Smart Strategy: Why Partial Profit Taking Saves Your Portfolio

When the market begins a correction, it becomes clear who the traders are that managed risk and who are still waiting for a rebound. At this stage, coins have fallen by -30%, and those who took profits early as the asset grew have a significant advantage: they have cash for discounted purchases, while others are forced to watch their positions depreciate.

Practical example with FTM: from theory to action

Let’s take our recent analysis of Fantom. The second target was achieved with a result of +167.4%, and the first target was closed with a profit of +85.33% two weeks earlier. The logic was simple: upon reaching the first level, close one-third of the position; at the second — another third. Currently, the final third should remain with a protective stop below the level of $0.7.

This is not just a recommendation — it’s a proven approach that turns paper profits into real funds.

Why partial profit-taking is more effective

The main rule of trading is simple: until you close a position, you haven’t actually earned anything. The market can turn around at any moment, and even +167% can vanish if you close the position at a loss.

Splitting profit-taking into several stages solves two problems at once:

Real income instead of an illusion of profit. Each closure of one-third of the position is a tangible result that can be used for new trades or to hedge against losses.

A constant reserve for re-entry. While BTC and ETH are correcting, traders who took profits have liquidity. This is critical for medium-term strategies, where volatility creates opportunities.

The difference between short-term and long-term

An important nuance: the method of profit fixation in parts is applied exclusively to short-term and medium-term trading. Long-term portfolios do not need such intervention — they operate under a completely different accumulation logic.

Since no one knows the exact peak of any coin, trying to catch the absolute maximum is a doomed idea. It’s much more effective to lock in gains as the price rises, leaving a small position for the potential long tail of further growth.

Scenario without profit fixation: how to lose the opportunity

Imagine the opposite scenario: you did not take profits according to the recommendations, waited for a correction of -30%, and now are simply waiting for recovery without funds for purchases. This means losing not only profits but also time. The market does not wait for passive observers.

Thus, regular profit-taking is not a conservative boring tactic but a tool that simultaneously protects earnings and prepares the portfolio for the next waves of growth.