Profit takers and bag holders
- The recent huge profits earned by early investors in Pepe coin suggested to many that perhaps we were entering a bull market, which means soon we could be in the much awaited Altcoin Season, when altcoin prices go up and up.
- On my five year journey through part of the cryptocurrency frontier I have lost money, made money, and experienced many highs and many lows.
- This article is about part of my journey.
Altcoin season, bag holders and profit takers
Altcoin season
- Altcoins are basically anything which isn’t Bitcoin
- Altcoin season is the part of the Bull Market after the surge in Bitcoins price, when all the altcoins go up in price.
- But's very hard to contuue purchasing coins during a bear market when prices are low and market sentiment is poor. But most whales and successful traders will tell you that purchases made during the bear market bring you the biggest profits during the bull market.
- But the hardest thing about Altcoin Season is not waiting for it to occur. The hardest thing is selling your altcoins when you have good profits and before the next bear starts and converting your gains to stable coins safely stored in your own wallet.
- It is hard for me and it will be hard for you to sell your altcoins when you held and accumulated them through the bear market.
- They will have become part of you and you won’t want to part with them.
- But you must take profit because while past performance is not a guarantee of the future, the only thing consistent about crypto markets is that they go up and then they go down.
- Everyone who finds the strength to sell during the pull market will be able to taste success and be able to buy back into the next bear market.
- I know it’s important to believe in projects and accumulate tokens, but it’s also important to protect your capitol and take profit.
Bag holders
- If you’re not a profit taker then you will become a bag holder.
- Jn my 5 years here I watched cryptocurrency follow a repeated pattern of bear and bull markets.
- Every bull market is filled with elation and a feeling that the prices will go up forever, and every bear market is met with disbelief.
- There is a time proven statement : the market is always right so betting against the market is futile.
- Bag holders watch the price rise and dreams of ever increasing prices dance in their heads.
- Then they watch prices fall and continue to hold their tokens waiting for the reversal that doesn’t come.
- And their altcoin prices drop lower and lower until they have 90% plus losses.
- Then they wish they sold earlier.
Profit Takers
This is not complicated like physics.
But it takes planning, discipline and a willingness to sell when others are buying.
Basically you should take profits as tokens rise, most use goals like doubles, triples etc to slowly reduce positions and store gains in stable coins. Then during the bear build your positions again.
Most importantly, You need to establish your sell points going into an investment and then have the discipline to execute your plans.
I suggest you don’t try to make every last bit of profit, don’t get greedy, stick to your plan.
I can’t tell you how many times I have seen pattern of rise and fall happen.
It’s amazing and what’s more amazing is how so many people ignore it and don’t profit from it.
My journey
- This is my journey, which I share with you, because I hope you can avoid the mistakes I made.
- Don’t be a Bag Holder, be a Profit Taker, remember your greatest allegiance should be to yourself.
- And remember you can be a supporter of a project without being a bag holder. Take profits and come back buy into the project again later. If it's a good project, it will still be here during the bear market, and you will be able to buy a bigger position, or larger number of tokens, because they usually are cheaper, much cheaper. But always focus on growing your position and protecting your capitol.
- Lastly remember that the person responsible for looking out for your interest is you.
- Selling tokens and taking a profit does not mean you don't believe in a project or that you don't support it.
- It just means you remember why your investing, to make a profit, and most importantly, you know you can't support a project if your broke.
- Broke people can't invest in a project, so they are of limited value.
- Plus they have a very bad attitude ,and so would you if you lost all your investment capitol in a project.
- DOn't be that investor who watchs the token price go up, up, up and then down, down, down, and fail to take profit on the way up, and didn't get out in time, on the way down.
- Plan your entry, plan your exit, don't be greedy, stick to your trading plan.
- Never apologize or feel bad for protecting your capitol.
- It doesn’t mean your abandoning a project, it just means your building your protecting your ability to invest in it in the future.
- And I repeat…
- You need to establish your sell points going into an investment and then have the discipline to execute your plans.
- I suggest you don’t try to make every last bit of profit, don’t get greedy, and stick to your plan.
- Remember bears can get rich, bulls can get rich, but pigs can and do get slaughtered.
