Trading styles
How do I manage a crypto portfolio?
Split the money first: long-term holdings in one wallet that never signs anything speculative, and a trading balance you are willing to lose in full. Then cap how many positions can be open at once, take profits mechanically rather than by feeling, and judge yourself on realised results, because unrealised profit is a number that has not happened.
1. Separate the money
Two wallets, and the separation is physical rather than mental. The holdings wallet never connects to anything speculative and never signs an approval. The trading wallet holds only what you are actively risking. This bounds every mistake made in the trading wallet to the trading wallet.
2. Cap concurrent positions
Pick a maximum - five to ten is workable for most people - and refuse the next entry when it is full. Without a cap, a volatile hour becomes forty positions you cannot track, and untracked positions do not get exited on a rule. They get exited on a feeling, later, at a worse price.
3. Take profit mechanically
Sell the original stake at a defined multiple and let the remainder run. It removes the hardest decision in trading from the moment you are least equipped to make it, and it converts a live position into a free one.
4. Measure realised only
- Realised profit, not paper gains on things you still hold.
- Your fills, not the entry prices of the traders you copied.
- Cost per round trip, which is the number most people never look at and most often lose to.
- Win rate beside average win and average loss. Any one of the three alone is misleading.
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