That hesitation to take profits is something nearly every trader faces. The psychology is simple: greed often overrides discipline. When a position is green, our minds whisper “what if it goes 10x?”—and suddenly unrealized gains feel less like a win, more like a “loss of potential.”
This creates three common traps:
1. Anchoring to bigger dreams – focusing on a huge target instead of current reality.
2. Loss aversion in disguise – fearing that selling early means “losing” future upside.
3. Lack of a system – no predefined plan on when to exit, so emotions take over.
A disciplined trader combats this by:
Setting profit targets before entering a trade.
Using scaling out (selling portions as the trade works).
Applying trailing stops to lock in gains while leaving room for upside.
Yes, we’ve all regretted selling too early, or too late. But regret fades; capital preserved endures. The market always gives another opportunity—discipline ensures you’re ready for it.
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