Crypto Ups and Downs: Hard Lessons on Taking Profits and Cutting Losses

Looking at accounts jumping every hour, I realize one thing: knowing how to buy is just learning the craft; knowing how to sell is the true master. Last month, a follower sent me a screenshot: an initial capital of 3,000 USD had grown to over 13,000 USD in just one day thanks to catching the upward momentum of an altcoin. They asked if they should take profits. I advised taking partial profits to preserve gains. But they still wanted to hear a “will it go higher?”. In the end, a reversal candle suddenly dropped, and they couldn’t exit in time, leaving their account nearly at zero. Stories like these, I encounter too often. Greed causes people to miss the best exit points. Dark Moments: From Peak to Enlightenment During the previous bull run, my account once reached a very large number. Every day, looking at the balance, my only thought was: “one more move and I’ll withdraw.” But the market doesn’t operate according to anyone’s wishes. When the trend reverses, I hesitate. By the time I wake up, most of the gains have vanished. That feeling taught me a truth: winning or losing in crypto isn’t about how much you’ve earned, but how much you actually bring home. Many talk about “financial freedom,” but fail at the most basic thing: knowing when enough is enough to withdraw. Strict Discipline: Protect Your Gains Before Greed Takes Over After that setback, I set a non-negotiable rule: When the position increases significantly, withdraw at least 1/2 of the profit to safety.No justifications. No hesitation. No waiting for the “perfect top.” Because “enough” is a concept with no end. The important thing is that every trade has clear goals and exit points. Before the market forces you to stop, proactively lock in profits. Effective Profit-Taking and Stop-Loss Strategies Below are the methods I use to stay in the game:

1. Trailing Stop( When the price rises, move the stop-loss according to the 5 or 10-day moving average. This helps follow the trend but still allows an exit if the trend breaks.
2. Partial Profit-Taking Don’t sell everything at once. Achieve the first target: sell 1/3. For the remaining, set a trailing stop to lock in profits while keeping the opportunity to continue earning.
3. Combine with Technical Indicators Use RSI, Bollinger Bands to gauge market sentiment. When multiple warning signals appear simultaneously, it’s time to consider exiting.
4. With Leverage Trading Controlling leverage is vital for survival. Beginners shouldn’t exceed 5x and must set stop-loss orders. High leverage can amplify profits but also accelerate “account burn.” Psychological Management: The Key to Long-Term Survival Technical analysis is just surface; psychology is the root. The three most common traps: FOMO: fear of missing out, riding the hype. Revenge trading: losing and then entering big trades to “recover,” often losing more. Overconfidence: winning a few trades and thinking you’re a genius, then risking recklessly. I remind myself every day: don’t dream, be realistic. The market isn’t wrong; only our plans need adjustment. Conclusion: Survive First, Prosper Later The first lesson crypto teaches me is: as long as you have capital, there’s still a chance. Don’t regret missed profits; focus on protecting your capital and existing gains. Plan your trades before entering. Define clear goals – stop-loss – take profit. Discipline yourself to the end. Opportunities always exist, but once your capital runs out, you leave the game. Let each decision bring you closer to resilience – because in crypto, long-term players are the winners.