My favorite thing to do when the market stops being euphoric and panic appears on social media about the bull run ending, with predictions of dropping to 40k, is to take a moment to update my bull market strategy.
Taking Profits
One of the most important things to profit from this bull market is to have a clear plan regarding taking profit. You might think it’s easy when I’m making a X5 return on my investment on [insert name of the token], I’m going to sell all and be rich.
However, consider a moment when you made what you consider a great performance on a certain token.
Did you think : I’m going to sell a part to secure my profit.
Or did you think : Oh, it’s nice, it will go even higher, I’ll sell later.
If you recognized yourself in the second category, then it’s going to be an issue during the bull run.
You need to have a clear idea of your objective in this bull run. For most of us, it’s making money, so in order to do that, we have to buy low and sell high, not buy low and hold our bags forever because you might believe that this cycle will never end.
What Strategy to use ?
- Selling a percentage of our bag when the price of a token reaches a key level. (example: 20% of your bag when Bitcoin reaches its ex-ATH)
- Start selling when you reach personal financial objectives. (example: you put 500 dollars on a token hoping to make at least 1k, so when your bag reaches 1k, you start selling to secure those profits)
Of course, there are a lot of strategies, but those are quite easy to follow and it’s better than having no exit plan. It’s also important to have a time frame and be aware of our position in the cycle. You have to start thinking about selling a lot more when we are at the end of the cycle than right now.
We still have time but start planning your exit right now !
And you, what is your strategy in this bull run?
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
