How do you decide how much you want to buy? Let's say you feel bullish on a memecoin, how much do you buy and why that amount? And how does that compare to when you buy BTC, Gold, or a stock? I'd like to know how the average /biz/ user chooses to size their trades
So many variables. Depends entirely on risk appetite, asset class, duration, beta
>>62539626I would gladly hold 100% of my portfolio in BTC. So when I want to buy an altcoin I simply size my position with it so the altcoin's ATR matches BTC's. Let's say BTC moves at 3% per day on average while the altcoin I want to buy moves at 12% per day on average. This means the altcoin is 4x more volatile than bitcoin, so I buy 25% of my portfolio of that altcoin. If the alt dumps 12% the day after I bought it then it would only do 3% of damage to my portfolio, same as BTC.3/12 = 25%This let's me buy any alt I want and I never buy more than my portfolio can handle
>>62540729Fuxking kek. 25% or portfolio on something that does "12% per day". This is why /biz/ loses money
>>62540742anon you know some people go all in on those 12% per day coins right? I got a nice 2x on Rave last month because I was able to buy it without fear
>>62539626Correct.Max 5..10% per individual asset, max 25..30% per asset class. Globally, 50%..75% long-term, the rest is game money. Which % depends on your situation.Finally, volatility: max 0-25% high volatility/memes/1 news away from huge price action, max 50-75% mid volatility (think S&P 500 and most of its constituents), rest in bonds/fiat/metals but the ratios depend on how old you are and if you have a house or not. I'm not gonna be arseraped by a recession at 75, but I'm so glad to buy every dip and trade miners at 45.
>>62540771basing on volatility is the safest and most simple method I'd say
>>62539620Bet size is a function over your bankroll, estimated risk, and expected return.
>>62539620I only buy a memecoin if I can buy at least 3% of the supply with less than $300. they are all scams, the game is to be early, dont feel bad about selling, and steal as much money from retards as possible>t. made $100k with memecoins starting with 3 sol or something I forget
>>62543031I'd argue knowing how much to buy is more important than knowing when to buy
>>62539620All based on riskI dont risk more than 1% per tradeI can full port with 1% risk if it lets me
