One of the greatest battles ever every crypto trader faces is when to actually pull out and TP (take profit). We can say this is partly associated with greed but wtf if I see my coins pumping all I can think of at that moment is "why don’t I wait a bit and earn more". In the cause of waiting, you can experience a massive downturn in that coin leaving you with regrets. That’s why if you neglect the charts.
Today, I will talking about some strategies on when to actually pull out and remain in the safe zone. Let's check it oot.
Basic moves in taking profits.
Why did you enter the market in the first place??
Before you app in on a coin, you need to know why you wish to buy the coin. Just like me, some people also enter the market for a long term hodl and that's why when the coins go side ways I have nothing to bother about because it will eventually pump back.
Some get into the market for quick profits and when when the coins go side ways, they start to panic.
The funniest thing is that the charts might be tricky pointing to go down but all of a sudden pumps massively. What will you do there?
Set stop loss.
What is stop loss you may ask?
This is an order set to buy or sell when the the price reaches the marked point.
As a trader, you must be familiar with TA (Technical Analysis). For those who don't know what it is, well, technical analysis is a trading method used to monitor investments and identify trading opportunities in trends and patterns of price seen on charts.
Analysts believe past trading activity and price changes is useful in knowing future price movements. So knowing how to read a chart is very useful because with that, you will be able how when to set your stop loss.
Also note that while setting your stop loss, to be on the safe side, never set to sell 100% of your coin. What I do is I sell in bits as the coin pumps.
For example, a coin pumps from $2 to around $5. I will just simply remove 20%. if it pumps again, I remove probably 15%. As you can see, I playing it safe and if I discover that it has started to dump, I wait till it has settled and buy back. This way, I will decide if I want the exact amount of coin or I should buy more. If I decide not to, I will either invest in another coin or I just take profits. This most recent coin I applied this to was Hive.
Pay attention to Fibonacci levels.
Fibonacci retracement are horizontal lines that indicate where support and resistance are likely to occur. It connects any two points typically a high point and a low point. The percentage levels provided are areas seen where the price could stay or retrace. The most frequently used ratios are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels should not be relied on exclusively, so it is dangerous to assume the price will reverse after hitting a specific Fibonacci level.
So guys there you have it. To effectively know when to take profits, you need to familiarize yourself to the crypto space. Even though there might be some twerks to it, there will come some time that you have to learn it. I hope this has shown you when and how to TP.
If you have some other way you do yours please don’t hesitate to share.
Till next time guys, I still remain Trojan.
Keep buzzing 🐝🐝🐝