Definition
Take-Profit — a pre-set order that automatically sells an asset when the price reaches a target profit level.
How Take-Profit Works
Bitcoin purchase: $50,000
Take-profit: $60,000 (+20%)
If price rises to $60,000:
→ Automatic sale
→ Profit locked in: +20%
Profit-Taking Strategies
Full Exit
Selling 100% of position when target is reached.
- Pro: guaranteed profit
- Con: may miss further growth
Partial Exit (Ladder)
Selling in portions at different levels:
Purchase: $50,000 (100%)
+20% ($60,000): sell 25%
+50% ($75,000): sell 25%
+100% ($100,000): sell 25%
Remaining 25%: hold long-term
Investment Recovery
Sell enough to recover initial investment:
Invested: $10,000
Growth +100%: value $20,000
Sell $10,000 → recover investment
Keep $10,000 → "free" coins
How to Set Take-Profit
By Goals
- Conservative: +20-30%
- Moderate: +50-100%
- Aggressive: +200-500%
By Technical Analysis
- At resistance level
- At psychological levels ($100k, $150k)
- At previous ATH
By Market Cycles
In a bull market:
- First take-profit: at previous ATH level
- Second: 2x from ATH
- Third: at signs of reversal
Take-Profit and DCA
With DCA strategy, take-profits are used differently:
| Strategy | Take-Profit Approach |
|---|---|
| Pure DCA | Not used (indefinite accumulation) |
| DCA + exit | Take-profit on long-term targets |
| Hybrid | Partial profit-taking on growth |
Common Mistakes
- Greed — moving take-profit higher as price rises
- No plan — emotional decisions
- All or nothing — selling only at one level
- Ignoring market — not adapting to situation
Stop-Loss + Take-Profit Combo
Professional approach — use both orders:
Purchase: $50,000
Stop-loss: $45,000 (-10%)
Take-profit: $65,000 (+30%)
Risk/reward ratio: 1:3
Rule: Risk/reward ratio should be at least 1:2, preferably 1:3.
Take-Profit Psychology
Main problem — greed. When price rises, you want to wait for more.
Solution:
- Set take-profit in advance
- Stick to the plan
- Use partial sales
- Remember: "A bird in the hand..."
Important: Unrealized profit is not profit. Until you sell, it's just numbers on a screen.
