So, what if you invest 100% in a coin that goes down 40%...that loss is huge...but even if you had gone 50/50, one goes down one goes up, then you off-set your risk a little, and in this scenario, which is very common, the hedging paid off.
no.. if one goes up and one goes down, YOU MAKE NO MONEY lol anyone who can over complicate the process of making no money at all is special indeed
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3. About my small scenario of one coin going up, and one going down: sorry I did not take my time out to write a super specific example, but thank you for clarifying. Yes, if one coin goes up 50% and one down the same rate, you will be even. Good job bud. From my experience, diversifying has helped me profit much more than putting all of my eggs in one basket.
I Lol'd again
yep diversification is an impossibility at this point with the common basket of altcoins that trade on multiple exhanges
As for my logic behind 20% of portfolio, sometimes I might go more, sometimes less, just a rule of thumb I like to start with.
This 20% thing is what people say when trying sound like they know what they're doing. But when asked why they use this as a "rule of thumb" they have no explanation. Because there is none
It's a flawed strategy, no matter how you look at it
sure someone with 800 btc may only be able to physically trade 20% of his portfolio, but still that's 150 btc right there
if someone with only 1 btc was to only trade 20% of this, they can only ever make .2 btc trades which will only deliver chicken change. And if they don't actually know how to trade, they will lose whether they trade big or small. So this doesn't make any sense
If you invest 100% of your portfolio in a coin each time, and profit, then move on 100% to a new coin then...please..please PM me lol
I don't think anyone said that someone should invest 100% of their btc, even if that was said, I don't see what would be the issue with doing this?
But if you only have 1 btc then yeah, you want to be going in with a full 1 btc because 1 btc has a higher potential to earn than .2 btc
People say all the time that there are no guarantees in trading... these people aren't the ones who are making cash hand over fist in crypto. They are the ones who keep losing
for me, there is no way I will make a trade if there isn't room to profit. Thats the whole thing behind making money from trading, knowing what the outcome of your trade will be due to the preparation you undertook beforehand
so, more often than not, when i do commit to making a trade my goal is to maximize profit. How do you maximize profit? By putting more money into the trade. It's not rocket science
it's pointless trying to trade .2 btc several times for only $12.00 in profits when other people make $4000 from just one trade
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