I saw a post here:

When to cover my short. I am up about $25000 but I believe DSL will got to about $12 a share, so do I cover or get greedy. Once one covers he won’t find shares to short again. Tough choice.

I saw an answer in one of the sources I’ve read, don’t recall where. When you take some profit, and the next day the stock continues to move in the same direction you’ll be sorry that you did that. If it moves in opposite direction you’ll be sorry that you did not sell everything. If you don’t take any profit (on short) and the stock will tank you’ll be very happy but if it jumps you’ll be very sorry. If you sell everything it’s the same story.

The moral is, your chances to be sorry are much bigger then your chances to be happy, whatever happens. The chances are just against you.

So, you must be prepared that whatever you do you will not be happy about that. It is important to be prepared in advance that you’ll be unhappy. And if you are prepared to be unhappy in advance maybe when it happens you won’t be 🙂

Just keep you portfolio in balance, don’t be too emotional, stick with the plan, read books. That will make you satisfied in the long run

Update: Alcoholocaust said it better than I did in the comments section, please read