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We can endlessly talk about strategies for trading $BTC, $ETH and $ALTS, but without an exit strategy, your odds of making it are slim.
Here are my thoughts on exit strategies in this bull market. https://twitter.com/CryptoJelleNL/status/1359157300334854147
We can endlessly talk about strategies for trading $BTC, $ETH and $ALTS, but without an exit strategy, your odds of making it are slim.
Here are my thoughts on exit strategies in this bull market. https://twitter.com/CryptoJelleNL/status/1359157300334854147
Taking profit is the most difficult part of participating in this market. Numbers fly up so fast that clicking the red button makes you feel tremendous fear of missing out. âWhat if it goes up another 5x?â, you ask yourself.
Chatty influencers will sell you âUp Onlyâ, and âNever sellâ but deep down we all know thats bullshit. They will dump on you.
Time to reverse the game and prevent a repeat of 2017, in which many of us ended a bag holder. Remember the pain?
Time to reverse the game and prevent a repeat of 2017, in which many of us ended a bag holder. Remember the pain?
As you know I started accumulating $ETH at $167, and kept DCA-ing in until the mid $500s. Similarly, Iâve been buying $BTC from $6700 until the $13000s.
So how do I take profit? Well, itâs quite simple. Let me explain how I go at it.
So how do I take profit? Well, itâs quite simple. Let me explain how I go at it.
Your priority right now is - if you donât have them already - determine some targets. Use fibonacci, pull numbers out of your ass, it doesnât matter. Letâs take $2,500 per $ETH as a first target (EXAMPLE, NOT ADVICE).
You have your $ETH bag, and we hit the $2,500 target. Do you sell the whole stack? Absolutely the fuck not. While âUp onlyâ might be bullshit, thereâs some truth there. Things can go up much more than you expect.
Iâd recommend selling 10-20% of your stack at your TP1, but if you have not recovered your investment, Iâd take out as much as needed to do so.
Having recovered your investment essentially makes you ârisk-freeâ. In a worst-case scenario, you give back your profits.
Having recovered your investment essentially makes you ârisk-freeâ. In a worst-case scenario, you give back your profits.
But it doesnât end there. You still have 80-90% of your stack. Thatâs where the rest of your exit strategy comes in. From the point you recover your investment, any money you take out of the market is pure profit.
This is where the fun starts.
This is where the fun starts.
At your second target (Letâs say $3750 per $ETH), you sell another 10% and send it to the bank. Youâve now secured your principal, and profits. Youâve made it. You beat the market. Congrats.
You still have 70-80% of your bag btw.
You still have 70-80% of your bag btw.
From now your targets become crazier. $5000, $6750, $8500, $10000, whatever. At every target, you secure 10-15% more.
It doesnât even matter if the last 10% of your bag nukes, youâll have made more than enough.
It doesnât even matter if the last 10% of your bag nukes, youâll have made more than enough.
While âScaling outâ, you donât have to sit still. You can still trade your stack and grow it. In doing so, I recently sold a chunk of $ETH and made those units back in the days following it. Paid myself without losing units.
This is the goal.
This is the goal.
Anyway, thatâs how I scale out. Bit by bit, you sell chunks of your portfolio for fiat, take it out. Putting it back into the market is illegal, only in the next cycle.
This method may not yield the absolute maximum return, but it locks in your success early on.
This method may not yield the absolute maximum return, but it locks in your success early on.
It's probably not the perfect way, but it works for me. I hope this helps. If you have any questions, do not hesitate to ask.
Thanks for reading.
If you need an exchange, join me on FTX. I got you a 5% discount on fees :) https://ftx.com/#a=cryptojellenl
Thanks for reading.
If you need an exchange, join me on FTX. I got you a 5% discount on fees :) https://ftx.com/#a=cryptojellenl
