I agree with almost everything you wrote here. Just one thing to consider...
I don't think there's a problem with taking profits when the price rises, even if you think it could go higher. There's absolutely nothing wrong with making a 300% profit (buying at $0.25 and selling at $1.00). Trading - and even outright gambling - is all about percentages. After any possible expenses, pretty much any profit is good, but if you can clear 5% or more from a trade, you're in good shape.
I'm sure there will be a lot of people who are buying STEEM right now and plan to sell it if it breaks $0.20 or $0.30, or even $0.50. That's actually the smart play. Of course, you don't have to sell all of your holdings at those prices, but as long as you're making profits, it's all good in my book.
It all depends on your appetite for risk. If you have the money to park in an investment and wait it out (fully informed, of course), then you can make a lot of money doing it. Selling on the way up will always be a win. Where a lot of people run into trouble is trying to guess short-term fluctuations in order to increase profits on the way up. Most of the time, they miss their opportunities and actually end up with less profits than if they had just held and sold at their targets.
When you start making money on investments, it's hard to avoid believing that you'll continue making good decisions on every trade. I've been there before and lost some good money doing it. Fortunately, I learned my lesson after a few tries.
Good points; thanks for the reply.