How can you stop profits in a timely manner in the crypto bull market?

24-02-20 14:34

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Original Title: My strategies for taking profits

Original Author: THE DEFI INVESTOR

Original Translation: Deep Tide TechFlow

Many people made a lot of money in the last bull market, but what really matters is not how much money you made.

But when the inevitable bear market arrives, how much profit can you retain?

Many successful people in the previous cycle ultimately lost all their profits due to greed, fear of missing out on potential future gains, or poor exit plans.

Given this, today I will share my cryptocurrency profit strategy to maximize my profits in a bull market.

Profit Strategy

Your profit strategy should be based on two things:

· Your time range

· Are you a technical analysis-based trader or a fundamental-based investor?

Most of my capital is invested in long-term investments, and occasionally I engage in short-term trading based on fundamentals and volatility.

Therefore, in this article, I will mainly focus on my strategies for profiting from long-term positions and short-term narrative investments.

But before we begin, here's a tip:

Whether you are a long-term or short-term investor, strive not to become a loyal member of the cryptocurrency community who never sells, because nothing will rise forever.

Many people find it difficult to profit mainly because they feel they have become a part of the project community and are no longer able to think objectively.

The cruel fact is that 95% of cryptocurrencies will eventually disappear. If you don't make a profit, someone else will take profit and stop loss.

Short-term Position

I have established short-term positions in the crypto narrative that I expect to receive significant attention.

When trying to make predictions, I consider many things, but the three most important are:

· What projects are currently popular on Crypto Twitter due to social media hype?

· Upcoming catalysts (new product releases, multi-chain expansion, etc.)

· Congming Qian's recently purchased token

I will profit from these positions based on fundamental and technical factors.

First and foremost, the most important thing to remember as a narrative trader is that 90% of hype events will eventually turn into "sell the news" events.

Let's take a look at the BTC price trend after the approval of Bitcoin ETF.

Although Bitcoin ETF has witnessed a huge influx of funds, in the short term, its approval has ultimately become a major sell-off news event.

This may be because the market has already priced in Bitcoin due to the crazy hype surrounding this event on encrypted Twitter.

Therefore, when I purchase a token with the intention of holding it for the short term due to an upcoming catalyst, I usually take profits on a portion or even sell my entire position before the catalyst lands.

Next, as I mentioned earlier, I also use technical triggers to profitably close short-term positions.

I am not someone who is good at trading analysis, but I believe that there are psychological factors at play when prices attempt to break through previous resistance levels.

For example, the K-line chart of FXS price is shown below.