Why Taking Profits Feels Hard
1. Greed and the “What If” Trap
When a trade goes in your favour, the mind imagines even greater gains. The thought of “what if it 10x’s from here” creates hesitation. This fear of missing out (FOMO) is often stronger than the satisfaction of locking in actual profits.
2. Loss Aversion in Reverse
People hate losses more than they like gains. Ironically, this works against profit-taking: once in the green, we fear that by selling, we may “lose” the chance at higher profits.
3. Overconfidence
A winning trade can make you feel like you’ve cracked the code. That confidence biases you into thinking the trend will continue indefinitely.
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Common Scenarios Traders Face
“I hear a voice: it will go 10x. Then it turns red.”
This is classic hindsight bias. The loss of paper profits feels worse than never having made them, so you remember it vividly.
Regret of selling too early or too late.
Either outcome can sting: you regret “leaving money on the table” if it runs higher after selling, or regret “not selling soon enough” when it reverses.
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Approaches That Help
1. Predefined Exit Rules
Set profit targets (e.g., +20%) and stop-loss levels before entering.
Use trailing stops to let winners run while protecting profits.
2. Scaling Out
Sell portions along the way (e.g., take out initial capital once the trade doubles). This way, you’re still in the game but less anxious.
3. System over Emotion
Traders who follow a structured system (technical signals, risk/reward ratios) take decisions with less emotional baggage.
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