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Reinvesting Profits

Regarding reinvestment of profits, if you take out your profits early, that will free you from the risk that a stock can suddenly go up or down without warning. But reinvesting your profits can make you a higher return as well. If losing all of your profits - and possibly some of your capital - is acceptable, reinvestment of profits suggested as you will be able to generate a higher ROI. Regardless of how you feel about reinvesting profits, you should remember that profits are the primary reason for investing and eventually, you should pull out your profits at some point in time.

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