When in doubt about whether to continue holding or to sell?
In a bull market, everyone is excited about making profits, and many have forgotten how their accounts were in the red before.
I have been in that situation during the bull cycle of 2021 when the market wiped out all my profits in just a few short weeks. At that time, I was greedy, thinking it would go up further.
Currently, I see many friends have made some profits from their investments, yet many are hesitant to hold for fear of a price drop, and are afraid of selling too early and getting burned. In the excitement of the market, greed and fear still exist within each person. So, what should we do?
1. If you've already tripled or quadrupled your investment, I honestly advise you to withdraw your principal and then take profits gradually at different price levels. Instead of selling everything or holding on, which only makes you uncomfortable. This way, you can preserve your capital while still having coins to sell if the market rises.
If there is a drop, you will still feel comfortable because you've withdrawn your principal, only losing part of your profits. At this point, holding onto coins will also give you confidence to wait for the market to recover.
2. If you have profits but haven't tripled or quadrupled, and you're not sure whether to hold or sell, in my opinion, the best approach is to sell 50% and keep 50%. If the price goes up, you still have 50% left to sell; if the price drops, you've already sold 50%.
💎💎No one is skilled enough to buy at the bottom and sell at the top. Before thinking about grander things or protecting yourself, first protect the capital you've created.
P/S: This is the chart #LINK ; I've been DCA-ing since 2022, and I've already quadrupled my investment, I withdrew my principal when the price was at $26, and recently started taking profits at $30. I think this asset can go up further, and if it does, I'll continue to take profits.
It’s been raining too heavily this weekend, can’t go anywhere. Just wanted to share here!