Trading Is a Mindset: Profit Taking – And Using It!

Profit taking is emotionally rewarding and encouraging. The success or failure of any trader is centered around their emotion. Fear and greed dictate the decisions of almost all traders. Crypto trading doesn’t require too much fundamental analysis. Once one understands how crypto works and invests, there is only one major hurdle: controlling emotions. Emotions cause most traders to buy at the top, and sell at the very bottom. Many people can buy at the bottom too! There are savvy investors down there, patiently and discreetly buying carefully, as not to change the momentum as they do so.

One of the best things you can do after a successful trade is rewarding yourself. I don’t mean rewarding yourself by doubling down on the investment. I mean taking half your profits and doing something fun, or buying something nice. Don’t invest it in anything similar. Spending profits on yourself has a profound psychological effect. You see the fruits of your labor. It’s more as a drug now, you’ve become addicted, you’ll do anything to get more, as opposed to having a pile of drugs and just looking at it, never using it. It instantly removes the feeling of impatience. You won’t feel like you have to go ‘all in’, and retire within a few years on a pile of cash anymore.

Profit taking will dull the sense of fear and greed. No fear as you are playing with house money, and have taken much profit on top. It won’t compound the feeling of greed, as you’ll know that could be earning more, but you’re putting happiness ahead of the money. Investing will be be a profession long after we’re gone. There’s plenty of money to be made every day! Either you’re going to make it or not. Intelligence is a negligible factor when compared with emotion.