Too Early for FOMO... But Never Early to Take Some Profit

in #hive-1679225 days ago

I have some price-related crypto notifications enabled on my phone from crypto.com. They can be useful for price actions of my holdings I don't watch every day, or even for a few other relevant coins I also have enabled which I don't hold.

But they have this bad habit of inducing FUD or FOMO through their notifications.

During the long range movement of the market this year, we could hardly receive any notifications, but yesterday, for example, I received a notification every 1k BTC pushed higher or retraced, with an according message. For example, at 88k after retracing from 89k, and at +9-10% intra-day gain, the message was something like "is it time to buy?"🤣. No idiots, it isn't, even if BTC goes higher from here! I'm pretty sure they aren't such idiots, they just want others to be.


Image is AI generated.

In my original planning for this bull market for one account where I have Bitcoin I had 3 thresholds marked for profit taking until this level, with progressive amounts. We hit the first level the first time we got the ATH back March. So, I sold a little bit of BTC back then (I sold at 72k in March). In the meantime, I bought it back during the long range time we had.

Yesterday, I sold 1/3 of the BTC held in that account at 86k+, above my initial thresholds. Besides the plan itself, I felt in my gut it was time to sell some. I had these gut feelings (based on a logical analysis too) in the past too. I often chose to be greedy and ignore them, and most of the time it didn't end up well. That doesn't mean I don't believe BTC will go higher before seriously correcting, because I do. It's too early to have a 25-30% correction, most likely.

But I also think this week the push higher was too strong for BTC this early, if the bull market ends in 2025.

I also don't think the moves of Saylor and Microstrategy are relevant for me. They have bought the top before. They simply don't care about entry points and have no planned exit strategy. But I care about both entry and exit points. Their aim is to control as much of BTC as possible and have the capital to throw toward this purpose, my and most people's situations are different.

So, for me, when they announced the 2bn USD purchase of BTC it was a sell signal, not a buy one.

The speed at which the market is growing these days might give us the opportunity to experience two huge runs in 2025 instead of one. We have to account for that.

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What I usually do is sell around 10%- 15% of my investment when each bullish movement occurs. If it goes down again I rebuy. Taking profits per each significant bullish movement is a must because the markets can retrace anytime. Even if it's 5% profit. You can buy more if it dips. This is the reason a lot of people lost out in the 2021 bull run. Wisdom is profitable to direct.

Absolutely! Taking profits is a must and something I am very careful about after losing an immense opportunity to do it with Splinterlands in 2021.

Regarding your strategy, how do you approach the last phase of the bull market? Do you still buy the dips? Do you take more than 10-15% profits on each run?

Close to the last phase of the bull run, I would have had around 70-80% of my investment out. If the markets are showing signs of a massive dip then I wait it out. I might still buy after the massive dip but I won't invest too much.

!discovery 20

Thanks.

Haha I sold half my DOGE yesterday! Yeah I think it's totally ok to take profits off the table for cryptos.

Nice! It has been pumping hard lately. But most specialists in memecoins say it will reach 1$, maybe even 2$. So keep some for later, if you have enough.

Yeah let's wait and see. Hehe.

Taking profits early may be very good though because we never can tell when the dip will happen

I could have waited a little longer in the context we were in. But you never know when some bad results come in and the market dips, and then, it will take a while to reach the same level, and that's wasted time.

It's never a bad idea to take profits. After all, you never know where the cycle will go. Lock in part of those gains. It's a smart choice.

It is also a way to free up some liquidity, if you don't have much or in some cases, at all...