Taking profits is a decision that many investors or traders hesitate to make. Whether it's out of fear of missing out on a potential bigger gain or because they're holding on to the hope that "it'll go up even more," it's common to see people watch their profits evaporate as the market changes direction (as is the case with our beloved $USUAL ). But before anything else, let me make you reflect on some uncomfortable truths about the financial market.

1. Someone has to lose for someone to win

  • In the world of investing, it’s a zero-sum game. That means that for every winner, there’s a loser. The math is simple: the money you make in the market comes from the pockets of someone who lost. And who usually ends up on the losing side? Those who lack discipline, don’t follow strategies, or, often, don’t take profits when they should.

  • When you fail to realize your gains because you believe the market will always go up, you run the risk of becoming the liquidity the market needs. And it’s important to remember: big players, such as investment funds and professional traders, know this and are waiting for your hesitation to capture the value you left on the table.

2. The majority loses, and the profitable minority is grateful

  • Statistics show that the vast majority of financial market participants end up losing money. This happens because the majority act out of greed and fear, while the profitable minority act with strategy and rationality.

  • Taking profits is a strategic move that separates the winners from the losers. The profitable minority understands that the market is cyclical and that prices never go up or down forever. They know when to exit a position and lock in what they have already gained.

3. Someone has to turn liquidity – it’s not you

  • In the market, liquidity is the lifeblood of business. Someone has to be on the other side of your trade, either buying the asset you are selling or selling the asset you are buying. And guess who usually turns that liquidity around? Those who wait too long, those who don't take profits, and those who believe that "the market will recover."

  • When you don’t take profits, you’re essentially giving the market the opportunity to turn your gains into losses. And in this scenario, the big players win.

📍"But what if it goes up more?"

  • This is the mindset that keeps many people from taking profits. But here’s the truth: no one can predict the future. The market can keep going up, but it can also fall sharply. Taking profits doesn’t mean you’re giving up on earning more; it means you’re locking in what you’ve already earned.

  • A sensible approach is to take profits in chunks. Selling a fraction of your position allows you to lock in some of your profit while still benefiting from a potential upward move.

4. The cost of hesitation

  • Not realizing profits can cost you dearly. As the saying goes, "Profits on paper aren't real until they're realized." Don't let greed or hope blind you. The market has no mercy on those who act without strategy.

So, let me try to convince you again? Taking profits is a practice that protects what you have already achieved. Don't become the liquidity of the market. Think about it and make rational decisions. After all, what do you really have to lose by securing what is already yours?