Locking in your gains
You hear the words thrown around, that “this stock I invested in went up X%.” So why do we have to lock in our gains. Locking in our gains or losses is making the final choice to sell your stock. The outcome of gain or loss is locked in after that.
Why is this important?
If you never sell a stock, all gains and losses are hypothetical. Whether you want to harvest the losses or utilize your gains.