I invested $100 into a coin and had just doubled my money. So now my investment was worth $200. I thought about taking my initial investment of $100 out but didn’t.
My thoughts were if it has risen this high, it can probably keep going up.
It did not keep going up, it started to fall. Eventually I was up $20 instead of $100.
After experiencing this I changed how I thought of taking profits.
- Now if a coin has doubled my money I at least take half of my initial investment out.
- If a coin is rising in price I will start to take out profits gradually and not all at once.
An example is the picture below. I would take profits at the arrows. That way if the price drops after the second arrow I at least took some profits at that price
- Don’t be greedy. Take profits if you think you should. Don’t assume the price will continue to go up.
- Don’t always look for huge returns like 100-200%. Be happy with 5-20%. The smaller ones will start to add up.
- Don’t feel bad about taking profits. I have taken profits and the price has continued to rise. If I would have held them longer I would of made more money. But it is always better to have some profit than none.
Learn from my experience and use these points as a basis for when to take profits.