They simply buy the coin and don’t even know when they will make a profit.
What’s the outcome?
They regret not selling and lose motivation.
In this post, I analyzed profit-taking strategies that can help you with this increase:
To start: why is a profit-taking strategy so important?
Well, in the rapidly changing cryptocurrency markets, huge gains can appear and then disappear faster than one can blink.
You must secure profits through occasional profit-taking; otherwise, you risk destroying your portfolio.
The basics are quite simple: set target prices in advance at which you plan to sell parts of your assets.
But blindly applying fixed targets without flexibility can cause you to miss out on big gains or suffer significant losses.
Here are some professional tips to improve your approach to taking profits:
1️⃣ Sell from positions at several gradual targets as the price rises.
For example, sell 20% of your tokens at 2x, another 30% at 5x, and keep the remaining 50%.
This allows you to continue participating in the rallies while also taking some profits.
2️⃣ Raise your stop-loss orders as the price rises to secure profits.
But don’t let yourself be stopped too early: be patient and flexible.
3️⃣ Carefully monitor price movements and indicators to detect signs of trend exhaustion, such as bearish divergences in the RSI, decreasing volume, loss of momentum, etc.
So, sensibly, take some profits out of the market.
4️⃣ If the entire cryptocurrency market starts to look uncertain, pull some tokens out of the market to stabilize your portfolio.
You can always re-enter on dips when conditions improve.
