How to make profits this crypto cycle: selling strategy with Zeneca

Transcript

GM good morning welcome to the milk Road show The Daily crypto show that's like finding the perfect avocado at the grocery store rare but oh so satisfying I'm your host Jay Hamilton and today we're joined by crypto investor and educator zenica whose portfolio was worth eight figures at the peak of the last cycle now today we're talking about something very important notice I said at the peak of the last cycle we're talking about how to sell the hardest thing in investing is selling and we want to make sure you guys don't this up because a lot of you are unfortunately and selling's tough selling is tough because there's a lot

of questions to be answered how do you know when it's the top how much should you sell when do you buy back in what if you sell too early and missed most of the gains what if this is the super cycle and we don't have a bare Market ever again how do I manage paying a tax bill at the end of all of this and what does that lead you to maybe I should just never sell and I should just hold forever and then you're not going to take profits and that's not what we want So today we're going to give you guys a step-by-step guide of exactly what you need to do in order to maximize your profits in this cycle before we jump in I want to give a quick shout out to a couple of great companies that also help you maximize profits I'm talking about

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for yourself today just head over to milro zenica welcome back to the show my man before we recorded we were talking about how would we feel if you we were sitting here one year from now we've recorded another 50 somewhat episodes together and one of our listeners are unfortunately possibly many of our listeners were sitting there saying I didn't really make much money in the last bowl cycle it would suck and unfortunately it happens all the time like uh you know people go through an entire cycle and they round trip or they didn't take profit they have a big tax bill at the end of it one reason or another they

just they were here through an entire bare and bull cycle and they didn't have much to show for it financially at the end of the day and hopefully we can help remedy that and and give some advice from our learnings because we've both been around for a couple of cycles and I think we've both held too long and not taken enough profits and and learned a thing or two and hopefully can share that with others let's start with why is selling so hard it's just I think psychologically is a big part of it because if you think about it Warren Buffett has his great quote everyone's probably heard of it be greedy when others are fearful and fearful when others are greedy and uh it's hard to do because if everyone around you is greedy if everyone is bullish if you're on crypto Twitter you're in Discord

telegrams you're watching the news you're watching whatever and everyone's like oh my God Bitcoin is you know it's a super cycle it's going to 250k it's going to 500k it's going to 150k whatever the price Target is alt season is just around the corner everything's about to explode you know web 3 gaming is taking off for the AI and crypto Revolution is here there's some narrative that's just it's all going to the Moon to be able to sell in that environment and in that moment when everyone around you is so sure that we're going to do another 2x 3x 5x is incredibly difficult it's it's really really really really really tough and that's why so many people don't do it and that's why it's like it's not a bull market until everyone is so bullish that's why having strategies in advance and having a system set up so that you

take the emotion out of it so you're not trying to make that decision In the Heat of the Moment when everyone is bullish to sell and you've already come up with a plan way ahead of time or a system that's how you can most effectively sell mhm yeah I feel like it it really comes down to like humans aren't robots robots are way better investors than humans are right Bots are better like let's be real and a lot of us don't have the discipline to do what a robot would do which is just stick to the plan and even worse a lot of us don't even have a plan and then if you don't have a plan then it's impossible to sell everybody loves to buy and think about when to buy and how much to buy but they never take the time to make the plan and we're going to

talk about how to make that plan but also I think the other thing is nobody knows what's best for you nobody can predict the top of a cycle or when you should sell or how much you should sell nobody knows that and if you're listening to this my bet is that you're Allin on crypto or mostly in on crypto you're probably aiming to significantly increase your wealth in the next few years I don't know what your target is maybe at the bottom of the last this cycle a year ago maybe you had a 5 to 10x Target that might be if you still have that Target I'd be a little bit concerned maybe your target is now more in the like 2 to 5x category for the

rest of this cycle and you're probably you know mostly in the majors and you're sitting here during this time and you're thinking it's not making me enough and now you're getting frustrated the emotions coming in so if that describes you make sure you turn it up turn up the volume because we're going to give you guys everything you need to know today let's start with Zen I think that the most important first step when you're trying to figure out your how to sell and when we talk about how to sell today I think the way you know how to sell is by having a plan so we might actually just refer to this as you're having an investment plan and the first set is setting goals how do you think about setting goals for as an investor yeah I

mean you're absolutely right it's the most important part because everyone is different and it might be a good time for someone else to sell but not a good time for you to sell or conversely a great time for you to sell and someone else with a different plan or goal should not be selling at that point in time and I think it really is just as simple as sitting down pen and paper I I firmly believe pen and paper is better than keyboard and and app on your computer or whatever just get away from technology and just you know go out to the park sit on your balcony go get some sun or whatever get a nice tea or cup of coffee and think about like what do I want out of crypto what do I want for my financial goals in and out of crypto and

think about it on like a one2 five 10 year 25 year time Horizon and write out some goals and it's it doesn't have to be specific it doesn't have to be I want to make x amount of money it could be you know I want to find Financial Freedom or I want to quit my job I want to buy a house it could be I want to pay off my debt it there's so many different things it could be I want to set up a college fund for my kids and once you have one or few of these goals you have something to work towards and then you can start like figuring out roughly how much money you actually need in Fiat at the end of the day because most of these things cost Fiat to take out of crypto and you can start sort of working

backwards towards hitting these goals and once you have that then you can put in place sell targets and strategies and systems but you can't do any of it if you don't have if you don't know where you're going and it really just takes half an hour with pen and paper maybe an hour to flesh it out and it will give you so much Clarity it will put you so far ahead of everyone else who's not putting in the half an hour an hour to sit down and write down their goals and then from there we can work out like what's the best strategy and approach for you you can work that out for yourself I'm going to challenge your your goal of Financial Freedom only because I think specific goals are more helpful than yeah no I think like starting out there but then working like

okay what is Financial Freedom to some people million dollars sitting in Investments and getting 5% a year and they can live off that some people need 10 million cuz like they just have a more extravagant lifestyle or they have eight kids or you know whatever it is everyone's different so start off with the rough goals but yes drill it down to specifics because all right you want Financial Freedom how much money is that at the end of the day after tax sitting in Investments pass all that kind of stuff you need to know those numbers but maybe your goal isn't Financial Freedom maybe you just want to buy a car or buy a house in the next two years and that's your goal and then after that you'll have a new goal that's also totally fine just totally yeah figure it out but I think you need you need so if I think

about my goals my goals right now are twofold one is to do a renovation to my house that I think will cost about $200,000 and so there's a very specific okay like I know I need $200,000 I don't think I'm going to get it tomorrow but I know I need to pull out $200,000 in profit in the next few years okay great so now I can I can align around that and then the other is to have a crypto portfolio that can generate yield for the long term okay so then in order to do that I need to leave a certain amount in crypto and like those two goals are like specific enough and I think that's

really what it comes down to is like have a financial how much money do you want to be able after tax because tax is a key consideration and then what sort of long-term yield are you looking to create assuming you believe that leaving it in crypto is a great way to produce both long-term yield and continue growth yeah 100% my goals are are in the same category where it's like we live in an apartment now we want to move into a house in the next three to five years so it's sort of how much money do we need for that and we've got a rough idea to have that Financial Freedom to not need to work as well um I'll probably still continue to work but um there's a price target for that to support me and and my partner and our future kids we've

thought about you know all right they're going to need money they're going to need schooling they're going to need all sorts of stuff and just taking the time to plan out your future I think is is so beneficial and again not too many people actually go through the motions of doing it or or they do it but they they just think about themselves and they don't plan about for the whole family unit or where they might be in 15 years time like you might be single 22-year-old not even contemplating you know your future kids whatever but if you want to have kids and something you know in 15 years you're going to be needing or 20 years you're going to be needing to pay for and think about you should be thinking about it now MH yeah totally man little zenica amazing can't wait I think that

uh what is important here though is when you do this exercise you nailed it 30 to 60 Minutes is all this should take if you are going longer than that then you're probably actually just going too deep and you're overwhelming yourself and you're now getting anxiety because you don't know if you want kids and you're thinking about that like don't that's not the purpose of this just have a few most likely a few C large Capital things that you want to buy in the next few years and know how much car house whatever it is and then have some some sort of yield bearing goal as well is usually helpful that kind of goes to the next point which is a good way to think about this is by segmenting your portfolio into three categories crypto

you plan to hold for the long term so 10 years plus let's say crypto you plan to sell into Fiat that's the how much money you want to bring off the table and have in profit and then crypto you plan to trade throughout this cycle that would be trading it you know through out meme coins whatever it is that's going to be more risky I hope everybody listening honestly everybody listening you should probably have next to zero% of your pfolio in that category do it small do it very small what do you think about do you think about those three cator is that how youment yours those are really good buckets and I think that it it all falls under like part of overall portfolio strategy and everyone should have a overall portfolio strategy both within crypto and out of crypto and

within crypto like you said having these distinct buckets of long-term holds amounts you want to take into at and then short-term trades is is a really effective way of of doing it one thing I will call out though is it's great to have these buckets but it is important to regularly review your portfolio and and how they are lining up with these buckets for instance um if you want to grow your long-term Holdings how are you adding to those Holdings if you want to for instance if you make a bunch of money like let's say you have 2% of your portfolio in the short-term trade bucket and you hit big on a mem coin and you know you 20x or 50x on that return you should be taking money from from that putting it into the other two buckets like if if if you just leave it in there

then all of a sudden you've got like 30% of your overall portfolio in meme coins and that's not what you set out to do but it happens way too often where people not due to specific actions but due to inaction due to not sitting down and reviewing their portfolio regularly they come up with all right they sit down they have a plan this is what my portfolio to look like my buckets great very sound strategy they go off do some trading and then you know one thing leads to another and six months later they've got a vast majority their portfolio in crappy little meme coins and not enough in long-term holds and not enough in crypto that they want to sell and take into FIA and so I think by regularly reviewing your portfolio do it weekly do it monthly do qu quarterly is probably a little too too long in a bull

market but monthly is a good good Cadence that's like one of the uh most impactful triggers for identifying when to sell I think because I think a lot of people struggle with all right when do I take profit when do I sell well if you've done this exercise of you know right I want my portfolio to look roughly like this and then you do a review on a month and you're like holy crap I've got 25% of my net worth in Dog with a hat maybe well I should sell some and put some into my long-term Holdings and Achieve these long-term goals it's when people don't have those strategies in place and they get caught up in the hype and the Mania and the oh my God if it just does another 10x and they do the moon math and like then I could pay for

all my dreams and goals and it it's usually when things end poorly like the so we got two exercises to do do a goal setting exercise 30 to 60 minutes and a financial goal setting exercise to be specific and also do a monthly review of your portfolio whether it be pen and paper or however you want to document that so important okay let's talk about the selling into Fiat that is obviously the hardest part what are the different ways that you would approach selling would you have a sale price and sell all at once how do you think about

having that s selling plan yeah so I think um one of the nice things about fungible tokens and and most crypto assets is that you don't have to it's not all or nothing you can sell in chunks and I think that that is beneficial because you're never going to time the top you're never going to know exactly the right time to sell but you can sell you can set sort of price targets where you're like all right once the price starts getting say above a certain amount you start selling at a small percentage every week that it's of that amount or you know when it hits let's say when eth hits 3K you sell a bit when it hits 4K you sell a bit when it hits 5K you know you set these targets and you say I'm going to sell 10 20 20% of my position at that price and

take it into Fiat or take it into another currency I think um having that plan ahead of time is really important and beneficial and I think that by understanding that it's not all or nothing it really I think alleviates a psychological pain because a lot of people are like oh my God if I sell and then it goes to the moon I'm going to feel awful just sell a little bit just sell 20% sell a small percentage of your allocation mhh yeah I think that the thing that everybody should do is you should set a sell price set a sell Target and the way you do that and everybody's afraid of of this but you do your own research and you make your own assumptions right and you say I think

BTC is going to Peak at 100 150 200 in this cycle you pick your number you know do your own research don't just listen to us get it from a variety of sources and then you'll never sell the peak whatever you think the peak is you're never yeah I don't know a single guy who's ever done that there's one in the world and he's got you know a piece of gold stuck up his butt so you're never going to do that so then what I would do is let's say my assumption is BTC is gonna peek out at 150k in this cycle I would take somewhere around like 60 to 80% of that and I would start selling there because I would know that I might even start at like 50% of that but that

would basically be I mean 50% would almost be where we are right now we're you know we're yeah we've our all-time high is close to 50% of of that so but then I would and I would never try to get the peak I would I would probably everything I'm planning to sell I would want to sell by about 80% of whatever I think price Target is does that resonate with with yeah 100% and I think that um having that plan in place when you buy the tokens is also really important and impactful but yeah just have a plan and you what you said is um so important is you have to come up with it yourself come up do your own research come up with your own thesis don't just follow what we're saying don't follow what some influencer on Twitter is saying don't follow what a YouTube video you watched

is saying you have to have your own conviction and thesis otherwise it'll never feel good when you sell because it'll feel unsure and you're like oh I'm just following this person but what if I'm wrong about that I think it's right but I don't have that confidence whereas if you've done some research you've sat down set some price targets you could be wrong you know people get it wrong all the time but at least they're yours you have conviction and it's difficult to be too wrong when you're putting in the time doing research coming with rough price targets and having a strategy to sell as you get closer to those price targets like it's very hard to get that wrong or or too wrong in in in a crypto bull market so I think just have that conviction of your own set those price targets scale out as you hit those

targets and this brings us back to the um the different buckets the important part is you've also got some long-term Holdings so even if you know you sell out all of your your crypto deat that you wanted to sell all the trading you've done you've sold that all of that as well and then we go on the craziest bull run we've ever seen in the history of crypto and Bitcoin rips to a million dollars in two years time you've still got long-term Holdings which will give you exposure to that I think that's the important part what's up uh Zen's dog thanks thanks for joining she wants your attention that's for sure like hey human give me give me she's like four months old so she's very much in that puppy stage right now oh boy oh boy not not jealous so okay two other things I want

to touch on before we wrap up that are really important here one is tax and then the other is the emotional side of selling because there's a lot of Shame around selling that part of it is important too let's start with the emotional side of selling what do you say to that because I know you you know in your community I'm sure you see that a lot right of people posting in Discord or on crypto Twitter and like man they'll just rip you apart for selling as if we should never sell it's prevalent everywhere in crypto I found it to be most prevalent in like the cult areas of crypto which historically have been like mem coins and nft Collections and projects where like this cult Community forms and if you sell then everyone within the community is like oh

my God how could you sell don't you know the team's going to do this that and the other and you know obviously we're g to 5x from here and obviously everyone is just talk in their bag they have bag bias they're trying to pump their own bag they're trying to shame you because they're fearful that you're right and they're wrong and and maybe we've topped and it's a real thing and it can it can prevent people from wanting to sell because especially if you spend time in the community you've got friends in the community you can feel like this emotional attachment which makes it very difficult to make correct and sound financial decisions because then your emotions are are taking over I think self shaming is terrible I think it's one of the most awful parts of our space because if everyone's being honest and

real with themselves we're all here to make money for the most part and you know it is PVP at the end of day yes you can have friends you can be part of the same Community you can help each other out that's all great but at the end of the day it's it's your life that's going to change due to making or losing money and and need to make the best decision for you and and try and take the emotion out of it so yes self shaming is real and prevalent it's always going to be a thing but it's always important to think about like why is someone shaming you why is someone calling you out for selling and it's usually because they have a big bag of the thing and they're fearful that right yeah yeah and let's be real everybody should be selling some

some unless you're just so filthy rich that you're just adding to your portfolio forever because you don't need any profits right now but I don't think that would describe most of the people listening to the show let's talk quickly about one more quick thing I just wanted to mention is if you're if you are being sell shamed you're probably doing something right because if if everyone around you is bullish going crazy and that's the time you want to be selling if you sell and everyone's like also selling that's you probably waited too long and maybe that's a time to be buying but um when everyone is is shaming you for selling being like Oh my god you're an idiot we're going to the Moon things are probably a little frothy and you've probably picked a good time to sell yeah well said okay tax let's touch on tax

quickly what would be your the steps you would advise somebody to take in terms of how to plan for tax obviously jurisdiction yeah yeah so every jurisdiction is different in the world so figure out what it's like in your country some countries have no tax and they're amazing some countries have very sophisticated taxs uh I've lived in both been in Dubai and now I'm back living in Australia and I think the most important part is just to plan for it and set aside the money you need to pay for your tax obligations at the end of the year because I've known many many many friends in this space who have just been wrecked where they've just traded they've airdrop farmed they've gotten all this money and then they haven't really planned or thought about tax I'll figure it out later you know this is

something future me has to worry about and then when they get around to do it either because the tax Authority sends them a letter or because they're like you know it's time they they start digging into and they're like holy crap I owe more money than I have now or I owe all my profit back and by doing some planning in advance they could have avoided that or planned better around that and so I think that a setting as you sell setting a percentage of that aside to pay for a future tax debt is really really important but equally as important I would say is understanding how Tax Works in your jurisdiction and then optimizing your trading around that because it could be you trade through a company it could be through a trust it could be you don't air drop Farm because

air drops are awful for your jurisdiction it could be that you know you sell before the end of the financial year to lock in some losses that you can then carry forward into future years it could be that you hold longer than 12 months because of capital gains discounts available to you maybe they're not available to you so you don't do that so just do some research figure out what is the situation in your jurisdiction and plan around it because it's the least sexy most unfun boring part of all of this but it can have the largest impact on your actual end financial status in life because um at the end of the day it's not profit until it's taken out of crypto in a bank account like I know we're all for decentralization and being unbanked and all that kind of stuff but we still live

in a world where if you want to buy a house you need to pay in fat if you want to pay medical bills or grocery bills and school fees it's still in Fiat I need money in a bank account to pay for these things so figure it out how you can do that and then meet your tax tax obligations at the same time yes it's so true and for everybody listening that's like oh my gosh how do I figure all that stuff out like it'll take you some time you're going to need to talk to some professional advice you can also just start with good old Google or chat GPT but the the simple thing everybody just do this right now please like just do some quick math on what capital gains are tax is in your jurisdiction you can figure that out very quickly and then

just set it aside like have a bank account that you you take 30% out or you take 50% out of all profits anytime you take profits take that percentage put that into that account and don't touch it and at least then you're most likely covered for the most part that is the simple yeah and like worst case scenario you get it money back and you don't have to use like great you know you've at least got it and that's extra savings or extra feat better than not having it and having to sell at the I've had people that had to sell their portfolio like a year ago in the peak of the bear because they didn't plan around their tax obligations um I want to shout out a friend of mine Crypt tax sucks on Twitter he he's amazing he'll help you figure this out and get to the bottom of

your tax situation so definitely recommend uh talking to him or finding someone else that there's a bunch of people that do crypto tax specifically and they'll help whatever jurisdiction you're in and they're not specifically accountants per se but they'll work with accountants and help you reconcile all this de gen I want to know if if you guys listening want us to do an episode on tax I would have to think it through how to do it with making it Global and not jurisdictional specific but maybe your bud who just shouted out or somebody else there's lots of people that we could the show uh to talk about so let us know in the comments wherever you guys are listening if you want us to do a show on tax uh also quick question for everybody we've been experimenting with episodes that are anywhere from like 20 minutes long to 35 minutes I

want to know how long you guys actually want our episodes to be do you prefer them shorter 20 minute show do you not care and you just want the best content let us know uh what length is ideal for you guys because we make this show for you zenica thank you so much for joining us again today everybody have a wicked awesome day thanks for having me as always if you liked today's episode please hit subscribe and make sure you follow us if you don't miss out on the next one there's also a link in the description to our free 5 minute daily newsletter where we simplify crypto for you while making you laugh and if you're willing to step up your crypto investing game we're going to also leave a link

for milk Road Pro you get access to our portfolio where you can see exactly what we are buying this is your number one resource to help you invest successfully in crypto one final note this show is for educational purposes only and nothing we say is Financial advice investing in crypto or any asset is risky and you should never invest more than you can afford to lose thanks so much for listening in my friends have a wicked awesome day