99% of the people don't know when to sell in crypto.
They simply buy a coin and don't even know when to book profits. Result? They regret for not selling and get demotivated.
In this post, I have talked about profit booking strategies that can help you in this bull run: First up - why is having a take profit strategy so important?
Well, in the fast-moving crypto markets, massive gains can appear then disappear quicker than you can blink. You've gotta lock in returns through occasional profit-taking or risk watching your portfolio get wrecked.
The basics are simple enough - set predefined target prices where you plan to sell portions of your holdings. But blindly using fixed targets without adaptability can get you stuck missing out on big gains or retaining large losses.
Here are some pro tips to level up your profit-taking approach:
1️⃣Scale out of positions across multiple incremental targets on the way up.
For example, sell 20% of your tokens at 2x, 30% more at 5x, and let the remaining 50% ride further.
This allows continued upside exposure while realizing some gains.
2️⃣ Trail protective stop loss orders upwards as the price climbs to lock in gains.
But don't get stopped out prematurely - use patience and wiggle room.
3️⃣ Closely monitor price action and indicators for signs of trend exhaustion, like bearish divergence on the RSI, volume drying up, loss of momentum, etc.
Then prudently take some profits off the table.
4️⃣ If the overall crypto market starts looking shaky, take some chips off the table to stabilize your portfolio.
You can always re-enter on dips as conditions improve.
5️⃣ Rebalance by rotating profits from individual coins into stable placeholder assets like USDT, UST, or BTC.
This keeps you invested in crypto's growth while reducing risk.
Beyond the technical tips, market psychology and discipline around greed/fear are just as important.
Some final tips:
✔️ Don't beat yourself up over not selling at the very peak. Profit-taking requires flexibility and accepting you won't time peaks perfectly.
✔️ Think long-term. Compounding moderate gains outperforms sporadic home runs. Slow and steady wins the race.
✔️ Learn from both successes and mistakes. Review outcomes dispassionately to continuously improve your profit-taking skills.
At the end of the day, profit-taking is not about perfectly selling every top.
It's about steadily accumulating gains to reach your financial goals, regardless of day-to-day volatility.
With the right mindset and strategically layered tactics, you can build life-changing wealth in the market.
All the best, let's print life and wife changing money this bull run!🚀
It took me a while to write this, a bit long, but worth it.
I understand many of you have unrealized gains and are in a huge drawdown. I feel your sorrow and frustration. I'll be writing a thread here so you can understand how market cycles work.
The market has cycles that always repeat themselves. These markets, like casinos, are designed for retail traders to lose money. Casinos are rich in statistics and understand human nature and emotions, operating solely for profit. They give small profits to attract consumers, who then become bait for more people. The same principle applies to financial markets, controlled by some of the smartest entities.
Consider the example of LUNA. After the crash, people bought at $1, saw it go up to $7, took profits, and then reinvested, only to lose everything. This cycle of "just one more" repeats because of greed.
I'll explain four types of market cycles and the emotions attached to them from my personal experience:
Accumulation: Happens after a strong decline when there's immense fear, hopelessness, and sadness. People are afraid to buy, thinking prices will drop further.
Uptrend: After accumulation, the market rallies. Despite fear and anxiety, prices rise, and people regret not buying earlier. Eventually, they succumb to FOMO and buy, often at the peak of the rally.
Distribution: Entities controlling the markets create euphoria and excitement, making people complacent and optimistic. They shill positive news, and retail investors keep buying, becoming exit liquidity for these entities.
Declining: From euphoria, the market starts to decline. Initially, people see this as a dip to buy, but as prices keep dropping, fear and depression set in, leading to panic selling and significant losses.
This cycle repeats. Understanding and internalizing this can make you consistently profitable in the long run.
when i look at market moves, im so glad we were able to catch multiples on coins like SIDUS VANRY SOL so early on cause this cycle is so focused towards ETFs and its so evident from how BTC is trading
had been thinking this a lot but we might not see big multiples on most mid-cap cex coins going forward with attention fully going one sector to another with all new money flowing into ETFs instead of open market
retail is more focused on sol memecoins institutions focused on btc and eth next
not capitulating but just accepting and adapting to new market is key and setting realistic expectations - this cycle is 10 times tougher than 2021 by all means and honestly, only ETH ETF can change this and if not, this is the new market to work with cause i just don't see how it could change