If you’re questioning whether you should take profit or not, ask yourself this question instead: if you had the current value of your investment in cash instead, would you still bet it all right now in the same asset?

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If you’re questioning whether you should take profit or not, ask yourself this question instead: if you had the current value of your investment in cash instead, would you still bet it all right now in the same asset?

If you are not sure of the answer perhaps you are victim of the “sunk cost fallacy”.
Let’s say you invested 1k and made 10k so far, your brain might be weighting risks and rewards based on an investment of 1k rather than the 10k you are effectively investing. Does this sound familiar: “yeah it might easily crash tomorrow but I’m already up a lot so I don’t care”.
Where the 10k are coming from should be irrelevant for a rational economic decision. Those are your money now and you should decide how to spend them as if you had them as cash in your bank account.

submitted by /u/lascia_ste
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