Compounding or reinvesting makes sense, because that's how you grow your investment without bringing more outside money. But taking profit out is also important.
There are two problems here from my experience. Not taking more profit out when the price is high and less when the price is low is one of them. Psychologically, we are inclined to do the reverse. Compound the high rewards, and take out when it crashes.
The second one is over-diversification. Most of us do it, one way or another in crypto, and that's really detrimental, because we simply run out of time to manage all the investments, not to mention knowing the ins and outs for each of them (at least the core ones).
Agree with you regarding these problems that you listed... The first one, with selling low, and not taking profits high can be solved and "trained"... lol... But, it needs time and patience...
And tbh, I had the second one experienced too on my own skin... lol... remembered my beginnings in crypto in 2017, when I bought a bunch of shitcoins that I "thought" will hit the moon... of course, most of them have died, or they are near to (ground, not the moon) zero... lol...
I still have gazillion tokens on Hive-Engine, and on other blockchains, but I exactly know which one do I hold for the long term, and which ones are just to take some short-term profits...
Of course, nobody is perfect, and we all have our "hopes and dreams" in some shitcoins.... hahahaha...
!PIZZA
Posted Using LeoFinance Beta