The pain of seeing the coin you just sold continue to double or triple in price is often more unpleasant and tormenting than being cut off, but this is not actually bad luck but a common psychological trap called Loss Aversion
๐น The underlying cause comes from the brain's defense mechanism
When we tend to cherish the small profit we are holding in our hands
Rather than betting on a larger but uncertain profit in the future
So we rush to take profits to feel safe as soon as the market fluctuates slightly
๐ธ The market always moves in waves and small corrections
That is when the Market Maker tests the psychology of the faint hearted
Making them sell at support zones before the train is relieved and runs into the main Parabolic acceleration phase
๐น The reason you take profits early is usually not because you analyze the price structure reversal
But because you dont have a specific profit plan
And let fear dominate when looking at the dancing account balance instead of looking at the price action on the chart
๐ธ To overcome this situation
Change your mindset that closing short is also a type of risk with a large opportunity cost
Apply the strategy of taking partial profits or using Trailing Stop to both preserve capital and give profits the opportunity to increase according to the trend
You often regret selling short or are satisfied because you have made a profit regardless of the market continuing to run
Do you usually feel extreme regret for selling early or satisfied with having profit regardless of the market continuing to run?
This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.
