The Profit Problem: Why You Never Cash Out Your Crypto Profits
Let’s Get Straight To The Point
You won’t like it, but we don’t sugarcoat stuff here at Innovation.
You’re greedy, and it’s killing you.
Emotionally and financially.
Have you not realised this yet? The key to solving most of your problems in crypto stems from the fact that you do not take enough, or any, profits whatsoever. But the power to change this is in your hands. By adopting better profit-taking strategies, you can take control of your trading journey.
If you find yourself only winning in the crypto bull markets and losing in the bear markets, with nothing to show for your hard work and effort, you’re not alone. This is a struggle that over 90% of traders face. But there's hope, and we’re here to guide you through it.
Lessons From Surviving Every Bear Market
We have survived every bear market, year after year, since 2017. Publicised for all to see. What we make during the crypto bull runs is what we have left in our pockets during the excruciatingly painful crypto bear markets. This is what has enabled us to buy the bottom of every bear market and multiply our investments tenfold with each new cycle, during a time when most traders are left facing depression as the numbers in their portfolios turn red and negative. All that’s left are screenshots on their phones of mind-staggering money they once had at the height of the bull run, causing deep trauma whenever they look back and realise they gave it all away.
You never truly appreciate what you have in the moment, especially at the height of the bull run, because it’s all happening so fast. Everything you touch seems to turn to gold. The numbers in your portfolio are multiplying rapidly as each new bullish green candle gets printed. You’re lost in your delusional fantasies. You lose all touch with reality, and nothing feels real. You’re experiencing surges of euphoria, yet crippling numbness to the reality of the money you have at the same time. The dopamine is rushing through your veins.
“How much higher can this go?” You tell yourself.
“Imagine how much more I’ll have”, you say to yourself.
“When I hit this number, I’ll sell”, you convince yourself.
But you never do, do you?
Your dream price target never seems to get met. Or in many cases, you reach it and convince yourself you now need even more.
I mean, I don’t blame you. Around that same time, a glimmer of rationality crosses you, and everyone around is saying it’s all going so much higher. If everyone’s saying it, it must be true, right?
Then it all comes crashing down.
The Trap Of Buying The Dip
Oh, but you still keep holding.
“It’s just a dip”, you tell yourself. Your favourite crypto influencers convinced you of the same thing. You buy even more. You tell yourself you're DCA'ing for cheaper. ‘Buying the dip’ is a strategy where you purchase an asset when its price is lower than its recent high, with the expectation that it will increase in value. “It’s on discount”, you tell yourself. You’re so caught up in the whirlwind of it all that you repeat this all the way down, until suddenly reality slaps you in the face and you realise you’ve done the unthinkable. You’ve not only lost everything you once had, you’ve unwillingly been so blinded and drunk off your own emotions that you’ve ended up buying at prices you may not see for quite some time, if ever, drastically multiplying your losses in the process.
This is the harsh reality for every crypto trader. Unfortunately, most never learn. By the time the next bull run comes, they’re back at it again. Buying the whole way up, barely back at breakeven halfway through a bull market. When prices finally return to their previous bull market buys, they go ahead and buy even more, worsening their situation unknowingly until it’s too late to realise again.
My Costly Mistake From 2017
I made this costly mistake following the 2017 bull run. I bought Ethereum for just $6, slowly averaging my buys up towards approximately $26-$27. I made millions in the 2017 crypto bull run. I extracted millions of Dollars in profit during the 2017 crypto bull run, but I still did not sell enough. The result? Millions also lost due to sheer greed and stupidity. Whilst I still consider myself fortunate enough to have made the wise decision of selling, I simultaneously felt a crippling pain in my stomach at the thought of what was still left running in the hands of a market I soon realised couldn’t care less for my hopes, dreams and desires. This moment changed me forever. I lost sleep over it, and I couldn’t get over what I had done. I had left the market a winner, yet the profit I watched evaporate was still burning me inside.
From that moment, everything changed for me.
Taking Responsibility For Losses
I did what most crypto traders never do. I took responsibility for my actions. I didn’t blame the market or the launch of the BTC CME Futures in 2017 for my losses. I blamed myself, as it was entirely the fault of my deeply-rooted greed and hunger for more. What I did not realise then was that the pursuit of more in the markets was the golden ticket to less in crypto.
I hit the drawing board, refined my strategy, and developed a formula to ensure such a horrific loss never happens again. Since that moment, I have never blown an account or obliterated my portfolio. I have kept all my profits and grown them more with each cycle. It will remain this way forever. One of the core components taught at Innovation Markets is crypto profit-taking and the psychology behind it, which stems from my loss that helped me fine-tune the strategy and system.
Our most significant losses are the biggest blessings in disguise. They teach us valuable lessons that we wouldn't have learned otherwise. It’s not always easy to see this in the moment, but when we understand what our losses are teaching us, we can grow and improve.
Ego: The Greatest Enemy
Almost all traders will face this moment at some point in their career. They will blow an account, get wiped out in a single liquidation, or go all-in on a coin and hold it to the very ground. We have a choice to make in this moment. Blame ourselves, or blame everything but ourselves for what happened. The ego is our greatest enemy and one of the strongest driving forces that blocks us from succeeding in the market. We want to point fingers and play the blame game; we never want to take fault or ownership for our fatal decisions in the market. Yet the reality is that it’s all us; it’s entirely our fault. All successful traders have faced this critical moment. Those who dare to take responsibility and learn from their losses succeed and reach the next level. Unfortunately, they often do the opposite and continue repeating the same mistakes until they eventually give up.
Appreciating The Value Of Money
Money is valuable, no matter how quickly it’s earned. This is something we never truly appreciate and comprehend until it’s lost. It’s earned incredibly easily in the crypto market compared to traditional markets, especially during the mania of bull runs. Yet the money is just as easily lost in the process.
What most fail to realise is that timing markets during bull runs is not easy, and it’s unlikely you’re ever going to perfectly time the top, let alone know where price will precisely peak when it’s in fresh all-time high territory. Whilst our strategy and what we teach can significantly help find that top and put the odds in your favour, it’s never a 100% formula. That’s me being honest—something you don’t often see in the cryptocurrency sector. Finding bottoms is significantly easier and more precise, which is why we’ve captured every single bear market peak and low. The lower you buy, the less upside you need to make life-changing money. This is what I specialise in.
The Secret To Taking Profits
There’s a secret to taking profits in the crypto market. It comes down to not being greedy. The likelihood is that your dream price target will not be met. The second likelihood is you won’t sell when it’s met anyway. The faster the price goes upwards, the more you lose touch with reality.
Here’s the good news: you don’t need to time the top perfectly. You need to be brave enough to push the sell button several times. There’s a formula for this. I would highly recommend reading the Profit-Taking Guide within the digital trading ebook library section of our app to understand how easy it is.
Most of the crypto influencers you see flaunting profits during bull markets do not retain those profits in bear markets.
When you look back at the money you once had during the bull market, don’t you wish you had just taken it? Don’t you feel you would have been better off with that money in your possession right now? Don’t you feel now that what you once thought wasn’t enough was actually a lot?
Never lose touch with reality; that’s where psychology becomes your most excellent tool in the market.
What you don’t realise yet is that it’s far better to take something instead of nothing. To survive every cycle, you must be willing to hit the sell button. We psychologically find pushing the sell button harder than the shiny green buy button; that’s human nature at work. You will survive every bear market if you take what the bull market gives you, even if not in its entirety. I learnt that the hard way. When all is said and done, the only winners are those who were brave enough to face their greed head-on and extract profits. Perfecting your entries will significantly improve your ability to do this.