Taking profit is not a good strategy specially at a stage when we are seeing cases of how profitable Bitcoin is if you hold it for 10 years. Bitcoin price for last 15 years is continuously going up and we don't know how far it will go from here. Short term trading can give you few bucks profit but by doing so you will miss out bigger piece of the cake.
1. Using the money to actually spend it on unnecessary luxuries (emphasis on unnecessary, as there is nothing bad to get some luxury for your self).
This is the biggest mistake most of us commit i.e. spending money on unnecessary luxuries to impress the community. Even if we have huge money it's best to invest that money in Bitcoin to secure that money or increase it's value in coming days.