Strategies on When to Withdraw Money, and How Much

Something Crypto and gambling may share in common, is how to stop when you are ahead.A person can tell themselves they will cash out once they reach a specific amount of money, but then it is so easy to keep letting it ride. This can be exciting, but often this leads to not cashing out as much as intended.To help to secure some profit, what are some strategies you have done that work?I feel one of the most important things to do is to cash out your initial investment when able, so then you are just playing with the house money.Perhaps some of you withdraw a certain percent every so often, or after your portfolio reaches certain benchmarks?It is difficult because on one hand, no matter how much a portfolio is worth, until you have cash in hand, you don't have it. IRS can freeze your bank accounts, wallets can get hacked, the crypto market can crash and so on. However, we are likely coming upon a strong crypto market over the next couple of years, so it is tempting to let as much ride as possible to fully capitalize on this opportunity. Nothing is for sure, though.For me, invested $10,000, and my initial plan was to cash out 10k once I hit 20k, and then let the rest ride, while withdrawing some here and there.However, it is now tempting to keep everything in for a while and keep moving to "buy low" cryptos and then flip when they bump up.I also may want to keep a specific amount in a long term crypto or two, while flipping the rest.Maybe I can develop some sort of 1/3 + 1/3 + 1/3 system, where 1/3 is long term leave it alone, 1/3 is flip for short term gains, and 1/3 I withdraw every so often (not sure if monthly or after every $10,000). Maybe I take this 10k and ride until I reach 21k, and then 7k long term, 7k short term, and withdraw 7k. Then when that 14k remaining returns to 21k, I do the same again?I truly look forward to reading how some of you deal with this issue to maximize profit, while also making sure you secure a profit while also balancing keeping a decent amount of money in the game.

Submitted February 20, 2020 at 11:41AM