Lucrat

@lucrat1vus

Charts are my playground and when they don’t obey I kick them in their ass 😘

Charts

Joined April 2022

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154 Followers

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Lucrat @lucrat1vus

over 2 years ago

> long tweet < if im paying twitter to be able to make longer tweets, let me use it for once here it comes, the title: "RISK MANAGEMENT IN TRADING/ HOW SHOULD YOU MANAGE YOUR PORTFOLIO" anyways, I wont complicate and steal your time so here is a short summary of stuff in this post: > RISK MANAGEMENT < > YOUR CRYPTO PORTFOLIO < > RISK/REWARD in trading < lets jump to the facts. and do not worry about my inability to write capital letters. its meant to be like that. why, you might ask? so you read slower mf! i will try to write this post progressively, so you will have basics at the start and harder stuff at the end of the post > RISK MANAGEMENT < usually, people come into trading pretty straight forward, with one simple goal in mind. to make money. there are few options that every trader at the start of his path will do. to buy a course, to blindly follow calls of a big trader or a few if them, (and directly blaming them if it goes to hell) or (thats the best one) type into youtube: "BEST TRADING STRATEGY MONEY GUARANTEED" Lets forget the ones that call themselves ICT or SMC traders after a week and a half of watching some random videos that were made by a random scum that gets money in crypto just because course selling is an option and with all this stuff i tried to make a point. and it is, that everyone forgets about risk management. or they do not use it. they go all in, just like in poker am I really going to put last 100$ that were meant for food in a random meme coin? no. (a lot of people do that, remember sol pre-sales?) its important to use your money wisely. and its done with percentages of your portfolio > YOUR CRYPTO PORTFOLIO (how to build one) < (about diverting a portfolio, which directly correlates to RM, because thats the same thing! wisely sorting money, and the second part, which I will visit a bit later, risk/reward ratio which is the most spoken about when discussing this topic) once upon my time, I received a trading pyramid. just like the food pyramid your learned about in your sixth grade. but lets throw the food out. lets imagine a pyramid with 4 floors the biggest part of your portfolio should be spot positions. not memecoins, but solid projects. i dont say new projects are wrong, i just say they must be coins with solid teams and a solid project, that at least has potential. of course having some bigger coins, is not even questionable. wanna have eth, inj? perfect! there should be 50-70% of your portfolio. some say even more (70-90%) but that comes really into a play when you are or close to be a crypto millionaire. earlier? do not over complicate. there comes the part of the pyramid thats just a bit higher. and in this bull cycle- its for AI projects. find good projects and invest in them. They can easily multiply your portfolio. what percentage? 10-20% now here comes the exiting part. last 30-20% is meant to be used for fun and a bit more fast trading and scalping. we need to put it in half. here is almost the top of the pyramid. on 3rd floor we spend 15% for positions that are opened and closed daily, for short term executions. its for trades of our own, with it we can experiment, its for learning purpose. if we do not feel ready yet, you can use those 15% on calls and trades that are posted by bigger traders you respect. welcome to the 4th floor (top of the pyramid) here you can find your leftover funds. 15-3%, keep this part of portfolio as low as possible, because you will most likely lose it very quickly. its meant for aping into the coins/pre-sales, it is for playing with DEX screener and similar stuff. basically gambling. if you want safer trading, leave this part out, also if you can not handle emotions, stay out of it completely!