Too many times I have burned myself by not taking profits. And every time I get the same feeling, that feeling that tells you have been a greedy idiot.
It’s so easy to get overexcited about a coin you invested in. And when it turns out to be an amazing investment that goes flying up you tell yourself: This is the new Bitcoin!! I’m going to be that guy that bought Bitcoin at 50 cents and held it all the way to $1000! Hodl Forever.
Believe me, I have been there.
So, while you are dreaming of Lamborghinis the price crashes overnight and you find yourself the next morning with a hangover and you didn’t even have a drink.
Every time I have seen my investment (that went up a lot) crashing down to normal levels or lower I get the same feeling.
‘Why didn’t I sell at $20? Now it’s back to $7 and I bought at $5’. And you get this nasty feeling in your stomach.
Nobody has ever lost money from taking profits.
In trading, this is my favorite rule. (who doesn’t like profits 😊 )
If you read my blogs you know I buy coins gradually. I have long learned that guessing the bottom is impossible. So, if I like a coin/project I buy, let’s say, $50 every two days over a period of time. This way, I get a nice buying average.
When the coin goes up and I am in the profits (more than my buying average) I start selling slowly. And with every sell, I earn profits.
Of course, you will sell to early most of the time (example: I sold Ether @ $25 and $35). But because you don't sell everything you always have some left if the price keeps rising. That only means more profits. It's a good thing.
It's simply impossible to guess the top.
The money I earn from selling I reinvest in other projects (Example: I bought STEEM with my Ether profits) or keep in dollars if I don’t know what to do with it at that moment.
This strategy has worked well for me. I now own a nice diversified crypto Portfolio. And with the amazing rise of crypto (across the board) this month I have been smiling.
So, don’t be afraid to take profits to reinvest or keep money on the side-lines.
It’s just a smart thing to do.
