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- If I'm going in with all of my money and the price goes up then the profit is bigger (50%), but if the price goes down I can choose between: cash out at the moment with a loss or to wait days, weeks or months until the price goes back (can't trade anything because all of the money is already invested) to be back at 0.
- If I'm going in with half of the money and the price goes up, then the profit is lower (-50%), but if the price goes down, then the chances are I can buy back the crypto at a low price and wait until reaches a price that my investments will cancel each other out, so I will be back at 0.
What do you think about this risk management? How do you invest your money (if you're not a holder)?
If you're serious about daytrading and don't want to simply hold -- which, arguably brings better results for some -- you should work with a mixture of both:
1) Cut your losses on pre-determined price levels and cut them on time -- there's no point of cutting losses when you've reached what could be the next bottom.
2) Never trade all-in on a single position. It may be tempting, but it severely reduces your ability to react on market moves. Going all-in you may get lucky at times, but sooner or later you'll be in a losing position and then it's always good to have a backup plan.