Topic: When to take profit? - page 3. (Read 440 times)

You can not use someone else strategy to judge your own investment but what you need is to understand the cryptocurrency market.
When it comes to taking a profit you need to have an investment plan or purpose and when you do. It's what will determine the right you ought to take profit.

The idea is good and like i said your purpose is what matters and what you explain above is what I called secure your capital but there's nothing bad if you fetch another capital that you'll use to accumulate your long-term investment.

Taking of profits should always be done when you're being privileged to, that's why you should always set your stop loss and take profits, when it hits your target the trade should automatically close by itself, many before don't set there targets because when it pumps or when they see little profits, they don't take close the trade, they will want it to pump higher and more that only greed can cause them to do that, and by so doing they're exposing themselves to more losses because crypto isn't something you made a $1m with just $10 in a day, it's a gradual process so I'll advice you follow it up accordingly.

My plan is to keep my Bitcoin until god knows when, not really thinking of taking profit. When I was new to Bitcoin, I was also thinking of taking profit. The longer I stay, the more I don't think of taking profit. For now at least, it seems I am already contented with HODLing through ATHs and bottoms. Let Bitcoin's price rise to new ATHs and fall hard when correction comes, I'll remain HODLing.

It would be a different story though when talking of altcoins. As far as altcoins are concerned, take profit as soon as it is available.

That has always been the problem with investors taking profit. There's often regrets on the hindsight, either of taking it too early or taking it too late, of either not taking enough when price begins to dip or taking too much when price begins to rally up again. Greed and regret should be properly put in check when it comes to cryptos.

Yes, DCA is the way to go. However, make sure you're doing it on cryptos that are viable and with utility. Otherwise, you will be catching a falling knife.

I have just over £4000 invested at the moment.

Only started investing in Bitcoin a few weeks ago as the price had always been too expensive for me. So far I have done £300 at average price of £16k and last week I started to DCA £5 daily, I will not take profits with Bitcoin as I plan to hold for years until it reaches at least £250k.

The rest of my portfolio are altcoins and these are the ones I will be taking profits on when the market does start going up again - I understand some may not do well but as long as a few do I will be happy.

I think I will take out half of my investments once they have doubled rather than the full investment as the money is not needed desperately.

If you are bag holding altcoins there is a good chance that you will continue seeing losses indefinitely. You should learn from newcomers in 2018-2019 who have been similarly bag holding a lot of altcoins that kept losing their value because that's what altcoins do in the long run, they continue getting dumped.
Buying more of the same shitcoins is only going increase your losses.

Taking profit is part of risk-profit management. In order to reduce risk for your investment, you must take profit and get your capital back. This help you to minimize risk of losing your initial capital.

If you taking profit a part of your investment and get a part of your initial capital back, you minimize risk of losing initial capital. Because in worst case, the part you are holding in that token falls to 0, you will still have a part of initial capital.

If you taking profit when your initial capital doubles, and taking profit 50% of it, you will get all initial capital back. This mean there is 0% risk that you will lose your initial capital no matter the rest 50% part in that token moves to 0.

The best time to take profit (in risk management viewpoint) is when you see x2 of your initial capital, let's take profit 50% of it and let the rest 50% run (upward or downward, it will still be fine).

As many here have advised, I would also settle on the decision that if you have no reason to sell, then do not sell, but leave it for further growth. Time also plays a role in what period of time you are expected to invest. If you are completely satisfied with your goals, in this case, you remain a winner.

But always, the one who invests must understand that these are risks, and no one can make ideal and right decisions.

Even at the previous peak prices, I have been holding onto my hard-earned stash of bitcoin for about 4 years without selling a significant quantity ^{(I only sold the tiniest amount for a few video games)} while enduring regretful moments when bitcoin reaches 20k to 60k USD.

I have instead took my profit for being self deprived like one of those people who you disagree with..haha

Take a profit when you already know you have gained even a little, and at least there is. Because if you prolong the chance of making a profit it may suddenly disappear due to the rapid movement of prices so what profit you expect may disappear again and may not come back soon then wait again when will your expected profit return.

And if you have already made money from your initial investment, you have made the right decision to take it from what you have earned so that you are safe and you have nothing to worry about in case you do not favor the next market trend and go bankrupt but at least you have experienced it, how to take profit.

if it makes you comfortable and at ease doing this, then go for it. to be honest this is not a bad plan. I mean, after you take out your initial investment and hold it, you either grow your profit or lose some of your profit, and at the end of the day, you still have profit.

then sell when you feel comfortable. it's always better to secure your profit if you think it is good enough.

There is no one answer for everyone, as mk4 says.

What you raise is what Kiyosaki calls infinite returns: once you take out your initial investment the return you get is infinite because the initial investment is zero.

But if I were you, I would actually ask myself if you need to take it out. Think, for example, of someone who bought Bitcoin at $10. When Bitcoin reached $20 he could have taken out his initial investment, but that's not the important thing. The important thing is how long he could hold out without selling, because the longer he held out, the richer he became.

There were many people who bought very cheaply in the early years, and the vast majority sold when they made a little profit.

The few who made real money, some of them becoming multimillionaires, were those who did not sell anything for a long time, and that means enduring market downturns as well. This is what you should consider.

Because greed is on the way actually.

There are lots of users including myself whom already gained more than 2x profit but due to greed didnt sell and when the time it go down will sell it. I dont know too but why did I sold at a time it should be. The perfect answer is people become greedy and this is one thing hard to control cause we wanted more and we cant dump due to this eagerness of us to earn more. I suggest when in profit dont hesitate or at least take out your capital money.

It's subjective because different investors have different target selling price of have different factors that might affect their decisions.

Are you contented with the profits that you got? Did you set your target selling price and reached that already?
Sticking to your plan is the best option when you are taking profit. If you set $100,000 target selling price then whatever happens, sell it. If you set that you will hold for 3 years and you will sell your holdings whatever the price at that time is then do it (but not at a loss ).

There's really no one-fits-all answer to this.

- Do you think it will stop growing at 2x profits?
- Do you really need the money immediately hence why you're going to realize the profits already?
- Do you have any better place to invest your money?
- etc

The answer to your question will mostly depend on these questions, and every person would have varying answers.

If that will be enough for your needs then go for it, because IMO, I only take profit when I needed it most and I think only dumb investors who sell at a lower price.  The important thing is you've satisfied the profit that you have, if your goal profit was achieved, then that's the time to take your profit out and reinvest when the market decline again.

It sounds greedy to me if you're seeking more profit to come.
However, that's not a big deal but it should be you must be contented with what you'd have.

I would prefer to hold it for a long term and wait for a bull run or even when another ATH will come.

Hi man!

Im not an expert in that, but, i can say to you whoever say to you a response its a liar or a person with a high confidence level.

Lets me explain, you can do whatever you think its correct and this was correct. You cant know the future so yes you can take small profits or you can take after double, all its fine.

Imagine if Warren Buffet sell his position after double his gains in his early years, maybe he dont have today a lot of his well know posetion.

Its this the correct mindset? Yes and No. Maybe he can sell and if the market go down buy the dip, but again, how you can know with accuracy the time?.

Other thing its how much you need that money back.

Also you can be a Holder or being a man with cash in his hand. You need to know yourself and know what tipe of investor you are. And most important, how much this affects in your lifes, because you can maybe be a good investor who trade and take smalls profit, but if you feel this makes you stay a lot of hours behind the screen and you feel so stresed because of that, i recomend to you to saty out of that mindset, and take the long way to double and after takes profit lets see whats happen without thinking so much in it.

Well i dont know if my answer feels your requeriments or if give you more questions. But that its, its a difficult and deep question even if it seems simple.

Hi all,

First started crypto in February earlier this year so like most of us at the moment I am currently down but lately have been thinking what to do when the market does eventually start going up again. I understand this will be a while away but just wondering how & when to take profit and what everyone has done in the past or plans to do in the future?

I am thinking of taking out my initial investment when I double my money and just leaving the profit to see what returns I can get long term. Is that a common way or is it best to just take small amounts at a time?

I have read a lot lately of many people saying they did not take enough profit when the highs came in November last year and I don’t want to be one of them people and having regrets when the next bull run comes. I have been accumulating a lot over the last 4 weeks to bring my average price down on all the cryptos I own so that when the bull run does come it will not take a lot for me to double my investments and bank some profit.

Would be interesting to hear everyone’s thoughts.