Most traders lose profits not by bad entries, but by poor exits.
Here’s a repeatable framework to take profits without missing the next big move.
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Step 1: Define Your Core Capital
- Example: $100 = untouchable base.
- Any gains above this are risk capital → use for cashing out or re-entry.
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Step 2: Pick Your Profit-Taking Style
Option A – Base + Free Ride
- $100 → $200 → Sell initial $100.
- Let remaining $100 ride.
- ✅ Protects original capital.
- Best for: Long-term conviction projects.
Option B – Shave the Cream
- Each +10–20% move, sell only the profit.
- Example: $100 → $120 → Take $20 → reset base to $100.
- ✅ Frequent profit-locking.
- Best for: Volatile or swing trades.
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Step 3: Set Re-Entry Rules
- Fixed % Rule → Re-enter when price drops 15–25% from last TP.
- Support Zone Rule → Re-enter only at strong support (historical levels, Fibonacci, 200-day EMA).
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Step 4: Use Two Wallets
- Growth Wallet → Long-term “house money.”
- Cash Wallet → Realized profits (USDT/USDC/fiat).
👉 Keeps capital separate + ensures liquidity for dips.
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Step 5: Example Flow (#ETH🔥🔥🔥🔥🔥🔥 )
- Start: $100 in ETh.
- Price → $120 → Take $20 profit → reset to $100 base.
- Price → $130 → Take $30 profit → total saved = $50.
- Price drops to $90 → Add $10 back from profits.
- Price → $75 (support) → Add more from profits.
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Golden Rules
- ❌ Don’t chase back in after selling → wait for your rules.
- ✅ Keep profit-taking mechanical, not emotional.
- ✅ Always hold at least one position in projects you believe in → avoids missing major rallies.
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Takeaway:
Profit-taking is about discipline, not prediction. Protect your base, harvest gains consistently, and re-enter only by rules.