Here's the thing about being in coins that are aggressively appreciating - the point you should sell is a dilemma.
Conversation With A Friend
My best buddy called me up today and we we're talking about Ripple (XRP). He bought about 1,300 Ripple around .70 cents and was wondering what to do at this point.
Just hold it all and wait/hope to see $10 on XRP
Sell it all now and book the 4x profit?
Decisions, Decisions...
There are other options as well, but the first thing to figure out is this:
- Do I need this Money?
- If I do need this money, when do I need it?
In his case; he and his wife I trying to buy a house. He thinks they found something, obviously in this case any extra money helps. However, he still wants exposure to Ripple (or crypto in general).
A Rule That Guarantees You Can't Lose
I always tell people that selling half of an investment once it doubles isn't the worst idea. You get all your money out and are now free rolling. No matter what happens going forward you can not be in the negative on that investment.
Granted, you have less exposure to potential future profits, but you have also just locked in those initial dollars. If you need the money it's not the worst idea to do this.
It's Easier When You Are Up More
In cases where you have seen a 4x return it is even easier to pull the trigger on your initial investment. My friend can now sell just 25% of his position to get his original capital back while still keeping a majority of his XRP in play.
Given his situation that is a no brainer.
Begs the Question Though..
When should we sell? Many of us hold coins that we have seen 5, 10 even 20X returns on yet we continue to hold strong?
What is the end goal? When is it enough? What price does a coin have to reach for us to book profits?
This is the dilemma that many face.
And it's a great dilemma to be in!!!
Learn to Invest Like The Cat
Best Regards,
Disclaimer: All content in this post is my opinion and for educational purposes.