Topic: When to take profit? (Read 440 times)

There is no time that the market is stable its either it goes up or down, maybe what you are talking about is when volatility (up and down) occurs with a short space of time. In market like this it is better and wait till volatility is not very fast, when the market goes up it be the time when profit will be taking.

Never trade when the market is going up or going down. At the moment the market is down and going sideways. What everyone does in this present situation is to accumulate more so that whenever the market goes up by a certain amount you can then sell them. I am not sure at which price point you made your purchase but, if it is possible for you to accumulate at different price points then do so and then sell when you think you have made enough profit.

Even when the bull starts no one can accurately tell how far this prices will go. So if you feel comfortable risking back your intial capital after making double your investment then fine. The goal is risking what you can afford to lose. Many speculation are going round for the next bull market but no one knows for sure how long the next bull might last and how far the next ATH will hit

If I'm the one on your position, I should expect that the breakeven I will be waiting will be from 2-3 years from now. It's hard to expect early because our current market season tends to be long. I would basically won't take my capital money after getting to that point. I would probably take profit atleast 2x of my investment, If I waited for few years, I would do the best so I can take out the most probable profit. At the time people taking out their profits is probably on a bull market so reaching above 2x is possible. Remember that you patiently wait for your initial investment to gain a profit, Why not wait for it to gain more.

I would suggest, like others before me, to take some profits from time to time. You may need your investment back, play relatively safe selling half of your coins for the double the price you paid for them (it could never happen, so don't spend what you can't afford to lose) and hodl the other half for the long term. But I wouldn't wait for too long and I woukd take some little profits in the next bull cycle.

This way, it should be easier for the long-term investor to keep his/her coins safe when the bears arrive.

Whenever youre satisfied with it, the risk is going out too early or miss timing the market. So think of an amount beforehand, it also depends on the time horizon of your trades. The shorter - the smaller the profits. Dont shy away from taking small profits on short time horizons.

There is an easy solution to this problem. Build 2 independent stacks:

• Stack 1 - Strictly dca, never take profits and always save a consistent amount into it every month/ week.
• Stack 2 - With this one you can actually trade actively and take profits.

With this strategy you will never have the risk of having pulled out profits too early, but can still do active trading and afford mistakes.

In addition to the tips that were given earlier, you can consider such an option when you regularly pull up the stop loss as the value of the coin increases. Thus, you will not need to sell coins until the upward movement of the coin stops and the price begins to decline.

I wouldn't say I have taken out profit since I consider myself a long-term investor and HODLer. But here's what I would if I ever find myself in a situation where taking profits is my last resort. I'd follow follow the suggestion of this  article which I found very useful. I would when there's a 30% increase and not it's a 50% or 100%. Makes much sense to considering that a lot of investors who take profit have some sort of regrets for having a wrong profit taking strategy.

It's very hard to give a good reply to this question.

The only sure thing is : you must always take some profits. Never hold forever. Sooner or later it's a good thing to take profits.
But everyone has a different strategy.
For example. If you invest 1000 dollars in a token or coin and it does a x4 for example you could decide to cash out 50% of the amount. In this case you would have doubled your investment but you would still have assets in case that token continues to grow.
But I repeat....everyone has a different strategy.

As usual, there is never enough for people to satisfy.
 
Undoubtedly, x2 is a good indicator, but when this level is reached, internally you always want x3, and then x4.

Yes, this is so and the main thing is to stop in time, as in gambling.

What matters is not what is lost, but what is gained.

Everyone have different action takes on this since not everyone's mind will correlate towards their plan and tactics upon trading. There are people settle only for small percentage and other can afford to hold for long term since they are aiming huge profit to take home in future. So investors should know theirselves and know what they can take so that their investments or trading ventures will be smooth which is also less stress for them.

That is if you can understand that the price movements of your coins can change at any time, so you want to take the opportunity to take your profits before they are lost.
But unfortunately, once we see how big our profit is, we become greedy and want even more profit, so we don't sell it at that time, and instead, we still hold it because we want to see the next high.
It won't always happen because market conditions can change at any time, so take your time and sell your coins if you can make a profit.
But it's okay if your selling target hasn't arrived and you still want to hold it, but you shouldn't be disappointed if the price drops again due to a correction.

Yes, that's right. It depends on the investor. I've hedl a token that did over 700% but I refused to sell off completely. I only sold and took out my initial capital. I believe (even till date) that the token will do exceedingly well because of its usecase. Though it has dipped drastically now, I'm still optimistic. I think investors should aim to take profit once investments do a 100%. No matter how high one thinks price could go, it's better to take out one's capital first and then allow the rest roll. It's so that no matter what later becomes of that project, one would've been saved from liquidation.

Taking profit really depends on your satisfaction. X2 of your investment is already a good selling price. One thing to learn is you should not be greedy. Don't regret if the crypto you sold pumped higher after that because no one can predict the market. Don't keep checking it then regret everytime you see its price, learn to be contented on the profit you gained. Just think that what if you hold longer then it suddenly crash when you're not monitoring it, then you just missed the opportunity to have bigger gains if you sold already.

It's no bad idea taking back your initial investment when it doubled, at least it could stand as a backup should the profit your leaving behind goes wrong.
It's much better having something to hold onto than losing it all in both capital and profit.

no particular time is needed to take out profit into cryptocurrency, the thing is that, it's only the investor that supposed to know the comfortable and exact time that is suit to go out from the market. The thing that affect them is really not to know the normal period to go out is greediness.greedy has taken the chance of many investors been profitable in the market

Only you can determine when to take profit, while investing everyone have a target of profit he or she, if the profits hits to what one desires then profit can be taking.  Taking profit is just a personal decision that someone don't need to seek for advice to know the right time when to take profit.

Honestly if I myself knows exactly what's best to do at this moment  or after this moment in the case of a change in the market price I would be doing fine but am just not fine about the whole thing, just confused like you man.
So all I can say is, depending on the price you purchased your coins, should there be a bull that probably made you feel the profit is reasonable, then you can go ahead and take out your capital and use the profit for a long term investment plan again.
With your profit at hand at least, you would have something to kick start with should things go wrong with your profit.
Just may be!

Though we can't make a perfect entry in the market, however, buying at a low price and selling them at a higher price is a profit already. But what went wrong with some people is that they become more greedy, they want to earn more and it mostly happens they miss the ATH. And to guess what, these people got easily into a panic once they see the market is dumping.

Yet, it is very important to have a plan and religiously follow it, otherwise, we just end up failing our goal. And lastly, we have to stop being greedy and be contented enough to a small profit.

i actively joined the crypto market last year january and i got TWT coin 3200. after that i reinvest everything now my portfolio is less than 1000$

There is no guarantee that your coin will increase in price by 2 times in relation to what you have invested. In addition, it is very difficult to give any recommendations without knowing what coin you have invested in. If you have chosen a coin for investment unsuccessfully, then you can completely lose your money, even if the market becomes bullish.

JamesDaniel90, each of us has a different situation and a different investment strategy and plan.
It's very important when and at what price you bought your cryptocurrencies.
Also, there is a big difference whether you want to trade cryptocurrencies or just keep them in your digital wallet and wait for the price to rise in the future.
You can invest all at once or in stages, gradually to guess the best time to enter the market.
It's always wise to withdraw earnings, but we need to have a clear plan and exit strategy, and price thresholds that meet our investment goals.
I entered crypto a long time ago and I made serious money here already and now I just keep the funds in my digital wallet and wait for a certain price threshold when I will withdraw the remaining funds, according to my exit strategy.

When to take profit? When i learned trade usually the people.says x2 from intial investment but they also says it also depends on you.
When you think is enough you should take profit rather than cry later and dont be greed (one of biggest enemy for trader)

There is no current law that stated When or what time for one to take profit because if there's everybody is going to do same thing by taking profit at that period of time ,hence when everybody does same no will profit from the market ,but there are guide lines to taking profit and it depends on the trader/investor.
For me most times I do start taking profit when my portfolio increases in this order for example
when my portfolio is 2x, 3x, 5x ..... in profit I start selling in this method
1•25% of portfolio
2•50% ,
3•70% and
4•100% of my portfolio and then I exit the market.

You have to keep in mind that investments are money in the sense that you can cash them out whenever you completely feel the need to do so. Let us say you have profited at least 10% from your investments and you badly need the cash for some emergency purpose, then feel free to do so.

Doubling your money from an investment is literally the dream scenario of every investor but this kind of event rarely happens. Especially that cryptocurrencies are high risk investments, you can either take that 20% profit or lose 50%, or the other way around.

I don't know what crypto class you are referring to but if you intend holding Bitcoin then you should have a personal target atmost a price higher than the previous ATHs. The next bull run will come with so much anxiety, FUD, FOMO, JOMO and lots of it. Keeping your profit margin realistic will help keep your profit target feasible

Long term wait is preferred because once you begin taking profit at interval you alter your entry point and might stand a risk of Buying higher than you were meant to

Following the practice of quick pum and dump is the same as gambling, you can get 100% profit in an instant, or lose it in an instant. This practice is even banned in several countries because in reality it is very detrimental to those who join, only the owner of the pump and dump channel benefits.
Bitcoin is indeed very suitable for long-term investment, and where to stop to take profits depends on the initial strategy, what is the target price you want to achieve. Because some traders are not disciplined so the strategy does not go according to plan.
Taking profits is very simple, sell when you are profitable, but how much profit you want, don't be too greedy.

Taking is a wonderful strategy but it doesn't always end well because at some point the taking out profit is made at the wrong time and if you would like to take profit I will advise you have two different investment setups which one will be for taking out a profit while the second one is for long term holding I said this because cryptocurrency market is going to verge that the current opportunity we see in the market will not be available in the next future.

Hi,

In 2021, I saw many Altcoins and Quick Pump and Dump techniques. One of the best strategy someone told me was to invest like $100 and take your initial investment out once it doubles.
If you talk about Bitcoin, you should focus on the long term and not take out your initial, instead buy the bottoms or at least DCA for some weeks when the price drops below 70%.
For altcoins and shitcoins, you can follow my above-mentioned technique.

The thing is people have wrong choice of investment and invest in altcoins when they are pumping in hope to gain more profits but they ignore their research and completely beleive others for profit making and they invest mainly in these shitcoins due to :

1) Influence of some known people who is trying to manipulate the market and fills their profit bags but the majority of them losses the amount they have invested in.

2) They think altcoins are cheap comparatively to bitcoin and can accumulate more of them ignoring that stacking sats is possible and when get rugged they say the market is risky

3) When any altcoin is going up under the pump-dump scheme through paid influence and spreading FOMO about them so the greed of people make them invest blindly in these altcoins and the results are same they loose money.

We can clearly see that crash like the current would not be survived by 80% of the shitcoins and lying dead in the wallets of holders so why go through them ? So best is to invest in bitcoin and HODL long term in it without any worry and this way you can take profits.

Your style of trading altcoins is good because you are not holding them and take out profits at time they are giving even normal returns also while others wait for huge profits and then eventually loose all the money in them.

Base on what i practice, i took away the profit and return the investment capital back tor another round, it is also advisible to add to your initial investment capital little portion realize from the profit made back to the invest except there's need arising for an urgent use of all the realized profits, but i will not advise you to use your profit for an investment taking away the initial capital away from the investment.

I don't know which coins you hold, but if you have already made double profits, the safest thing to do would be to withdraw the initial capital and just leave the profit. This plan makes perfect sense in this moment or you can withdraw all because you believe the market will fall again, and that would be a good time to buy back.

Taking profit is never wrong and even more true in bear season, in bear season it is not easy to make profit. You should be happy with what you've achieved and not greedy, greed will make you lose again in a market that's too harsh and not what we'd like.

The problem with altcoin bags is that the loss is usually higher than the gain which means even if one or two of them get pumped the dumping of the rest negates that profit. Which is why I always prefer trading altcoins than bag holding them and only buy them while they are starting to pump and sell them as quickly as possible before the dumping begins. That way the profit is somewhat ensured while I always have liquidity to catch any ongoing pump. Obviously this strategy is harder and takes a lot more effort, but it has lower risk.

Well, what he just meant was to take your ROI already if things go south you are safe from losses and the rest of it if you gain then that's profit. Someone should have a plan for their investment if they want to know what would they do if the chance is present because you are not holding your crypto forever.

But some people would just hodl it to death like they don't care then come back after 10 years and see the difference in prices. That's a super long term investment and early adoptors are lucky enough to made it and making a profit that you can't imagine compared to the price when they buy it.

One thing i have learned so far is to take out profit when it seems everyone is making money, everyone is saying that they are going to live with staking rewards etc. And cryptocurrency keywords have peaked in google trends. And literally everyone is saying that you are crazy to sell, that we are going to 100x at least from here.

I try to put more money in when i am honestly scrared that something is going to zero, even though fundamentals are better then ever.

If we can even reach to that numbers this is actually good already but also its good for people to know what numbers they can afford since as long as they are in profit and they will not be eaten by fees then everything is fine. Traders need to set their very own plan and not try to replicate others because sometimes things work for them will not come to us this is why we need proper planning to see good results.

There is no perfect timing when it comes to taking profit. If you are already in profit no matter how small or big it is, profit is profit. Don't be greedy though because you may not know what would happen next in the crypto market whether if it's bearish or bullish. You cannot simply instruct or command the whole market to go up or down because it's so very unpredictable and highly volatile. The market always wins.

Any of those strategy that will make you satisfied with your profit, that's what you must do. Experience wise, you should really be taking whether it will be in batches or a lump-sum when the market is on high.

That's the priority and as we will never know if that's the ATH, you should take opportunity at any time where you're seeing that your portfolio has gone high.

It's okay to take profit all at once or for every batch that you do. Just do not be greedy because that might lose you the opportunity to sell at profit.

Everyone's timing will be different, but definitely take profit to at least cover your initial investment so if somehow all was lost, you are even.  1.5x to 2.5x is a good range with 2x being the sweet spot.

Personally, I do not like to be too greedy as soon as it has done a x2, first thing is to remove my capital, then wait if it goes up again, I take some profit. Then I leave whatever is left for another pump.

There's no rules caston stone for taking profit. The most important thing is that always take profit. The dev is not your friend.

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.