When and how to take profits: the not-so-sexy thread
This won’t be the kind of post that gets clicks or hype, but it might be the one that actually saves you down the line. It’s not a doom take or a moonboy fantasy, is just something I’ve learned through experience and what I’ve seen play out repeatedly around me.
In my community, this question came up a lot, especially from younger traders and investors. The way I managed my portfolio last cycle didn’t just give me good returns, it gave me more freedom for my mental capital and that’s one of the most underrated things out there. That calm in the storm helped me make better, more rational decisions then and ever since.
So here’s the deal: let’s say you caught a monster trade be it early allocation, meme, whatever and now you’re looking at those magical “life-changing” gains. First off, they’re not gains until you lock them in. I don’t care what your PnL says, until you hit that withdraw button, it’s all just numbers on a screen.
And no, this is not a diamond hands competition. Get your head out of the fantasy land and into real capital management. I’ve had tens, maybe hundreds of DMs in the last 5 years from people who round-tripped six or even seven figures because they never took a dime out. Don’t be them.
Here’s the framework that worked for me:
Let’s say your monthly expenses are $5,000 (can be more can be less, take this as a benchmark). Take that number and cover two years of living costs, then add on 30% extra for inflation, unexpected situations, etc
That’s $5,000 x 24 = $120,000. Add 30% on top and you’re looking at $156,000.
That money? You bank it. No excuses. Move it to a separate expenses account, a cold wallet, somewhere it won’t get touched for anything else. That becomes your runway. You’ll use it to pay your monthly expenses and free your brain from survival mode.
For the usual hater suspects: this is not a “take profit now” post. I’m not saying we topped. I’m not calling anything on Bitcoin or the market.
This is just a grown-ass approach to crypto profits in a world where selling is seen as weakness and holding to zero is glorified like some badge of honor. Fuck that. You’re here to win long-term, not to gamble everything away for clout.
Get your foundation in place and the rest becomes 10x easier to navigate.
Retweet this, so others can get a balanced reminder when things turn hot again 🫡