How to Take Profit (Take Profit) in the Crypto World

Trading crypto assets offers lucrative opportunities for individuals to make substantial profits. However, many traders find it difficult to hold on to the wealth they have amassed.

It is this common mistake, namely selling too soon or holding on to an asset for too long, which often results in traders returning to zero.

To overcome this challenge, experienced trader Toni Ghinea shares valuable insights on effective strategies for profiting in the crypto world.

By understanding the importance of capital preservation and adopting a disciplined approach, traders can increase their chances of long-term success.

Contrary to popular wisdom, Ghinea emphasizes that the main goal for traders should be survival. While profits may look tempting, it is important to focus on preserving capital in volatile crypto markets.

“A change in mindset is needed, where the true skill is not in making money but in keeping it,” says Ghinea.

Ghinea revealed the value of the "OODA loop" as a decision-making framework for traders. This loop consists of four steps: Observation, Orientation, Decision and Action.

By asking critical questions about the market environment, such as determining the outcome of strategic price battles and identifying signs of trend continuation or reversal, traders can increase their awareness and build hypotheses based on real-time scenarios.

According to him, one of the keys to success lies in recognizing recurring scenarios and automating decision-making based on past experience. Through careful observation and hypothesis testing, traders can develop a strategic advantage.

“Trading is not about predicting. But it's more about responding quickly to market dynamics and seizing opportunities as they arise," he said.

In this regard, Ghinea shares some effective alpha strategies that have worked out her years of experience in the market. 

This strategy includes:

Top-Down Analysis

Start by analyzing high time frames (HTF) such as monthly and weekly charts before paying attention to daily charts. This approach helps identify macro trends and provides a broader perspective on market cycles.

Identifying Trends

Determine the current phase of the market cycle (bull, crab or bear market) and its current position (early, middle or late). Price action analysis, such as identifying higher highs and lower highs, combined with indicators such as Exponential Moving Averages (EMA), can help identify trends.

Watching Price Reaction

Instead of trying to predict market movements, focus on how the price will react at different levels. Price action analysis is important in understanding market behavior.

Gradual Entry and Exit Scale:

He suggests implementing a strategy based on zones rather than specific buy or sell prices. Set several take profit levels so that you get an “average sell price” that is close to the top. Instead of trying to catch the exact tops or bottoms, focus on scaling the entry in the opposite direction during a weak downtrend and following the trend during an uptrend.

Mastering Emotions

Controlling emotions is the key to making rational decisions. Strong emotions such as euphoria, fear, anger and joy often lead to irrational decisions during extreme market conditions. Traders should try to maintain emotional discipline.

Trading with Deviations

Traders should be aware of market manipulation, in which market makers often temporarily divert trends in the opposite direction to trap retail traders. Identifying false breakouts and deviations can help traders avoid prediction errors.

Think and Act Like a Market Maker:

Every trader should have several strategies that market makers do to take advantage of various market conditions. You need to have the right reversal trading system in place, such as studying the Power of 3, Fair Value Gaps, Order Blocks and more.