Last week, during the pre-FOMC selloff, I added two positions to my crypto portfolio.
TAO at an average price of $215.20.
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DOGE at an average price of $0.07918.
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Six days later, TAO was up roughly 47%.
DOGE had gained roughly 31%.
And another position I entered earlier this cycle, Coinbase, had risen roughly 44% from my July entry.
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But yesterday, I did something that matters far more than celebrating the gains.
I became more cautious.
We had reached the yearly open. Bitcoin was printing a 3-day divergence. Several positions had moved very quickly.
So I started taking profits.
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Today, the pullback arrived.
This is the part of investing that rarely gets as much attention.
Everyone wants to know what to buy.
Far fewer people have a system for what happens after they are right.
When do you add?
When do you hold?
When do you take profit?
When do you stop being aggressive?
The goal is not to predict every candle.
It is to have a process before the market forces you to make an emotional decision.
The entries and yesterday's profit-taking call were documented in real time.
Diego Sonderberg
Sonderberg Research