About Profit Taking:
Left-side profit taking will suffer from the pain of missing out on sales, while right-side profit taking will experience the pain of pullbacks; long-term trading profit taking primarily tests one's mindset and discipline. The mindset is to calmly accept that one cannot buy at the lowest point or sell at the highest point; discipline means that once a long-term position has taken profit, one must never look back.
We can preset a rate of return, and upon reaching this rate, immediately take profits. For example, we preset that Bitcoin could rise 8 times from its lowest point in the next bull market, but we only take profits at 5-7 times.
About Altcoin Profit Taking:
Altcoins only capture one wave of the main upward trend. Before the bull market ends, exchanging back for Bitcoin has always been a trading discipline I adhere to, but this trading discipline may lead to missing out on some very rare altcoins. Profits and losses come from the same source; superior investment research capabilities and market insight can significantly reduce the degree of missing out. I’m not doing very well at this currently, but many excellent bloggers are doing better than I am.
About Contract Profit Taking:
In my definition, a contract is a short-term flexible position. Contracts should be short, only capturing the corresponding level of the main upward (or downward) trend I opened; the advantages of this definition include:
1. Quick entry and exit with no psychological burden; each trade stands alone and does not get confused with the overall position;
2. Increases capital utilization; with profit taking and stop-losses, contract capital will always remain flexible and not get stuck;
3. Helps maintain market sensitivity, so that one does not neglect short-term risks by defining the position as long-term in one's mind;
4. Hedging.