Trading is a very difficult thing, and it does not work well for everyone. Sometimes we will see the profits in front of our eyes, but unfortunately, we might miss it because of greed. I recently had a similar situation where I bought some Hive when the price was close to 21 cents. I saw the price reaching 23 cents, but I was greedy, thinking that the price would touch 25 cents, and I was waiting. I saw a decent profit right in front of my eyes. But I wanted to wait and book a bigger profit.
Unfortunately, the price dropped and the price is now around 20 cents now, which is even lower than the buy price. This is where greed made me miss a golden swing trading opportunity. If I had sold my Hive when the price was around 23 cents, I could have purchased Hive back at the current market price, which would have given me a decent profit. When we start trading, we usually set our minds to smaller profits and get started. But gradually, when we see a decent profit, we want to push hard and wait for more. This is where the mistake happens, where we end up missing a great opportunity.
For some people who are doing the trading professionally, this may not happen because they might have a stop loss in mind. For example, if the price reached 23 cents and if it happens to go below 22.5 cents, then they might book the profits. We should always think that it is very unlikely for the price to go above 23 cents in that case. This way, we will have a stop loss that will trigger and book our profits. If we leave a loose end and wait for it to go further up, it can suddenly drop down below 21 cents, which is the buy price, and ultimately give no profit at all, and sometimes a loss too.
I know it is easier said than done. But some people automate this strategy and try to book decent profits. By automating this trading strategy, it is a good thing because it will not trigger our greed but instead things will go systematically. In my opinion, I have to overcome this slight greed and be open to accepting smaller profits. If I had done that, I would now have another opportunity to buy again and wait for it to go high again to sell.
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