The Art of Taking Profits
Knowing when to sell is just as important as knowing when to buy.
Most traders either sell too early and miss the move, or hold too long and give it all back. Both mistakes come from the same place: no plan.
Profit taking is a process, not a guess.
Scale out, don't dump
Trying to sell the exact top is a losing game. Instead, sell in pieces as it moves up.
A basic framework that works for most trades:
At 2x: Sell 25-50% (recover initial + some profit)
At 3-5x: Sell another 25%
Let the rest ride with a mental stop
This way you're never all-in and never all-out. You lock in gains while keeping exposure to further upside.
Instead of fixed targets, sell based on what you're seeing:
Sell into strength (green candles, volume spikes)
Hold through healthy consolidation
Trim harder when volume starts fading
This takes more attention but often gets better exits than arbitrary numbers.
For narrative plays, you can also sell based on how long the attention has lasted:
Day 1-2: Let it run if strength holds
Day 3-5: Start trimming regardless of price
Day 7+: Should be mostly out unless it's clearly evolving into something bigger
Most memecoin attention cycles are short. Don't assume yours is the exception.
Set targets before you buy
Decide your first sell level before you enter. Write it down if you need to.
This removes the stress of making decisions while you're watching green candles. You already know what you're going to do.
If you never plan where to sell, you're relying on hope instead of structure.
Know when momentum is fading
You can justify holding longer if you still see:
Real volume (not just small buys)
Community still active and posting
Attention growing or at least stable
When these start dropping off, it usually means interest is moving elsewhere. The chart might not show it yet, but the energy does.
Signs to watch:
Replies slowing down on tweets
Telegram/Discord going quiet
Volume declining over multiple hours
Price holding but no new buyers stepping in
Strong coins stay loud. Dead ones get quiet before they dump.
Don't marry your bags
You owe no loyalty to any coin.
If the narrative shifts, momentum dies, or something better shows up, trimming or exiting is often the right call. Staying in because you "believe in it" is how profits disappear.
This is the flip side of Holding bags forever. Same lesson, different angle. Cut what isn't working.
Practical execution
Going deeper
Most pros don't aim for perfect exits. They focus on consistent extraction over time. This shift in thinking is covered in: Why Consistency Feels Boring (But Works)
You'll never sell the exact top. You don't need to. The goal is to consistently leave with money.