How do you know when to sell?
How do you know when to sell?
I know its an individual thing, but if you are in an alt and it is pumping…when is the best time to sell? I feel as though every-time I am in a coin that starts to make some good gain I leave it to long to sell..Anyone else do that. I heard it is because of greed, we star imagining all things we can do with our new profits, but the longer we leave it the more chance of not making good profits. Does anyone have a good strategy for knowing when to sell?
Have you done any technical analysis before getting into trades? T.A will probably be one of the most important guidelines to set your target price. It could an inverse level of the leg of the move, or when the trend fails to hold the price, etc. Commonly, people who leave their trades unattended due to being overconfident that the price will continue to go up without setting a target price in mind will surely lose their profit and time in the long run.
It also depends on your bankroll management/ risk management. There are people who decide to close their position when they have 2-5% of profit or perhaps, psychologically speaking when they are happy with the returns. Remember that R/R will give a hint to know when the pull yourself in and out of the trade.
The goal is to have a consistent winning trade that you can duplicate over time to survive in the long run. Also, there are a plethora of trading strategies out there that you need to backtest, forward test, accuracy test to determine which works best for you.