Who doesn't love the feeling of selling the top?
It will maximize the profits, and those profits can be used to buy in lower to gain more tokens. Once we rinse and repeat, the effect can be phenomenal.
The BTCUSDT chart below suggests points in time when one can sell the top. Such as in 2021 and 2022 in this weekly chart.
But, it will be hard to tell whether the top we determined is the top. Clearly, the top in 2018 is still below today's price, so selling it then might not seem the wise thing to do.
Well, it depends if we are a long-term investor or a trader of that asset. Nevertheless, even long-term investor needs to sell at some stage to realize the profits.
Indeed, if we need to sell, rather than wait for a possible hit-and-miss All-Time High, we should be setting a selling price at the point of buying. I imagine most of us will transact in batches, so that should be repeated for each transaction.
That means we should be defining the multiple All-Time High for ourselves relative to that deal, so to speak.
How can we actualize it? Basically, we can look at the market condition and decide on the profit-taking price in terms of percentage. Once done, set the selling price and go away. It should be a price at which we can expect to hit and can tolerate the waiting time, i.e., we know we don't need the funds in the meantime.
For this to work, we also need to get a handle on all our financial situations. Things like when and how much our regular income is streaming in, allocation in different assets, our expenditure situation... all should be clearly projected and monitored.
Much like a business owner who is operating his/her business does for managing the business' cashflow.
It is not going to be easy and will feel like it's too complicated. At the very least, what is needed is discipline in recording every transaction if one wants that to work.
Well, personally, that would be what I need to do to grab my own crypto thesis by its horn.
It certainly beats finding oneself in a frozen position, unsure of what to do when the bull market comes, and then losing all the gains accumulated.
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
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