Honestly, letting profits run is way easier for me, at least emotionally. Here's why:
Fear of Missing Out (FOMO): When a stock is climbing, there's this constant buzz in the back of my head – "what if it keeps going? What if I sell too early and miss out on a huge gain?" It's tempting to just hold on and see where it goes, hoping to ride the wave.
Greed: Let's face it, seeing those green numbers on the screen is pretty darn satisfying! It's like a little reward for picking the right stock. Sometimes, I get greedy and want to squeeze every last penny out of a winning position.
Regret is Worse Than Disappointment: While losing money stinks, selling a stock too early and then watching it soar feels much worse. The regret of missing out can be a powerful motivator to hold on for dear life.
Denial: Deep down, I might know a stock's rise is unsustainable, but I push those thoughts down. It's easier to live in the fantasy of continued profits than face the reality of a potential downturn.
Of course, I'm constantly working on being more disciplined and sticking to my exit strategies. But those emotional biases can be tough to overcome. The trick, I guess, is to find a balance between letting profits run and protecting myself from big losses.
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