Most of us though would love to sell we just don’t do it. This is simply because we want to save the cake and eat it too! However, for a long term investor, when he gets the price right, he sells. This could be a considerably good profit or it could be a value with which a need of his could be fulfilled. But in addition to these aspects, there are far more intricate market related aspects that are taken into consideration by a day-trader before selling.
The day-trader simply wants profit. It is important how much profit he makes at every sell but it is more important what he made at the end of the day. Strategy, analysis, planning and control, all of these count.
The selling begins when the value of the coin starts shooting above the break-point. In this bullish graph, maximum benefit is reaped by the seller. It is important to note that selling is a continuous process. One begins selling as soon as the graph shoots above the break-point that the trader had marked.
When the graph hits a pinnacle until now in the coin’s life or for that particular day, maximum selling should take place until a significant resistance is noted. When resistance ensues, one can actually wait and watch after reaping the benefits to the heart’s content. When will this pinnacle be reached is nobody’s guess for we cannot predict what the market does. We simply go with what the market asks us to do.
So one has to plan very clearly one’s sells. The points and the value at which one sells is important. It is true that the earnings of a day-trader is calculated day-wise. But it is fine to wait for a day or two and compensate the earnings with better gains. If you have lesser coins and feel that the market will head even further bullish the following day then you may hold for the next day.
The one who studies the market thoroughly will be able to control his selling in the right way. And also when stagnation ensues around the break-point, it is better to hold the coins. When stagnation ensues at the pinnacle, one has to understand the behavior of the coin from its past patterns and take a call to either sell more or hold by expecting the market to soar further higher. But one important advice is to hold some coins always as part of investment as well as to be ready to sell when the market takes a sudden higher flight.
For me, when I decided to sell it currently for my trading plan if that was successful or a loss. But in the end the right way to sell if it is really the right way to choose from.
