CryptoAmsterdam@damskotrades
Profit Taking
Everyone asks where and how to take profit. I'll write a longer post about it soon, but it’s not about selling in exactly three months or at a precise level.
No, no.
4 simple tips:
Have you ever heard about the gambler who, after years of casino visits, walked out with $1M and never returned?
Yeah, me neither.
The last two to three years were tough, but some will make life-changing money soon.
1. CHANGE YOUR LIFE.
If you suddenly sit on life-changing money -> cash out, put it in fiat, and move it to the bank.
Leave it on exchanges? You’ll round-trip it or gamble it away in the tough cycle stages that will follow.
Do this regardless of where we are in the cycle.
2. GRADUALLY OVER TIME.
If you are printing money—start taking small weekly amounts out.
Doing this is important not just to take profit but also to build the habit of selling.
You'll need to be able to sell more later in this cycle stage, so making it a habit early on (even by low $ amounts) will make it easier later on.
3. HAVE A PLAN. (now, don't make it when euphoric)
Of course, aside from taking life-changing money out and gradually cashing out as we rise, you can:
- Set a target zone for the market to increase profit-taking.
- Set rules for a bearish higher time frame market structure break. (or whatever your systems tells you)
- Create a format to sell low amounts gradually. Where, how much, why, when?
4. FOCUS ON YOURSELF.
Focus on yourself. There will always be outliers making $20M by buying some meme at a $500k market cap.
But that’s not a realistic goal. Just because a few do this while thousands lose doesn’t mean you should aim for the same.
Most will lose and round trip it all back to zero.
$10k is a lot.
$100k is a lot.
$1M is a lot.
Don't let anyone tell you otherwise, including your mind.
Aim to finish this cycle with more money than you started. The power of having cash ready in the next bear market is insane.
Good times are coming, but make sure you’re still good in the next bear market.
