Good day, dear friends.
Today I would like to touch upon a topic that has probably already been touched upon by everyone regarding fixing profits, but from my own calculations.
Let's consider two options:
How much will we lose if we fix part of the profit, but the coin goes UP after fixing.
How much will we lose if we fix part of the profit, but the coin goes DOWN after fixing.
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He will take the example of coins: $ARKM , but this does not matter.
Total number of coins: 148.
Coin entry price: $0.679 per coin.
Current price: $2.50 per coin.
Investment amount: $100.
Current profit: $268.
Current amount of coins including profit: $368.
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Let's consider the 1st option.
If we sell 48 coins at $2.50 and the price rises to about $5, then we will have $500 + $120 that we have already withdrawn, which equals ~48 coins.
If we had NOT sold our 48 coins, our profit, including investments, would have been $740.
That is, we lost approximately $120, but at the same time, our invested money was withdrawn. Our 48 coins sold for $2.50 per coin for a total of: $120. Accordingly, we multiply this amount by 2 if the price reaches $5 per coin.
As a result, what will we get if the price per coin reaches $5:
The total profit with the withdrawal of those coins is $500.
The total profit WITHOUT withdrawing those coins is $740.
*When withdrawing our coins, we still have $120 left, and we lose only $120, and leave already clear funds for further growth. In case of a fall, this should not upset you, since the likelihood is that with this or some the same thing will happen with the coin as with LUNA, it is extremely small, in addition, this is a good opportunity to make a purchase again.
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Let's consider the 2nd option:
Let's imagine that the coin will fall to $1 per coin.
Now we can buy 120 coins, instead of our 48, if we are confident that it will probably return to our $2.50 per coin.
We have doubled our number of coins in total at the moment, and the number of coins = 220, which is equivalent to $220.
If the coin grows to $2.50, we will have: 220 * 2.5 = $550.
That is, by purchasing additional coins during the fall and in the opposite direction, you will have $182 more profit.
This case is considered only if you are absolutely sure that the coin will return to its previous values.
All figures are approximate; based on these options, you yourself choose at what figure to sell them and at what figure to buy them in addition.
Information based on personal opinion, and my small calculations, I think it’s more correct to do this if the question arises about where and when we should withdraw profit, or when we should wait.
In any case, remember to place buy and sell orders, never use market markers to buy.
