.
We need to understand that Saving is the Mother of all investment or trading.
So when you make profit in any area, the first thing you need to remember is to bring back to Saving.
I do it by using an Annual Time Frame.
If my investment or trade carry risk or big position, I will choose to cash out and put back as Saving within a yearly time frame when the market shows an obvious weakness.
In other words, if the trend is bullish, I will let it run.
Some might said I will never get a multibagger gain in any investment.
The truth is multibagger comes with Good Margin of Safety in Entry Price.
If none of my investment have a good margin of safety why not cash out and wait for one?
What works for me might not work for others.
Just read this with a pinch of salt.
Invest and Trade Safely Everyone!