Survey: How do you decide it’s time to take profits?
I've been thinking about this question for a while, and since the market's been going up, it's a good time to ask.
How do you decide when to take profits?
For example, do you just eyeball it, or did you make rules for yourself in advance? Do you set up automatic sell orders for when certain prices are reached?
I've got rules right now, but they're bad, and I want to revise them. When I first started trading crypto in February of this year (I was trying to take advantage of the crash), I decided that I didn't intend to sell anything this year, but I wanted to make some rules just in case the market went crazy:
Price goes up 10x: Sell 25% of original stack. Example: I buy $10 worth of a coin. Price goes from $0.10 to $1. Now I have $100. Sell $25. $75 in holdings remains Price goes up another 10x (i.e., 100x from the original purchase price): sell 50% of current holdings. Example: Price goes from $1 to $10. I now hold $750. Sell $375. $375 in holdings remains. Price goes up another 10x (i.e., 1000x from the original purchase price): Sell 75% of current holdings. Example: Price goes from $10 to $100. I now hold $3,750 of a coin. Sell $2,812.50. $937.50 remains. Price does anything else: Hold.
As you can see, these rules are absurdly optimistic, possibly to the point of uselessness. So, now I'm looking to revise them–hence this survey. Thanks for your replies!
Note: I have made a similar post on a different sub today, but it's getting downvoted into oblivion, and I wanted to hopefully get some more useful answers.