Small Profit with Multiple Trades or Big Profit with Single Trade

in #leofinance5 months ago

Since I am doing the ETF Strategy, in that I am actually targeting 6% pr above Profit for selling and thus getting the profit from that. Now from the last 4 months I have sold more than 20 ETFs with a Profit percentage ranging from 5% to 9%. Yes 5% because of the bear phase and I wanted cash to buy again.

image.png
Pc: Pixabay.com

So yeah with this I have gained around 5% profit till now on the total amount I have thought if investing I.e. 1Lakh. Now if I talk about CAGR, it is around 14% so it's good percentage and after some deduction it might come around 12%.

Now if I have invested this 1 Lakh in one share, I might have got the profit of 12% very soon in like 2 months or might be in 1 month no one knows. So it is actually on the individual if they want to do the small trades or go for big trades. For me doing small trade is good because in that way I am not investing all the capital at once and doing it slowly and steadily like a DCA or Dollar Cost Averaging.

I know the profit will come eventually and the good thing about picking the ETF is that I am diversifying my portfolio buy buying all the ETFs and not from one category. So even if one sector is in red, my another sector will give me the profit. So I feel the ETF Strategy to be honest is good for me because first it is conservative, if the market is going down you are not putting all the money at once. Next is that it will be giving good profit in one sector or the other, just we have to wait and grab the opportunity.