No matter how dazzling the numbers on the screen are, if you don't cash out, it ultimately remains a fleeting dream.
In the bull market of 2020, I witnessed a friend, Lao Zhou, turn an initial investment of 4,800 U into 95,000 U in less than six months. At the celebration banquet, everyone urged him, "Take out a portion first, secure your gains." He confidently waved his hand and said, "What’s the rush? I want to reach 400,000!"
The result was less than two months, and the market took a sharp turn. His assets plummeted from 95,000 U to 32,000 U, and at that time he still insisted, "It will rise back sooner or later," but ultimately his account balance was left with only a few hundred U. The last time we met, he silently deleted the trading app and disappeared from the crypto world.
I have also paid a lot of 'tuition.' Once, my account net worth surged to 580,000 USDT, and the excitement made my heart race, keeping me awake at night, with my mind filled with fantasies of 'just one more push to a million.' However, a sudden correction made my assets shrink instantly to 190,000 USDT. During that time, I pretended to be calm during the day but stared at the K-line chart until dawn at night, repeatedly thinking, 'If only I had withdrawn earlier.'
These painful experiences have made me thoroughly understand: the hardest part of the crypto world is never making money, but pressing the pause button at the right moment to turn floating profits into real wealth.
First, why are we always reluctant to press the 'pause button'?
Greed is the most difficult obstacle to overcome in human nature. When you see assets continuously rising, your brain secretes dopamine, creating the illusion that 'you can earn more.' This emotion is particularly magnified in the crypto world—because everyone has heard the myths of getting rich overnight.
Overconfidence is another trap. After making several correct judgments in a row, it's easy to fall into the illusion of being a 'trading genius.' The result is continually raising expectations, ignoring risks, and ultimately getting a harsh lesson from the market.
The FOMO (fear of missing out) mentality further exacerbates the situation. Seeing others earn more makes one unwilling to exit early. Little do they know, the craziest times in the market are often the most dangerous.
Second, my three 'profit-taking iron rules.'
The experience gained with real money is now shared with you for free.
1. Double the principal must be withdrawn.
Every time the account net worth reaches 1.8 times the entry principal, I will forcibly withdraw 25% to a cold wallet. This money will never be reinvested in the market; it is the part that truly 'locks in profits.' The benefit of this approach is that even if subsequent operations incur losses, you have already recouped your principal, and the rest is just profit at play.
2. Profit tier locking.
When the assets reach 2.5 times the principal, I will withdraw 40% of the profit to transfer to my bank card. This part of the money completely leaves the cryptocurrency market and is used to improve my life or make other low-risk investments. The charm of the crypto world lies in high returns, but you must never put all your eggs in one basket.
3. Secure profits before planning further.
After making a profit in each trade, I always perform the 'profit withdrawal' action first before proceeding to the next step. This simple process helps you stay alert: there are always opportunities in the market, but once your principal is lost, it is hard to recover.
Third, practical profit-taking strategies, saying goodbye to 'paper wealth.'
1. Inverted pyramid profit-taking method.
This is my most commonly used strategy at present. Specific operation: sell 10% of the position at the first target price, sell 20% at the second price, and sell 30% at the third price. This method ensures that you sell more at high prices without missing good opportunities by chasing the highest point.
2. Conditional orders and trailing stop-loss.
Set profit-taking and stop-loss orders at the time of opening a position, allowing the system to execute automatically. I especially recommend the 'trailing stop-loss' feature, which automatically adjusts the stop-loss level as prices rise, effectively locking in profits. For example, set a 5% pullback range; when the price drops 5% from the peak, it automatically closes the position to avoid profit loss.
3. Emotional indicators assistance.
When extreme greed emotions appear in the market (such as the fear and greed index exceeding 80), I will activate additional profit-taking strategies. When social media fervently discusses a certain token and search indices soar, it is often a signal that the market is nearing its end.
Fourth, true wisdom: the market is always there, but the principal is not.
After experiencing several rounds of bull and bear market transitions, I deeply understand one principle: there are always opportunities in the market, but once your principal is lost, you may forever lose the qualification to participate in the game.
Those who try to catch every fluctuation and aim for the highest point mostly end up with losses. Traders who can maintain stable long-term profits understand the wisdom of 'taking the profit when it's good.'
I often tell new friends entering the market: in the crypto world, being able to earn is not a skill; being able to hold is the true ability. Formulate a profit-taking strategy that suits you and strictly implement it; this is more important than any technical analysis.
After all, no matter how beautiful the numbers on the screen are, if you don't withdraw, they are just an illusory illusion. True profits are always the money you extract from the market and put into your pocket. Follow Akai to learn more first-hand information and precise points in the crypto world; becoming your guide in the crypto sphere, learning is your greatest wealth!#ETH走势分析 #加密市场观察 $ETH
