A tendency arises among us. When the value of Bitcoin increases a lot, we start trading more. Which puts our trade management in jeopardy, during which most of the time people face loss.
What is your experience in this field?
Taking profits is fine when the market rises. I think this is what we saw after bitcoin reached a new ATH, many traders wanted to take some profits and we saw the price drop down to the 60,000 USD levels again. But once all the investors took their profits the price rose again. This is why it's so important to have alternative investment opportunities before we are taking profits. Just selling some bitcoin to hold fiat cash doesn't seem like a good idea to me. Trading more during bull markets implies that we are switching into other investments, which is a good thing. Diversifying our crypto coins into new projects can lead new profits, but it's not a guarantee. Taking profits only to see the Bitcoin price rise even higher is not going to feel good. Personally I wouldn't touch most of my bitcoin and just continue to hodl.