Thread by @DaanCrypto

Take Profit Plan Thread 💰

Going to share something I think is quite imporant which is profit taking into fiat. Yes fiat.

"Daan you must be crazy we're going to $1M!".
Maybe we are, maybe we aren't.

I know one thing and that is that I will be locking in profits this time.

Even if taking profit means that I am "missing out" on gains which I could have gotten if I kept on holding everything.

I've personally took quite a bit of profit already during this cycle and will continue to do so.

Taking profits secures a stack to work with and start investing into other sectors or buy back into Crypto during a bear market, at whatever time that may be.

Having said that, i've composed a simple Google sheet which can help you determine a way of taking profits during this cycle.

Copy the sheet so you can make it your own and edit it. Let me explain further below.

docs.google.com/spreadsheets/d…

Seeing it's impossible to cash out the exact top unless you're a god, your best bet is usually to take out a certain percentage or amount of your portfolio at certain prices.

For this example I chose to do this at each $5K increment on $BTC.

Top left, in the orange box, you fill in your portfolio size.

You also fill in the percentage of profit you will be taking out at certain levels on $BTC. I took a $10K portfolio and a 20% profit taking example here.

I calculated the portfolio "growth" by using BTC's growth just to make it easier. Obviously this might differ if you hold any alts or make any trades. It's just to give some perspective of how your portfolio grows back if the market goes higher after taking some profit out.

What we can see is that using this strategy of 20% profit taking at each $5K increment on BTC, we will slowly build our portfolio down. Which is what you want to do during the later phases of bull markets after all. We take profit and then we buy in again in the bear market.

A 20% profit at each 5K on $BTC might be too aggressive for you. That's why it's important to see what fits you. This was just an example.

This sheet can help you compare your take profit strategy to your expectations of how high this bull market will go this cycle.

Are you certain BTC will reach $1M this cycle? Then you might want to take profits less often after bigger increments and take a smaller percentage each time.

Do you think we will top out at $100K or earlier? Then a more aggressive profit taking approach may fit you more.

On the right side of the sheet I did some quick calculations of what your net profit would be when using this strategy and compared it vs just holding it through.

Using this strategy until BTC reaches 100K would give you a net sum of $13.3K vs $16.66K if you would have just held. This means you've "lost out" on $3.33K in gains. BUT, meanwhile, you've secured 79% of that 13.3K already by the time we're at 100K.

For this example I would say it's definitely worth taking out the profits both for safety, since you never know when it tops out, but also for a peace of mind.

Play around a bit with the sheet and think about what you want to do. Have your plan laid out for you.

Good luck! 😄👍