Taking Profits

spiderdan

I'm a newbie to this space so very much learning as I go. I wanted to ask about taking profits. I'll be looking to hodl most positions but I do keep hearing that taking profits along the way is the smarter option in a bull market.

I was looking at two options with taking 20% profit when the asset goes up 60%

Example a: 1k investment rises to 1,600 = 360 withdrawal

or

Example b: Take 20% out of 600 profit = 120 withdrawal

Which strategy is better?

Cheers

fritzelly

The best strategy is whatever works for you

No harm taking 10% off at set levels and reinvesting when hits a bottom you want to invest back in at again

massdebater

Either strategy is fine, although you'll have to pay tax on any realised profits so make sure it's worth your while. I tend to leave mine invested unless I need the cash, or if it goes up a lot in a short period, then I'll skim a bit off the top. If it gets to the stage where you're nervous checking your balance, that's a good indication you might want to take a bit of profit.

If you're investing in sh1tcoins and they go crazy, it can be a good idea to take profits and reinvest them into more established coins like btc/eth. Best of luck!

melven100

My biggest regrets are when I didn't take profit when I was feeling this is a right time. Just take profits when you feel comfortable.

My golden rule now: it's better to have any profit than waiting while the bag comes from underwater.