Why I just sold half of my Antshares/NEO
Antshares/NEO is rocketing, it is up 134% in the last seven days, on a personal level this is now my biggest holding, and the move is now in the parabolic zone. It is times like this where it is important to make good decisions, avoid being greedy and don't punish yourself if hindsight had proved you should have done something different. The only thing you should do is make good decisions with the information in front of you.
Remember, we are here to make good solid decisions based on a strategy.
So what to do? Remember, nobody knows where a price will go, all we can do is look at the charts, follow a strategy and make a decision we are comfortable with, as such:
- If you are a long term investor and in for the long run then you can hold out. If the price drops back, it doesn't matter as you strategy is long term. Therefore you are riding the waves up and down. This used to be my strategy.
- If you are a trader, then you need to start thinking about taking some profit off the table. This is what I have done. While I think the price may go higher, I sold off half my ANS holding, a position I took out six weeks ago for a profit of 140%. Yes, we all want +1,000% profits, of course, we do, we all want to make the best returns we can, but for me, the priorities have changed. I have quit my job to trade full time, I, therefore, need an income and any +100% profit is a good place to be.
Why didn't I sell all my ANS? Why didn't I hold out for higher? This is where it comes down to risk/reward. You will often read stories on Reddit where people talk about a coin like Ethereum, where they said they sold at $100 and then had to rebuy at $150, if only they had waited. This also works both ways, some people bought at $400, and it dropped back down to sub $200, they are stuck either selling at a loss or holding the coins until it comes back.
This is why strategy is so important. What ifs are no good, shoulda woulda coulda does nothing for us, as such with any investment you need to:
- Find a good entry point: Antshares is not a good entry point for me at the moment because big moves often retrace down.
- Find a good exit point: selling some of your Antshares for 140% profit at the moment is a good thing because big moves often retrace down.
As I have said before, my strategy is one of rebalancing my portfolio based on market movements and taking 5% off the table for every 25% up.
I didn't sell all my Antshares because I am not a day trader. I like the project, and I think it is a good long term investment. If the price does retrace down, I may find a new entry point, and if the price goes up and stabilises, then I may find another good entry point. I won't though beat myself up about this because I made the right decision at the time with the information in front of me.
A large section of the crypto community has this mentality of hold (or hodl if you are on Reddit). This can work for some if you are a long term investor. Sometimes I feel this is a defensive mentality used when a price turns against you.
We can't all hold forever. Maybe one day Bitcoin will be a global payment currency accepted everywhere like Fiat, and we will just use it like that. We aren't there right now, as such at some point we may wish to sell, be it for a holiday, rent or to just to lock away money that we can use in real life.
As ever my advice is always the same:
- Don't invest money you can't afford to lose
- Don't chase a parabolic move
- Find a good entry point
- Don't worry about taking profits off the table
- Don't get over emotional, if you are getting emotional you are over trading
- Nobody regrets taking money off the table when the market turns on them.
I do expect Antshares to continue rising, but I won't beat myself up, I made a profit, and I still hold a significant position.
Any questions, then please ask.