Profit Taking

In trading, it is never wrong to take profit. How much profit do you want depends on your risk apetite and how greedy you are. Some people who are easily contented are happy with small profit, adventurous or ambitious people anticipating bigger profit. It is never wrong to take profit in the trading world, as this is the money you are earning. If not, what's the point of trading? At the end of the day, you just want to make money, increasing your capital for the next trade.

However, there are always two scenarios will happen:

1. At this moment, you decided to take profit, realized the profit and take a rest and get ready for the next trade. However, the market go further in your favour after profit taking. You regretted of taking profit and wonder whether you should jump in to join the boat. But, what will happen next??

2. You think at this point the unrealized profit is too little and you might see more realized profit if you hang on for a while. But, that might not happen. Instead of making money at that particular moment, this could end up to be a losing trade. What do we call this? Greedy!

We will never know what will happen in the market, as the market is full of excitements and uncertainties. If there's sure win cases, there will be no poverty in the world and everyone will be a happy millionaire. However, that's not true in the reality.

So, moral of the story is, if you think whether should you take profit at that particular moment, I would say, yes, go for it. At least this is what I think. Trading world is like reality show. Either you take the money home now, or fight for better money; or go home without anything or lesser than what you are getting now. We will never know what is going to happen in the future, the market is always there; realized the profit, take a rest and start a new game with better confident. Well, at least this is what I think, you might not agree with that.