You don’t have to stop being bullish to sell

This is probably the biggest thing I took from the PONS trade.

Crypto makes us think about positions in a very binary way. Buying means bullish, selling means bearish, and if a big holder starts taking profit everyone immediately assumes he knows something.

But taking profit and losing conviction are not the same thing. (banger quote by Carlitos)

If you bought something at $5M because you thought it could reach $1B, you don’t have to choose between selling everything at $200M or holding every token until $1B. You can still believe in the thesis while slowly reducing risk on the way there.

That’s basically what AvgJoes or even Frank Degods have been doing. They turned part of an enormous unrealized position into actual money while leaving enough exposure to benefit if the tokens keep going up.

If it goes higher, they still there. If it collapses tomorrow, some of what used to be numbers on a screen is already their money. Carlitos calls this fugazi gains. And this is also important, a wallet might show $4M in value, but that doesn’t mean you can magically click sell and receive $4M without moving the market.

If your wallet is public, dumping size can also make everyone else panic at the same time. At that point, exiting becomes part execution and part emotional control.