Money and making it is highly psychological, this can not be over emphasise, money is easily made and lost online compared to when made offline. I feel money made offline is well valued compared when made online. Offline, you are seeing the money physically and you are placing more value to it because its feasible, you can touch it. But its not the same feeling when you are making it online and seeing your money online. Online, what you are seeing are huge figures right? You can’t touch them, you are not as moved as you would if it were in front of you, this is why when we make profit, we find it hard to take profit when trading because its online and it looks like a number game. This is the reason behind, placing a trade or buying a crypto, be in over 70% profit and you dont want to lock it in by taking profit, because you are greedy as a human and the digital market technology is making it seem like number game.
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Imagine it were to be physical trading, you bought a vintage car for $20k, then auction it, then people start bidding the price higher, but the last bid price ended at $45k and this person who wants to buy the vintage car for $45k has the cash money physically there, no matter how much you value the car, as long as you know that its been bided for a price higher than its value and the value you bought, you will sell it. There and then you know that is the best offer you got, you are in profit, which is nice, so selling is the best thing to do. But when you are trading online, you dont know if the value of your asset has reached the peak, if there will be more people willing to pay more money for the value of your asset. So you can gamble the chances, by waiting and speculating, and the digital market is very volatile, prices can pump and dump within minutes.
Before investing in whatever digital asset, always have plans on how you want to take profit, dont invest without the intentions of taking profit, have a take profit plan. When you are up and your profit reaches your desired percentage, take profit or take half, dont be the type that held, watched the value go up, didn’t take profit, then watch it dump, only to sell at a loss. That’s wasted effort and time. Remember to always lock it in, no matter what.