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1/ # 3.8 Selling and profit taking strategy
This is one of the most common questions people have.
I do not use sell targets. Using comparisons with the performance of other projects and how the market is going, I guess my target prices for projects over the near term.
This is one of the most common questions people have.
I do not use sell targets. Using comparisons with the performance of other projects and how the market is going, I guess my target prices for projects over the near term.
2/ I hold something until something else becomes a better option. This is part of my previously mentioned "Regular optimization of portfolio" approach. I constantly optimize for x's, across a variety of different project types for diversity.
3/ Every single time I do a portfolio update I will have someone crying 'Why did you sell X, I bought because of you! You shilled us and then dumped!'.
4/ Not only has this person demonstrated they have failed to read the pinned thread, but they have also failed to understand that me selling it has no bearing on whether I think it is a good investment or not. If I have sold X for Y its not because X is 'bad' or I don't like it.
5/ Its because I think Y is the better option right now.
For profit taking I take a % of profits on a portfolio level when certain dollar targets are reached across all tokens.
You may do it different but ALWAYS TAKE PROFITS ACCORDING TO YOUR TARGETS.
For profit taking I take a % of profits on a portfolio level when certain dollar targets are reached across all tokens.
You may do it different but ALWAYS TAKE PROFITS ACCORDING TO YOUR TARGETS.
6/ A common mistake is that when your target sell price arrives, you increase it. You targeted $40 but now think it'll go $80. So you don’t sell at 40. You hold, it goes up, then the market begins to crash at 50 dollars.
7/ When it’s at 45 you tell yourself “If it just goes back to 50 I’ll sell”, it drops to 35 and you tell yourself “Damn!, I should have sold at 45. A pump to 40 and I will definitely sell”.
8/ In the end you sell at 20, or worse hold on, hoping for another pump and up with 1/5th of the return you should have.
You will 100% face this issue. The reason is that in good market run we are all deluded. It looks great, likes it’s going to last many months more.
You will 100% face this issue. The reason is that in good market run we are all deluded. It looks great, likes it’s going to last many months more.
9/ Selling seems dumb. A waste of an opportunity. But crypto markets change fast. Stick to your profit taking goals and when things do correct you won’t mind so much.
