How do you like to take profits?
How do you like to take profits?
whats your „stay safe“ / risk/reward – profit taking strategy?
Especially when buying spot crypto, are you cashing all on a 2 x, or half, or do you ride it till moon and then sell 90%?
I set different but similar goals for each coin.
- Take the initial investment back.
- Take profit #1 (depends on the coin)
- Take profit #2 (depends on the coin)
- Take profit #3 (depends on the coin)
- Take profit #4 (Moonbag. A portion of the bag I hold in case it skyrockets. If it crashes, I take profit at one of the 3 previous sale points)
Everyone has a different strategy, the idea is to have goals before you invest, and stick to it.
Let’s say you bought bitcoin at 25k, it is now at 100k so you 4x your money…. If that was your target, you should sell.
But if you keep hoping Bitcoin will reach 200k, you will not sell, therefore you may be left bag holding.
No one can 100% time the market so strategy is key.
Another option is to sell x% at milestones based on time or price.
Depends on the coin..
If its a micro cap, I remove my initial as soon as 2x and keep shaving off profits, then will eventually leave a moonbag.
High conviction play that are small/mid caps.. I remove initial at 2-4x… And shave profits as it goes up.
High cap… I’ll wait till we get into alt season and then I’ll remove my initial then shave profits as we go up.
I rarely ever sell all at once now. Missing out on potential runners feels much worse than getting rugged.
Eventually I will hold zero by the time we enter the bear market. Will wait 1yr then restock for the next bull cycle.