Taking profits is personal and is completely defined by your trading style and goals. Self awareness is important to figure out what kind of trader you are. Are you patient? Are you looking for short and fast gains? Are you a researcher and looking to invest early in high quality projects?

So What Kind Of Trader Am I?

The answers to these questions completely changes the approach to taking profits. A day-trader will begin taking profits at a 5% pump however a long term investor might not remove any money from the trade until 300% gains or more. Some other factors include the innate challenges that come from trading a 24/7 market such as work, time zones or even the amount of spare hours in a day you have to trade.

At the same time there is another factor in play here as well and that is the specific coin. It is also not unusual for a single trader to operate in multiple timeframes depending on the specific coin and trade in question. Some coins you will be confident and relaxed to hold even at a loss however there are some coins that you were simply looking to trade and don’t necessarily believe in the underlying fundamentals.

If You Fail To Plan You Plan To Fail

The most important part is to make a plan. If you fail to plan you plan to fail, while the saying might be cliche there are few instances that will showcase the importance of the underlying philosophy to such an extent as trading the markets. The most successful traders have not one plan but many for the many “and if X happens to X” scenarios that can come up during a trade.

Common Sell Signals

Here are a few common rules based on TA that you can use to adapt into your trading plan. Which needs to be finalised before you make the move to start the trade. This is the most important part of your trading and will ultimately define if you succeed or are knocked out of the game.

Is the RSI heavily overbought? (the more timeframes the stronger the signal)

Has the MACD crossed down? (the more timeframes the stronger the signal)

When the WT oscillator provides a sell signal (the more timeframes the stronger the sign

When volume starts to decrease

Ichimoku plays and Bollinger Bands plays

The bigger the confluence of these indicators the stronger the signal.

Spread The Risk

The next step is creating a spread of sell orders rather than just one. The best strategy is to sell small portions on the way up due to the volatile nature of the cryptocurrency market to minimise your risk. You will feel like you are missing big profits because the pump has just begun and you have started selling however this move will save you more times than it will hurt you.

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