Capturing profits throughout a bull run is an essential strategy to secure your gains while maximizing your profit potential. Here is a professional and balanced method that also incorporates reinvestment strategies to maximize your performance.
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Why take profits regularly?
1. Risk Reduction: Bull runs are often followed by sharp corrections. Taking profits protects your gains against these fluctuations.
2. Mastered Psychology: This allows you to remain rational in the face of volatility, avoiding euphoria and FOMO.
3. Strategy Optimization: Active earnings management allows you to reinvest intelligently and capitalize on future fluctuations.
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Complete Profit Taking and Reinvestment Strategy
Step 1: Recovering Benefits After a Pump
For each significant increase, collect a percentage of the gains made while leaving a share to profit from a possible bullish continuation:
- 10-20% Pumps: Take 10-15% off any gains you make.
- 20-40% Pumps: Remove **20-30% of any gains made.
- Pumps over 50%: Remove 30-40% of the gains made.
Step 2: Reinvest part of it in DCA on declines
Once you have recovered your profits, reinvest a portion (for example 50%) according to the DCA (Dollar Cost Averaging) strategy by placing three decreasing buy orders on half of the previous pump.
Example: If the asset goes up 40%, place three buy orders at:
- -10% from the summit.
- -20% of the summit.
- -30% of the summit.
This allows you to take advantage of corrections while optimizing your average purchase cost.
Step 3: Consolidate after several push-ups
Once you have recovered the equivalent of your initial investment after several pumps:
1. Place a sell order at the ATH (All-Time High) for 50% of your remaining position to lock in more profits in case of a new surge.
2. For the remaining balance, apply an upward DCA strategy:
- Place three incremental sell orders at higher price levels (e.g. +20%, +40%, +60%).
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Practical example:
1. You invest $1,000. The asset pumps 30%. You get 20% of the gains, or $60.
2. You reinvest $30 in DCA on corrections of -10%, -20%, -30%.
3. After several cycles, you have recovered your initial investment. You then place 50% of your remaining position in sell at the ATH and prepare three upward orders.
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Conclusion
This balanced strategy combines security and optimization:
- Secure your winnings with regular withdrawals.
- Take advantage of declines to strengthen your positions at a lower cost.
- Maximize future increases through strategic orders.
Discipline and adaptation are your best allies to get the most out of a bull run while minimizing the risks.