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I currently hold a stock (X) in which I have a 200% profit (invested about 2 years ago). I want to invest on the stock again. However, if I invest money in the stock now, the profit reduces as the price of the stock has now increased. Should I take out the profit and then invest or keep investing on top of it?

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    What country are you in? In most places investments are tracked per position, but in some they may indeed be averaged. That said, it doesn't matter if it's averaged, since the gain itself remains the same
    – littleadv
    Nov 15 at 7:14
  • I am from India. It's a Railway stock.
    – Spell Blade
    Nov 15 at 7:15

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The profit is not reduced. If you invest in more of the stock it is a separate transaction. Your original profit isn't affected.

Your current holdings should not affect whether or not you buy more of the stock, only whether you think the stock will continue to do well.

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