Really does that mean that you were a bit over invested in BTC if you felt that you had to cash out at a time that you did not want? 

Price was up at that time, so it is not a big deal to cash out some along the way, but yeah, we have experience another 25% price increase in just a few weeks.

I have been cashing out 1 to 2% for every $100 rise, approximately, but then if I buy back on the dips, then the total amount of value cashed out ends up being less... I have been doing some variation of this cashing out since about $250, but my total cashing out still only adds up to about 8% of my BTC holdings. 

It seems that my cashed out amount ends up being a kind of working capital that is mostly dedicated towards BTC, anyhow, so my cashed out amount is not completely cashing out in the way that you seemed to have done it. 

Don't tell anyone, but I have sometimes borrowed some short term living expenses with some of the fiat that is the working capital (but it is usually only for a few days until my cashflow is jiggered back into order).