💡Return = 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! 😄
When your stock's price goes up, its “return” will be positive. ➕
But remember, return is not the same as profits 🍏
You make a profit when you sell your stocks when their return is positive 💰
💡 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 👖
This is because the stock price can change! 😬
So, even if your stock is increasing one day, it can go down the next day. 📉
Let’s say you buy some stock of Tesla when it’s worth $100!
Then it goes up to $150 on Monday! 🤑
If you don’t 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. 💪