The Psychology Of Holding Vs Selling

Scrolling on my Twitter timeline and I saw a tweet where someone bought a coin for $400 and it’s worth $500k now, and I went deep into my imagination trying to put myself in that $500k. While thinking about that, I came to the realization that if I was to be the guy, will I watch my coin go $500k? Let’s go through this journey together.

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Imagine you were the guy, or woman, whatever gender the person might be, you saw a project, pretty early, you invest $400 at below $1 Million market cap. Few days later you notice that your $400 is now worth $10k, what’s the first thing that comes to mind? Sell or Hold? If you sell, you have successfully made $9600 profit which is huge, but if you don’t sell, there is a probability that it will pumping and you will make money, but if you still don’t sell it might dump and you might not have the chance of having that $10k again.

Remember no profit is bad profit, $9600 is a pretty decent profit for anyone, but look at the brighter side, you can still risk it for higher profit. That’s what part of my heart will be telling while the other part is telling you, take it, the coin might dip the next day with the same volatility that encouraged its pump. Having two conflicted decisions running through your mind can be really hectic, to the extent you might give in on one, could be selling and taking your profit, or leaving and letting it pump. Whatever decision you make, the best advise I can give anyone is no one regretted from taking profit, but people regretted more for not taking profit.

Or you can be the other guy, who totally removed his mind and attention from the coin, came back few weeks later and saw a huge profit, could be any amount, but let’s assume he saw the $500k profit and he took it without having a deep thought like us, because he understood that profit is profit no matter where you are taking it from, it’s always better than a loss.