In earlier articles I mentioned that the targets are the most important part of a trade, because this is where we make/take our profits. Since we are day traders and we are here to make money, taking profits is a huge deal.
The targets are not set in stone. Some trades will reach a target and continue all the way up, others will come short and the price will reach just below the target level. Also, keep in mind that not all targets are meant to be reached, these are reference points and resistance levels that we can use in order to make money.
Before I give you this strategy, to sell the targets, consider this little and useful tip. When you want to sell a big amount of your stack, your coins, your purchase for any particular trade, you can secure this sell by placing your order 5-10% below the target level. Meaning, that if the target for a trade is set at 1000, this target aims for a 200% total gain, you can set your sell order at around 900-950, this way you are sure to have your order filled.
On the other side of this coin, targets are also broken most of the time and the price goes higher before the usual “retrace” and later on consolidation. This retrace I just mentioned is a normal aspect of trading, when a target (resistance level) is reached and broken, there is normally a fall back in price. The price goes back to the closest support level, consolidates and then the next run starts.
For this strategy for Selling the Targets, we are going to do something called, “Selling Little by Little”, this is a good strategy for long term trades, and those that do not want to spend time on their computers or smart phones. Here is how it works:
Selling the Targets (Part 2) – Little by Little
- First choose at which level you want to start selling your coins. Each trade will have multiple targets. The first target can be 50% higher than the buy in price as it can be 100% higher or any other percentage, this will be based on the charts and coins trading history. Let’s say you want to start selling right after the first target is reached, little by little.
- On the first target you can choose to sell 10% of your coins. That is, if you bought 1,000 coins for any given trade, you sell 100 on this target. You will be left with 900 coins, or 90% of you stack.
- Right now you already secured some profits and you are ready to move on. You can also do 15%, that is completely up to you. For the next target you can sell another 20% for example, you are selling your coins little by little. At this point, you are really far away from your buy in price, the stop loss becomes useless and even when a correction comes (price goes down hard) you are always in profit, since you managed to hold and stay calm. So here you sell another 30% of your stack and wait, wait for the next target to come.
- On the next target, which now can be in the ranges of 300% potential profits; Yes I know its crazy profits, but this is the cryptocurrency market, the stock market for the people, the market of the future. Here you let go 30% at least or more of your coins once more.
- You keep on repeating this until you’ve sold all of your coins. Once you’ve sold your coins, there is no going back, there is no need to look at the charts and focus your energy on this coin anymore. This is the time to say thank you, take your profits and move on. We are day traders, once we reach our goals, we close.
As usual, this is a very simple strategy and all sells can be set up right the minute you buy in. So you can literally buy in your coins, set up your automatic sell orders on target and move on. Set it and forget, and later come back in a few days, weeks or months and take all of your profits.
You can also choose to change strategy at any given time. When in profits, you can choose to sell your coins as well and move to another trade. Waiting is gold. Patience is key, for real big gains but, you are a human being, a loved one at that, so if you want to change to a new trade, newer more exciting, feel free to do just that.
Try to stick to the strategy of your choice. You can choose a different strategy for each and every different trade. You can also, always, choose to hold your coins, sit back, relax and wait.
There are so many ways to become successful in a single trade. The most important is the initial part, when you buy, you wait. Just a few days will be enough to keep you ahead of the game, because the price will go up, and no matter what happens after that, you will become a winner on this specific trade.