What is Profit Realization? Why is It So Important?

You need to sell the coin that you keep in your portfolio, during the appreciation unless you can not make profit. There is no guarantee in the exchange market. Coins which suddenly increases can fall suddenly too. Investors behave emotional when they see a coin which increases. They usually say “What if it increases more, I shouldn’t sell now it is gonna be great ıf it increases little bit more.”

Although the price reaches the target that investor specified, avariceness may stop the investor. Here is the example.

Let’s check the coin GAME. Assume that we bought it from the point 1 and our target is point 2. We are thinking about selling the coin from the point 2. After that It reached our target. If you do not sell it from that price, you may find yourself on point 3. There is no guarantee about that. A bird in the hand is worth two in the bush. We made 25% profit but it is 0 now. Too much ambition makes you lose! You should sell the coin and realize your profit when you reach your target unless the bird may fly from your hands.

To sum up, we put $100 and made it $140, we made $40 profit but we don’t sell because of thinking that it is gonna rise more. Next day we may lose all the profit that we made! Do not let the avarice to take control, please be contented with your targets, take your profit and leave. Our advise is Do not be sad about less profit. Your first goal should be protect the money that you invest. After you learn not to lose, you will make mucch more profit!