Does it make sense to take out "initial investment" once profits are generated?

I understand the relief it gives to have a guaranteed "no loss" if you take out your initial investment.

But, I dont see how that would make any sense financially. If you put 1k and price rise to 5k, why would taking out 1k put you in any good/better position?

You had 5k and you can decide what to do with that, either keep investing, take out half and keep half invested, take all out and invest in something else, take 4k out and keep 1k invested, etc etc.

In all these situations taking your initial investment out makes no sense at all.

If anyone has something else to add to my thinking, please add.

Ps- Many of my friends have this idea of taking out intial investment once profits are made, and then they would have "free money" (which is the profit generated) that they can freely invest without worrying about price going up or down. And i think thats just makes no sense