Perhaps, I may have to change my cashing out formula because the formula allows for my selling about 1% for every 10% price rise, so for example, if I start out with $100, and the price shoots up 10x, then I have cashed out about the equivalent of my original investment of $100 but I still have about 9x of the principle which is $900. The same thing is true for the next 10x and the next 10x, so if anyone follows such a formula, then he would not run out of BTC to sell in the event that the price continues to increase by 10x, yet he will have accumulated a lot of fiat, to decide whether to keep it for reinvesting (because I don't think that we ever go up a straight 10x without some kind of price correction in there) or to cash some or all of that fiat out.
Why cash out at all if you already have enough fiat? Why not just ride the whole stack up?
I have been employing this system (more or less) on the way up since about $250 (starting in October 2015), and I am learning along the way, because in the beginning, sometimes I would get too excited by price movements in one direction and I would deviate from the system - which only caused me to fuck myself in the end... A good example is my newbie application of his system when the price shot up from $270 to $500 in November 2015, I sold way too little.. and I was not able to take as much advantage of the dip back down to $300.. fuck.. I learned from that to just follow my formula... and, yeah, I have not been perfectly following it, because even I can become emotional with great market moves and stagnation.
I became more disciplined in stopping my deviation from following the formula, and after I stopped deviating and only tweaking my application a little bit here and there, the system ended up working so much better because we are really never able to determine exactly when the price is going to turn, and I don't know how to make those kinds of predictions and I don't really believe folks who claim to be able to make those kinds of predictions.
I mean, we had a 70% price correction, and I would have been decently comfortable buying BTC down to a 90% or more correction, if it would have happened (of course I would not have liked it, but my system allowed the building up of fiat that could be used for buying back all the way down, if the price were to go down).
Even though in my earlier post I started out saying that "I may have to change my cashing out formula", I am thinking that I am lying with that kind of assertion because I really don't conclude that it would be wise to change something that really works to prepare for both UP and DOWN...
Surely, I still get nervous in each price direction and when the price seems to be moving beyond rational expectations, and sometimes I wish that I would have NOT sold so much or I wish that I would have bought more.. or I wished that I would have sold more.. blah blah blah.. we know the drill about having some regrets after the market has already moved. but in the end, we don't really know what the fuck the market is going to do and when it is going to do it and for how long it is going to do it. So, just following the formula with minor tweaks here and there really provides a lot of comfort and insurance for such seemingly ongoing volatile asset like this bitcoin thingie ma-jiggie.
Seem like one of the biggest guarantees that we have in bitcoin remains volatility.. NOT whether we are going up or if we are going down... but just volatility.. and if we are understanding the fundamentals of bitcoin sufficiently, then we can recognize that there is a decent chance that even though we are going up and down and up and down, just like the rollercoaster guy, it remains quite likely that we are going to continue to have upwards BTC price movement on an ongoing basis and in the long run.. and BTFD remains a good practice to have and a good thing to prepare for on an ongoing basis by selling small amounts on the way up.......
So, largely, the last few days, I have been mostly selling, and it looks like I am going to continue to be selling, and the amounts are small because we cannot be sure if we are continuing to go up or when this little fake out bad boy is going to reverse.. Maybe it will and maybe it won't and in the end my strategy allows me to NOT care... even though I am hoping a bit more that we be going UP.. UP is so much more fun than DOWN, no?.... Bring on the hookers, blow and lambos... hahahahahaha
