Just a reminder that actually the hardest thing to do in Crypto, is to take profits.
REMINDER
Of course with reference to the event of the past days, but also just generally. Profit taking has by far been the most difficult thing to do for most investors and that probably not just in Crypto, but the whole investment world. We usually debate about “when to buy“ and make it seems as if this the hardest to do, while it certainly is difficult to know when to enter the market, leaving is much worse.
Which is basically due to the emotional attachment you grow with you holdings (that is why we say to not be emotional while trading), but the most common problem has always been greed. I think everyone of us knows the feeling of not being ready to sell at $1 because you think there is more potential, or you simply want more.
On top of that comes the fear of regret or in other words the fear of a missed opportunity. We just simply can‘t imagine to one day feel the regret of selling too low, mostly because we have historically seen many other people make the same mistake and especially in Crypto we have the countless stories of early adopters leaving the market with BTC under even $1k or $100 or just at a few bucks.
So I hope this post makes it clear that you should always have a plan for a scenario to take profits, or if you don‘t have one you should at least contemplate all possible paths, instead of taking an emotionally-driven decision that will just be obviously bad at the end. And most important of all, don‘t live in hindsight.
Just a reminder that actually the hardest thing to do in Crypto, is to take profits. REMINDER Of course with reference to the event of the past days, but also just generally. Profit taking has by far been the most difficult thing to do for most investors and that probably not just in Crypto, but the whole investment world. We usually debate about “when to buy“ and make it seems as if this the hardest to do, while it certainly is difficult to know when to enter the market, leaving is much worse.
Which is basically due to the emotional attachment you grow with you holdings (that is why we say to not be emotional while trading), but the most common problem has always been greed. I think everyone of us knows the feeling of not being ready to sell at $1 because you think there is more potential, or you simply want more.
On top of that comes the fear of regret or in other words the fear of a missed opportunity. We just simply can‘t imagine to one day feel the regret of selling too low, mostly because we have historically seen many other people make the same mistake and especially in Crypto we have the countless stories of early adopters leaving the market with BTC under even $1k or $100 or just at a few bucks.
So I hope this post makes it clear that you should always have a plan for a scenario to take profits, or if you don‘t have one you should at least contemplate all possible paths, instead of taking an emotionally-driven decision that will just be obviously bad at the end. And most important of all, don‘t live in hindsight.