BpCrypto

Altseason will happen. I guarantee it. But what’s coming will make or break you. No in-between. 🧵

➤ Article about how I sold Bitcoin $BTC at $69,000 or How to sell tokens at ATH. ➤ Leveraging low-risk market psychology to maximize profit from your positions. ➤ The one key aspect of success that, thankfully, less than 20% of people follow. Call this article what you wish, but the following point is key to ensuring profits and avoiding regrets! ◢ Psychology plays a significant role in any market, just as crucial as technical and fundamental analysis. Today, we're going to discuss the concept of profit taking. Surprisingly, this task proves to be quite challenging for many individuals. ◢ What exactly is profit taking? Profit taking is a strategy where you close a position to secure the profit you've made. It may seem simple - sell and that's it. However, many people fall into the trap of greed, hoping for even higher price growth. Does that sound familiar? ◢ Psychology plays a significant role in profit taking. The two primary emotions that influence this process are greed and fear of loss. ➜ Greed drives individuals to dream of even bigger profits. ➜ Fear of loss leads them to close positions prematurely, out of concern for losing profits they have already made. ◢ Balanced Approach To successfully take profits, it's crucial to find a balance between greed and fear. Any trade must be carefully considered: ➡︎ Why did you buy? ➡︎ What do you expect from the price? ➡︎ When is stop? ➡︎ When to take profit? ✘ If you haven't answered these questions, you are not allowed to buy. ◢ My Strategy I always conduct thorough research before buying. This includes: ▪︎ Technical Analysis ▪︎ Fundamental Analysis ▪︎ Psychological Analysis It's essential to understand what a psychological mark price is. Consider, for instance. Many people anticipated $BTC hitting $70,000. However, the price did not reach there, primarily because it represents a psychological mark. ✘ Psychological marks like $0.1, $0.5, $1, $5, $1000, and so on should not be your sole basis for closing positions if you've reached your final milestone. ✔ It's always wise to take profits early. Instead of waiting for the price to reach $1, consider a position closing point between $0.94 and $0.97, which can be a great opportunity. ◢ Here's my approach to profit-taking Since my strategy is dependent on market conditions and the specific token, let's begin by considering a promising altcoin in a bull market, specifically a high-cap token. ➜ First zone: At 3x, I close 33% of the position, retrieving the invested money. ➜ Second zone: At 4x profit from the entry point, I close another 20% of the current position. ➜ Third zone: At 5x profit from the entry point, I close another 30% of the current position. This leaves me with nearly 40% of my initial open position + 2x in fixed profit. With this, I have the option to invest in two new tokens simultaneously right now. ➜ Follow-up zones: These are at psychological levels. Since I've already made a profit, I simply close near $0.5, $1, and so on by small portions. Important point: I always leave 5-10% of the initial position, so to speak moonbag, in case of hyper-growth. Thanks to this approach, I was able to sell a small portion of my $BTC at around $68,500. ◢ Summary ✔ This approach allows me to stay liquid and constantly move into other tokens, which generates income exponentially. ✔ I stop worrying about the position when I reach 3x, as I've already taken my invested money out of the market. ✔ I implement a different strategy for each token while maintaining a similar concept. This method allows me to increase profits and reduce losses. ◢ Bear market strategy Imo, during a bear market, the best strategy is accumulation. The initial target for taking profit is likely to be at least 3x, but this can vary depending on the asset. ➜ The key is to not lose the entry point. If there are multiple confirmations indicating the start of a bullish trend, it may be worth considering buying additional tokens for short-term speculation on potential impulse. ◢ Lastly, it is worth mentioning the masses psychology. The psychology of the masses has a significant impact on profit-taking. When the majority of investors begin closing their positions, it can trigger a chain reaction that alters the overall market trend. Therefore, closely monitoring the sentiment surrounding your positions in your portfolio is of utmost importance. ✔ Pro Tip: Prepare a bull market strategy now to make quick and correct decisions and minimize mistakes.