๐กReturn = the change in value of an investment, so the potential profits or loss
If you invested in stocks worth $200, and they are now worth $300, your return would be $100! ๐
When your stock's price goes up, its โreturnโ will be positive. โ
But remember, return is not the same as profits ๐
You make a profit when you sell your stocks when their return is positive ๐ฐ
๐ก Profit-taking = selling a stock when it has increased in price, so that you make a profit.
So, even if your stock value increases, you don't make a profit until you sell it ๐
This is because the stock price can change! ๐ฌ
So, even if your stock is increasing one day, it can go down the next day. ๐
Letโs say you buy some stock of Tesla when itโs worth $100!
Then it goes up to $150 on Monday! ๐ค
If you donโt sell on Monday, you earn $0 but your return is still 50%.
If you sell on Monday, then you profit $50!
When you sell a stock on Bloom the value of that stock goes back to your buying power. ๐ช