Despite the current market correction, the onset of a bull market is inevitable. All major indicators point to it. Barring major macroeconomic shocks or unexpected events, a bull market could start at any moment. Prices will soar, and your portfolio should lock in significant profits. But how to properly manage these profits? When to sell in a bull market? This is especially important for those who are doing it for the first time. Let's look at 5 steps to exit at the peak wisely.
1. Plan ahead
Before the rally starts, it is important to have a clear plan in advance. Do not delay and do not wait for prices to skyrocket, as anxiety can affect your decisions. Determine your selling targets: use previous highs or key resistance levels as a guide. Evaluate your projects and their growth potential. Remember, when the market starts to rise, emotions can take over.
2. Monitor market sentiment
Once the crypto market starts to climb, look for signs that a peak is approaching. While it is nearly impossible to predict the exact peak, there are certain indicators you can monitor:
- There is widespread talk about cryptocurrencies.
- All projects claim that they will be "the next big thing".
- No negative news.
If this is your first bull market, these signals can be easy to miss. Be alert and ready for a trend reversal.
3. Use technical analysis
Use technical indicators to track trends and possible market highs. Here are some useful indicators:
- 200 EMA (exponential moving average) on daily charts shows long-term trends.
- RSI (Relative Strength Index) indicates whether an asset is overbought or oversold. A high RSI may indicate an overheated market.
- Candlestick patterns such as doji or engulfing can signal a trend reversal.
These indicators take time to learn, but once you master them, you will be able to confidently navigate the market.
4. Don't give in to comparisons with others
Avoid the temptation to compare your results with those who brag about their successes. Everyone has different starting points and goals. Stick to your own plan and don’t chase after others’ successes.
5. Control your emotions
Emotions are one of the most difficult aspects of trading. During periods of growth, it seems that success will last forever, but this is an illusion. Green candles will not burn forever. To avoid FOMO, maintain a realistic view of the market and stick to your plan.
Conclusion
A bull market is on the horizon, and with it come emotions and temptations. To cope with them, it is important to prepare a plan of action in advance, which will help you choose the best time to exit.
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