❗Taking profits is a must have skill
“Zero, how can I take profits? Any suggestion?”
Here is a methodology divided into 3 phases I use for taking profits, independently of the next “paradigm coin”
Let's take FET as an example.
🔸Phase 1: Individuate market structure
No matter the coin, there's a price action ongoing which is usually divided into 7 steps:
• Accumulation
• First impulse
• Re-accumulation
• Second impulse
• Re-accumulation
• Third impulse
• Distribution
🔸Phase 2: Fibonacci Retracement
I find the Fibonacci Retracement tool very powerful, especially on higher timeframes.
That's why I use it to help me with important areas.
• Spot the last swing low
• Apply Fibonacci retracement
• Draw it till the swing high
Fibonacci becomes my “additional confirmation” indicator.
🔸Phase 3: Selling
I tattooed a strict plan in my mind to respect at all costs.
• Sell 20% during the 1st impulse
• Wait for the re-accumulation
• Sell 30% during the 2nd impulse
• Wait for the second re-accumulation
• Sell 40% during the 3rd impulse
• Let a 10% bag run (what if they announce a partnership with 50 cent?)
“Mate, what if the price continues to rip?”
I couldn't care less.
Once the price reaches the third impulse and the “0” Fibonacci level, my bag has already to be sold for its majority.
I think I can be more than satisfied with the profits made.
“What if it doesn't reach the third impulse?”
I already sold 50%, definitely a good portion.
I will never massacre you enough: study price action if you want to survive
Source - zeroika