The /biz/ Guide To Taking Profit

[Anonymous No.21922693]

Taking profits is good. In this thread I'll show you how to do it and why.

WHY?

Profit taking lets you remove the emotions from trading. Anyone who was around for 2017 knows this. It's easy to look at the BTC chart and think "if only I'd bought the bottom and sold the top." In reality, very few did. The vast majority of traders bought and sold sporadically. They didn't set any concrete goals (other than "make it" or "pay off that mortgage”) and reacted emotionally when their portfolio went up and down. This is why you hear so many stories of anons losing everything or breaking even and so few stories of people becoming crypto millionaires.

Profit taking acts as a hedge against this. This happens for two reasons:
1) Rewards for personal milestones. If you just sit there watching your portfolio blow up, you're going to get greedy or fearful based on how the market's doing each day. If you take profits at pre-decided intervals, you'll have smaller cash out events to look forward to and tide you over before the big one.
2) Risk management. With a good profit taking plan, you'll minimize or eliminate losses by retracting your initial investment before your first 10x, and make sure you have at least doubled or quadrupled your liquid gains in the event that you completely fuck up timing a market peak.

In the next post, I’ll explain how to take profits the right way.

[Anonymous No.21922698]

>>21922693
HOW?

People have varying philosophies on this, but I think there really is one best way.

It's called the /biz/ Success Algorithm:
** Take out 8% of your entire portfolio each time it doubles. **

To illustrate how this works, let's say you put in an initial deposit of $10,000.

After your first 2x ($20,000) you'd take out $2,000.
After your second 2x ($36,000) you'd take out $3,000.
After your third 2x ($66,000) you'd take out $5,000.
After your fourth 2x ($122,000) you'd take out $10,000.
After your fifth 2x ($224,000), you'd take out $18,000.

(Note that I'm rounding all numbers above to the nearest thousand - you should be doing this too, psychological numbers makes rewards feel more tangible and you'll never be timing the market at 100% exact intervals anyway.)

So now, assuming you're lucky enough to have made five 2xes in a row (which is not unimaginable in a GBR), you've got $38,000 in the bank and $206,000 in crypto.
That means in the absolute worst case scenario (LINK goes to zero), you've tripled your money.
In the "best" case scenario, assuming you decide you want to pull out now, you've made just ~25% less after tax than you would have if you didn't take profits.

Along the way, you’ll have made sensible liquidations at each 2x event:

- one fifth of your initial deposit
- half of your initial deposit
- 100% of your initial deposit
- 2x profit
- ~3x profit

Another nice thing about this method is that it scales. It works equally well if you’re investing $100 or $100,000.
Plus the post-tax loss (vs. if you had never taken profits) scales up reasonably with 2x events: if you chicken out and withdrawal everything after a 10x, you'll have only made ~10% less than if you hadn’t taken profits. Whereas if you’re lucky enough to experience seven 2xes, you’ll have made ~35% less - but you will have more than 50xed your post-tax earnings, so who cares?

I'll be sticking around for a bit to take questions and give advice. Good luck anons.

[Anonymous No.21922986]

Thoughtful and informative thread, OP. I just have one problem: I have this rare hereditary condition where I am absolutely never ever ever fucking selling.

[Anonymous No.21923020]

>>21922986
epigggg :DDDD

>>21922693
are you cryptozyzz?
anyways good thread.

[Anonymous No.21923175]

>>21922693
You can do even better than this.
You can take the profits virtually without cashing out if all you want is to feel good.
Each time a new milestone is reached you go back to your bank to take a new loan to invest in something else to diversify yourself.
This way you keep your life changing investment and can feel good about your new invested money with the loans you took now that you have enough money to cover them.
It's also a way to use your link stack as a virtual collateral because the bank doesn't know about it and can't take it away from you, but you don't feel any stress when taking more debt to reinvest because it's only a small fraction of your money.
Of course this loaned money has to be reinvested in different assets with a higher positive return probability a less risks than cryptos.

[Anonymous No.21923215]

i'm going to follow your advice anon. i lost $500k in 2017

[Anonymous No.21923240]

>>21922986
Kek, based ranjeesh

[Anonymous No.21923243]

>>21923175
your link isn't a good cover, it can dump 5$ any day if bitcoin decides to nuke 2k, what will you do then? and how will you make sure you have enough money to cover the loans? you will have to put stop losses at a decent point to be able to withdraw the money to cover your loans. which means your link isn't necessarily safe from being sold in your method.

[Anonymous No.21924337]

>>21923243
That's why I said the bank doesn't know about my stack.
I got the loan based on my normal income without crypto.
I can repay it by working if I have to.
Investing it in less dangerous assets reduces the risk of losing everything with a bit of wealth management knowledge.
It's a form of margin trading when you use a margin to diversify yourself in less risky assets, but you don't risk getting your assets taken as a collateral.
In my case I use my silver holdings as my virtual collateral and they can cover the complete loan, because I didn't take out an insane loan, just a healthy amount to keep my mind focused on investing.
I can repay the loan with my Link stack even if it goes down to $0.3.

Obviously you should wait a bit if you just bought your Link stack.
This is more like a long term investment strategy.
You should not try to virtually cash out after a few months of holding.
You need to be patient.

[Anonymous No.21924405]

fuck you OP, im holding RSR till the real moon. im up so much because i havent been taking profits. kys faggot.

[Anonymous No.21924676]

>>21923243
The only limitation of this method is the amount you can get loaned which reduces it to smaller sums of money compared to cashing out millions.
But it should delay your need to cash out meaningless amounts that you can earn by working for a few years, while also reducing your dependency on your Link stack because you hold something else with some value you got as a consequence of holding it.

[Anonymous No.21925143]

This is great advice. Thank you OP.

[Anonymous No.21925180]

>>21922693
good thread

[Anonymous No.21925188]

>>21923175
>Each time a new milestone is reached you go back to your bank to take a new loan to invest in something else to diversify yourself.
This is called over-leveraging yourself and is basically the opposite of profit taking.
>>21924405
I'm 50/50 LINK/RSR and am using this method. I didn't use this method in 2017 and just watched my alts bleed like everyone else.
You're up on paper. That lasts until it doesn't.

[Anonymous No.21925273]

>>21922693
Good thread op. Lots of really good info here.

Luckily for me I fall on the sociopath spectrum and have no real emotional connection to money or finances. It's just a game essentially, and I like beating people at stuff

[Anonymous No.21925561]

>>21922693
Good advice, thanks

>>21923175
This on the other hand seems like fucking terrible advice.

[Anonymous No.21925920]

What if you're really bad and the most ROI you get is 1.1-1.5x?

[Anonymous No.21926022]

>>21925920
I'm confused by what you're asking here. You mean like if your ROI after taking profit with this method is 1.1-1.5x?
One way this could happen would be if you make a 9-10x but then the market crashes there and you just watch your portfolio go down to zero.
The thing is that yeah, you won't make a great ROI in that case. But you wouldn't have done so if you DIDN'T take profit either, plus you would have lost money.

[Anonymous No.21926710]

>>21922693
>>21922698
Based. What do you think of pic related? Good advice or bullshit?

[Anonymous No.21927421]

>>21926710
Intuitively this seems correct to me. Like if you look at a log graph of BTC and subjectively compare to market sentiment at that time, it more or less "seems" right.
The thing is that I remember people who had been around in 2013 making these types of predictions in 2017 too. But no one predicted "the majority of the growth will take place in Nov-Dec, and the market will quickly collapse in early January". Instead people were posting "BTC Christmas discount!" and "just wait until Wall St traders pump our stocks with their bonus!" And no one could quite tell that the peak was the peak, because at that point we were used to their portfolio losing 20-30% value overnight only to hit another ATH within days.
So even if this is true, it's true in a very general sense, and you should still be taking profit.

[Anonymous No.21927543]

>>21926022
Your plan seems good but what if someone is a bad investor who rarely makes a 2x in general?

[Anonymous No.21927635]

you will not profit from rsr

[Anonymous No.21928235]

>>21927543
This plan shifts from helping hedge against losses to locking in profit after the third 2x or so. It's perfectly suited to both good AND bad investors. I'll illustrate this with two examples.
Example #1: Say you put in $10,000 and your portfolio does two 2xes. If you cash out ASAP, your post-tax difference is about 5% less than if you hadn't taken profit. That's basically nothing. If you don't cash out and Sergey pulls a Bitconnect, well, at least you cashed out $5,000, so you only lost half your money.
Example #2: Let's say you put that $10,000 into some shitcoin that turns out to be the next Ripple. Let's say, like Ripple, it does about ten 2xes from the time you buy it to the time the market peaks. By the tenth 10x you've cashed out $825,000 before tax. Whatever your thoughts are on "making it," that is a fuckton of money compared to your initial investment.
Here's where things get interesting: If you time the market PERFECTLY and cash out the rest now, you've made $3,255,210 after tax. That's theoretically 50% less than you would have made before taking profit. But this is purely theoretical because NO ONE actually made a 1024x on Ripple - look at the graph and tell me you could have timed that perfectly. Keep this in mind any time someone tells you they're "holding till the real moon" and "up so much" like >>21924405.
The lesson here is that whether you suck at investing or great at it, taking profits will help you.

[Anonymous No.21928955]

taking profit is the biggest fucking meme. it’s a great way to not be poor and it’s a great way to never be rich.
the only acceptable reasons for taking profit is if you think a correction is coming or there’s another opportunity you want to invest in, or if you’re such a weakminded weakhanded faggot that it’s literally causing you to lose sleep.
you should never take profit because “i’m up 100x!!” that’s a sunk cost fallacy. the market doesn’t give a shit how much you’re up it’s going to move how it wants. the only thing to consider is if you think it goes up or down from this point in time.
if you’re focused on how much you’re Up it means you probably don’t understand your investment and shouldn’t have invested in the first place.
AMZN’s road to 3k was paved with bodies of people who took their 2x and left because they didn’t understand what it was. same with eth, btc, etc.
all life is making bets and the size of your bet should correlate with your conviction. if you believe in your investment you shouldn’t be reducing the size of your bet. don’t take profit until it’s achieved what you think it should.

[Anonymous No.21929089]

Good thread with valuable insights, but next time post this together with some soft transsexual pornography (as per the culture of the community) please

[Anonymous No.21929388]

>>21929089
jesus christ no. it is not the culture of the community, its the culture of some faggot discord.

[Anonymous No.21929474]

>cashing out into fiat

[Anonymous No.21929510]

>>21928955
This so much, I first bought btc under $50, sold after a 4X and moved on.
I WOULD BE A FUCKING MULTI-MILLIONAIRE!!!!!!

[Anonymous No.21929644]

>>21922693
>le emotional trader meme
no matter what you do you're trading based on emotions.
maybe you've created a nice charming narrative that soothes your emotions, but it's still emotions.

[Anonymous No.21929789]

>>21925188
lol you are right but the new people who are coming in off this DeFi rush and didn't experience 2017 will not listen. And frankly, I don't blame then. Its just one of those lessons you have to learn the hard way. I could have made out with 100k or at least still have it but when you get the rush, you dont let go. At the end of the day I'm grateful for the experience(maybe I'd be more bitter if I'd actually lost money).

Back in the game 3 years later and looking to win this time. To all my 4 year friends in the same boat....good luck gentlemen.

[Anonymous No.21929862]

>>21929474
>my imaginary coins will replace fiat one day just you wait!

[Anonymous No.21930276]

bought eth in 2016, iota in 2017.
had worth $2.5 million worth of them in mid dec. 2017.
reimbursed the loans taken and used to invest in crypto (~$40k), and lived well ever since, by shaving few per thousands of the total assets into fiat, regularly.
i now have less than $300k in crypto, all in iota.
this is fine.
i sleep on both ears.

[Anonymous No.21930334]

>>21927421
No one ever went broke taking profits. The theory is easy, but emotions always get in the way. Particularly for poorfags who only invest pocket change. It's easy to get careless when there's only a few bucks on the line, but that leads to a terrible mindset.

[Anonymous No.21930411]

>>21922693
My dearest friend, 'tis with immense pleasure that I inform you that your letter has found safe travel to my destination and landed in my hands. However, this pleasure was fated to remain short lived and bittersweet, for I must also admit to you, regardless of what distress it may cause to you, knowing you went to great trouble to pen it and deliver it to me, that I in fact declined to open it and refused to read the message contained within. Surmising your intentions, there exists no doubt in my heart regarding your sincere worries for my financial well being, but alas your attempts to convince me to modify my investment strategies shall regretfully remain futile, as my stubbornness in this matter has indeed been sealed irrevocably and no other voice shall rock its imperturbable foundations. Allow me then to reiterate my will once more, and do your best to forever remember it for no change will follow: I shan't part ways with my beloved asset for it is my utmost belief that I have invested wisely and foresee infinite potential in its future, and therefore no other possession in this world shall change my decision, not even a mountain of gold! For my possessed asset is indeed fated to be worth more than any other riches in the world. We shan't speak of this no more. Sincerely yours, your beloved friend.

[Anonymous No.21930769]

>>21930411
You're getting a you for that.

[Anonymous No.21931039]

>>21922698
what the fuck am I supposed to do with 38k? that's maybe a down payment on a decent double wide trailer, that's not even close to worth it considering all the bullshit you have to go through with asshole people and there are ALWAYS extra fees everywhere. I also think you're massively underestimating taxes.

[Anonymous No.21931352]

>>21930769
Newfag

[Anonymous No.21931384]

>>21926710
So when will BTC reach the next ATH? 2021?

[Anonymous No.21931499]

>>21922693
Good read. I do something similar to this but with more conservative goals.

Up 20% sell 20%
Every double dip put half your fiat back in.

A decent low risk way to try and time the market while growing your portfolio.

[Anonymous No.21931603]

>>21923175
This is fucking retarded advice. You aren't "taking profits virtually" by not taking any profits and just getting more in debt you fucking moron. Do not listen to this fool.

[Anonymous No.21931714]

>>21923215
I can still hear the screaming
oh god....

[Anonymous No.21931860]

>>21925188
> This is called over-leveraging yourself and is basically the opposite of profit taking.
It is not. It is basically free money. Worst case you declare bankruptcy and cash out through your relatives‘ accounts.
No one can take your crypto. If you take gorillions in loans and buy crypto with the money, the bank can’t do shit.

[Anonymous No.21932139]

>>21929862
unironically this. Haven't you been paying attention for the past 12 years? Why do you think they are doing unlimited QE? You think they don't have a plan on the other end of that mess? fiat is on its way out, don't be caught holding the heavy bags.

[Anonymous No.21932243]

>>21922693
great thread, this is how I like to take profits on long hodls

[Anonymous No.21932269]

>>21931039
>what the fuck am I supposed to do with 38k? that's maybe a down payment on a decent double wide trailer
If that's not enough for you then hold for another round. If you cash out ASAP you'll have 25% less than if you didn't take take profit in the first place. That's ~$154,000. You can make down payments on several decent double wide trailers with that money.
This is all of course assuming you don't have iron hands and aren't holding for over a year. It's true you can make even more money by waiting 1+ year to take profit, but you can still backfill using this method and optimize for a GBR. 22% in theoretical tax gains doesn't mean much when you're trying to time the peak of a market that can go well below that amount in a single day.
>I also think you're massively underestimating taxes.
I'm actually overestimating taxes in some of these estimates, because I'm basing them around the worst case of upper bracket short term US capital gains tax.
>>21929510
>This so much, I first bought btc under $50, sold after a 4X and moved on. I WOULD BE A FUCKING MULTI-MILLIONAIRE!!!!!!
You didn't take profit. You withdrew your portfolio after a 4x. You would still have well over a million dollars after tax if you had taken profits using this method from $50 up to the peak of the 2017 bull market. You would have also been less likely to have pulled out after a 4x, because your initial would have been gone early and you'd be playing with house money.

[Anonymous No.21932278]

Very good thread OP. It's a shame to see how many fools truly are in the "never selling" mindset. I guess they have no financial stability (like a decent paying job) in their lives and believe that they have one chance to well and truly make it. I was buying link up to 13$ and selling at $20. If it went to 0$ after Sergays live big mac eating contest, I wouldn't bat an eyelash.

Their hubris will be their downfall.

[Anonymous No.21932376]

>>21932278
>has decent paying job
>needs to feel superior on anonymous image boards

[Anonymous No.21932409]

>>21929510
>bot $50
>sold entire position at $200
>never re-entered

what an idiot

[Anonymous No.21932549]

>>21922698
Good stuff man. I'll try it. gl to all excepts shorts

[Anonymous No.21932577]

>>21932376
If you make something for a living, your life doesn't feel so hollow.

[Anonymous No.21932732]

>>21929862
YOU HAVE TO BE BATSHIT RETARDED TO GAMBLE ON CRYPTO FOR FIAT PROFITS WHEN THERES SO MANY BETTER WAYS TO MAKE MONEY THESE DAYS
ESPECIALLY IF YOURE AMERIBURGER

[Anonymous No.21933053]

>>21932732
like?

[Anonymous No.21933143]

>>21922693
It's nice when people take the time to post sensible advice and try to help people, thank you anon I hope at least a few people will listen to you

[Anonymous No.21933553]

>>21922693
DR;NS, YOU HEAR ME?
IF IT GOES TO 1 CENT, I AM NOT SELLING.
IF IT GOES TO $1000 I AM NOT SELLING.

[Anonymous No.21933556]

>>21930411
My friend, Your last letter saddened me. I want you to know that I have only your best intentions in mind, cognizant as I am of the myriad pitfalls and vagaries of the financial world and the strange age we live in. I must again exhort you towards caution in these matters, untutored as you are in such matters. It is a world brimming with knaves and cut-throats, and the rankest filth of the darkest places of the world will attempt to mislead you with false promises and calls of camaraderie. I admit, for my part, I may have misled you with my tales of wealth and inexhaustible profit, and I fear that the gentleness of my own disposition has perhaps convinced you of a weakness in me, rather than a simple fondness for you. Again, friend, leave aside these matters and take what paltry profit you can when it is timely. Do not put such faith in these colonial types and the ephemeral highs of their worthless currencies. Put aside some small portion of your wealth into the staid yet true institutions of civilised man. I await your reply, my dear friend.

[Anonymous No.21933700]

QUESTION: How do you deal with selling your entire bag and then seeing the price go even higher?

[Anonymous No.21933900]

>>21933700
just sell half of ur stack if you still believe in the project

[Anonymous No.21933973]

>>21922698
Thanks, I'm a greedy piece of shit and I often pay for it.

[Anonymous No.21934018]

>>21925273
Kek same, idk how people can’t grasp this game, my latest metamask transaction was #766, all done on Uniswap and IDEX before that and never got scammed, never got rugpulled and never made substantial losses. Feels great knowing you’re top of the game. I trade purely on sentiments, I see a project losing momentum, I exit right then and there.

[Anonymous No.21934248]

>>21934018
What are your key sentiment indicators? I've been doing the same lately and it's quite effective. It's amazing what you can pick up just by sitting in a TG, but I'm curious as to whether or not you have other indicators.

[Anonymous No.21934352]

>>21930334

> Particularly for poorfags who only invest pocket change.

au contraire it’s the /biz/raeli NEETS with 6 figures who will not take profits and I am amongst them.
Does $700k change my life? Nope, I live a comfy life and $700k makes no dent in my current situation, my arrangements will be the same.

But, $8M+ and Now we’re talking. I can make substantial changes to my life.
That’s why most of us OGs hold LINK, and still do. Wagies and poorfags and everyone has already sold their bags, but the NEETs didn’t.

Honestly the NEETs here have money figured out, I never actually chased making money, because whenever I wanted, I just got it.

Before crypto I did Shopify, made around $244k after cogs in a few months, before that I did freelance programming and whenever I wanted money I got clients easily.

It’s usually the dumb and poor who chase the quick money and usually get rekt or become liquidity providers for the smart money.

[Anonymous No.21934397]

>>21934248
Literally what you said lol, telegram. The best indicator of shitcoin losing momentum there is.

[Anonymous No.21934566]

>>21922693
Nice, but your math is weird. You calculate every 2x subsequently after the last one. You should do the math for every 2x relative to the initial investment.

[Anonymous No.21934666]

>>21934397
What are some examples of losing momentum? If you may.

[Anonymous No.21934727]

>>21932577
agreed, I dedicated 16 years trying to learn how to make things and all I got was heavily bullied and drug addictions. if you want people to make things you have to give them the opportunity.

tldr fuck you you emotionally and life spoiled piece of shit

[Anonymous No.21934784]

>>21922693
Sensible advice but poorfag trading mentality desu
Im just allin link since 207 because its all fuck you money to me anyway, but at ANY TIME if crypto memecoin represents real value added to your life and its "to much money" you should listen to OP

>>21934018
Everyone is genius in bullmarket and thinks his way is best because we all made at least 10x last few m.
In bear only allin link marines did best play

[Anonymous No.21934983]

>>21933556
:D

[Anonymous No.21935376]

>>21926710
Bitcoin usually pops on the eve of an event. It’s a classic buy the rumor sell the news scenario. Here’s how to get an extra 5x:
>Another Wallstreet bonuses, Chinese New Year, bank run.etc
Create shill accounts across Reddit and all social media sites causing normies to fomo with larp portfolio accounts days prior.
Dump on the eve of the event. Normies will continue to fomo in mass well after

[Anonymous No.21935495]

>>21922693
Profits are the unpaid wages of the working class.

[Anonymous No.21935832]

nice thread, anons.

[Anonymous No.21936062]

>>21932732
such as? can I pay my mortgage without fiat? can I buy more ammo without fiat? go ahead and show me faggot
>inb4 buy ammo with your gold and silver

[Anonymous No.21936110]

>>21922693
This is the thread that /biz/ needed, but not the one it deserves.

[Anonymous No.21936126]

I have 2600 LINK. If we get a nice pump from smartcon, I want to sell 1000 and move it into stocks.

[Anonymous No.21936149]

>>21932732
There is nothing like crypto. The people who owned chainlink 2 years ago at .20 made 100x profit in just 2 years. Nothing comes close to the profits crypto makes.

[Anonymous No.21936181]

>>21922693
profits are for chumps

[Anonymous No.21936494]

Need to make money first lol

But thanks OP

[Anonymous No.21936579]

>1k XRP
>1k XLM
>20 OMG
>20 LINK

Is this a good investment? Im a poorfag newfag

[Anonymous No.21936641]

>>21922986
Based

>>21922698
Cringe

[Anonymous No.21936669]

>>21936579
Go all in on link and xcm

[Anonymous No.21936719]

>>21936149
Its still only a step up from a slot machine you idiot. For one coin that grants a 100x profit, a thousand financially ruin others.

[Anonymous No.21937270]

[Anonymous No.21937409]

>>21936579
trade OMG for more link/xrp

[Anonymous No.21937547]

>>21936719
What do you not cut losses? If Crypto is so bad tell me the best way to make money then.

[Anonymous No.21937648]

>>21936719
Yes but you literally had to be sub 90 iq to be informed about it but miss that one idiot.

Idea crypto is crapshooting because there is 23424234 of them out there is niger tire

[Anonymous No.21937714]

Most retarded OP for ages. /biz/ IQ has gone down the drain if such a shitty thread survives so long

[Anonymous No.21938252]

>>21937714
You're a shitty /biz/ IQ thread that lasts for so long retarded OP for ages, faggot

[Anonymous No.21938285]

>>21922986
Same
Why the fuck would I take out even $20k, I want to retire, not buy a used car.