In cryptocurrency trading, it is important not only to enter a position but also to exit it wisely to lock in profits. Let's consider a strategy for gradually exiting a cryptocurrency position with an initial price of $5 and a target price of up to $15 for 500 coins.
Here's how to distribute sales to minimize risks and maximize profits:
Sell 15% at each level — this will help lock in profits at different stages of growth and avoid losses during strong market fluctuations.
Trailing stop on the remaining 25% — after the price reaches $15, leave 25% of the coins with a trailing stop to catch maximum growth if the price continues to rise.
Strategy:
Cryptocurrency price $7 – sell 75 coins (15% of 500). The profit will be +40%
Cryptocurrency price $8 – sell 75 coins (15% of 500). The profit will be +60%
Cryptocurrency price $9 – sell 75 coins (15% of 500). The profit will be +80%.
Cryptocurrency price $10 – sell 75 coins (15% of 500). The profit will be +100% (2x).
Cryptocurrency price $12 – sell 75 coins (15% of 500). The profit will be +140%.
Cryptocurrency price $15 – sell 75 coins (15% of 500). The profit will be +200% (3x).
After reaching $15 – leave 125 coins (25% of 500) with a trailing stop to lock in profits if the price continues to rise.
This approach will allow you to lock in the main profits at different levels while leaving room for additional profits if the market continues to rise. If the price falls or fluctuates, stop-loss and trailing stop will help limit losses.
