Thread by @willposk

#BTC & #ETH are down.

You need to take profits in #crypto so you can buy dips like this.

This year i made big gains on $GALA , $SOL & #Polygon but i always took profits & managed risk

Here is a simple 🧵 on how i do it 👇

Retweet + share + follow if you found it useful 🤝

1/ UPDATE

A few people asked me to revisit this topic & had a couple of questions around my approach. So i hope you find it useful/ more detailed.

Any more Qs? Please comment at the bottom of the thread 👍

2/ PORTFOLIO - PT1

Whilst i made big gains on a number of riskier plays like $MANA $SAND $GALA & other #altcoins many of them are now down from all time highs.

However i am not worried because i de-risked myself and always took profits along the way.

3/ PORTFOLIO - PT2

When i take profits i always aim to layer into blue chips coins and have the following portfolio split:

#bitcoin -40%
#etherum - 20%
#solana - 20%
#polygon - 5%
riskier #altcoins - 15%

4/PORTFOLIO - PT3

My hypothesis here is:
- #bitcoin is the most "stable" store of value & want to stack as many as possible.
-$ETH & $SOL/#MATIC IMO will be the dominent L1s
-IF $ETH does win it will be via $matic

5/ PORTFLIO - PT3

Outside of my portfolio i also have an additional 20% in stablecoin

SO if your total portfolio was $1M
You should have $200k in stablecoins ready to buy dips.

6/ PORTFOLIO - PT4

Others may have lots of #metaverse & #NFT plays, but i will never forget in the last bear market most went to zero.

I also think most #metaverse plays like $GALA & $SAND are massively overvalued right now.See the image below

7/ PORTFOLIO - PT5

I DO think projects like $GALA have huge future potential, but i would never aim to buy at the top.

Bigger money will be made by buying projects like that in the deepest of bear markets.

Remember: the price you buy is more important than price you sell.

8/ TAKING PROFITS

The trick is to always take profits & de risk on projects like $GALA & other alts.

But what is the best way to take profits? I tried many different approaches & i will now share with you my preferred approach.

This is what works for me, others my disagree.

9/ TAKING PROFITS - PT2

The key factor when taking profits is balancing risk/with having enough money left in to compound & make big gains.

You always need to balance Risk & Reward

10/ TAKING PROFITS - PT3

First i tried taking out 50% profit for every 100% gain against the original price

Whilst this approach lets you take back initial investment when price goes up 100%, there isn't enough money left in to get bigger gains.

11/ TAKING PROFITS - PT4

Second i tried taking out 20% profit every 100% gain against the original price.

The issue here is you have to wait for a 200% 🔼 to get near taking out your initial investment out & you have less accumulated gains at a 400%

Worst of both worlds.

12/ TAKING PROFTS - PT5

The ideal ratio i found was taking out 20% every 50% gain. Because:
-You get initial investment out by 150%
-You still have a decent amount of profits accumulating
-AND you have a decent amount of money left compounding if it moons.

12/ TAKING PROFITS - PT6
This is approach is flexible too:
-If its a #memecoin you can take out profits every 50% growth
-If it has good fundamentals, de-risk (take out initial investment) and let it ride high for big gains

BTW i dont buy buy meme coins.
But up to you.

13/ STACKING BLUE CHIPS
Once i take profits i always try and stack #bitcoin , #eth , #sol & #matic in the proportions/percentages i shared earlier.

14/ STACKING BLUE CHIPS - 2

When it comes to buying bluechips I NEVER try and time the market.

Instead i DCA (Dollar cost average). Setting a set amount of money aside to buy each month.

Taking a long term view (years not months) DCA almost always beats timing the market.

15/ #bitcoin DCA ON STERIOIDS - 1

When it comes to #bitcoin i also like to use a number of indicators to inform my buying each month.

I may increase/decrease the relative amount depending on the indicators in this thread.

16/ #bitcoin on DCA STERIOIDS - 2

Beyond these indicators, i cut out a lot of #cryptotwitter noise and listen to the best people around:

Give this lot a follow below:

@TechDev_52
@TheRealPlanC
@OnChainCollege
@CryptoYurii
@MatthewHyland_

17/ THANKYOU

If you like this thread please go back to the first post Retweet it, share & follow along.

It take a long time to write these, so appreciate the support.

You may also like my other threads here 👇👇👇

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