Wow, this is what I was doing intuitively when I first started trading. My profits from BTC went directly to other coins everytime I made profits. I'll admit I wasn't doing the rebalancing of 10% which is the next level but as I like anything that removes emotion and sitting in front of a screen I will apply this to my plan of attack.
Ive learned so much in two months my head is spinning, but with this info and the technical analysis I am learning from @Haejin I will continue building my portfolio to the moon.
Thanks for the post!
The 10% figure is just an easily illustrated figure. It all depends on your risk tolerance to begin with, then with your expectations for each issue, etc. I've got current rebalancing thresholds as high as 45-50% right now for core holdings, which just basically means that I want to see the individual holdings run a lot before I take profits, and that means I run the risk of missing a short term selling opportunity where something goes up to, say, "only" 40%. That's because I'm extremely bullish long term on those holdings, but I'm risking a lot of money when I do that. Of course, you're always watching current events, pricing, fundamentals, etc., and when something gets up into nose bleed territory, and things are looking shaky short to intermediate term, you might make a decision to "modify" your thresholds somewhat and scale out a little bit at 40%. I recently did a little of that with ADA, on the previous spike higher.
It is rather intuitive.
Always take some profits when you can.
With tokens, even if you are bullish on one of the big coins, there are other ones which are going to move bigger. That is the key. Not being tied to one token but realizing that things change and moving into others as they develop more.