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/biz/ - Business & Finance

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6777001 No.6777001 [Reply] [Original]

The right approach to manage a portfolio I read some threads where anons suggested
>take 25% profit when a coin reaches 20% in 24 hours
>another 25% at up to 50%
>50% when the coin moons by 50% or more
>you reinvest into your worst performer in the last 24h
>or move it to USDT and wait until one dips significantly
Is this a good approach? Could those numbers be tweaked?

>> No.6777038

I wouldn't recommend this at all.
Might work for granddad's stock portfolio but not for yolocoins.

>> No.6777061

>>6777001
A market crash is likely to take the form of consolidation into the projects perceived as safest. This approach will fuck you when it all goes south.

>> No.6777074
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6777074

why would you take profits even? if you hodl you have more coins that go up in value

me dumb pls explain

>> No.6777140

Professional traders rule.
Always take profits.

>> No.6777241

>>6777074
>>6777140
That is why I'm asking. Is the best approach to take profit? If yes how?

>> No.6777326

>>6777241
You take a profit when you estimate the investment has reached its high point.
The advantage of removing half on speculation is that you could be wrong.
On the other hand if you see a drop, you can still back out at a small decrease in profit.
It's risk management.

>> No.6777422

I want to know as well. Trading or holding? I see anons trading themselves through the dip and want to know if it's just luck or actually the better route to take

>> No.6778166

>>6777326
Meaning you have to calculate for yourself if you want to take that risk?
>>6777422
I'm sure there is a lot of larping and survivor's bias involved as well.

>> No.6778234

>wants to take profit
>wants it available to buy back in just in case
>doesn't trust tether

wat du biz?

>> No.6778256

>>6778166
>Meaning you have to calculate for yourself if you want to take that risk?
Well yes basically.
I just detailed you a way to minimize risk.
Maximum risk would be to withdraw your investment at the maximum profit, taking into account opportunity cost.

>> No.6778268

Managing a down trending market is always tough. The strategy you posted is for up trends, bull markets. Current trend is bear and the last dead cat bounce is already over and new lows will be reached next week. Wall Street is actively shorting BTC which will drive all crypto down. Read up on succeeding in a bear market.

>> No.6778290

>>6778234
quit crypto

>> No.6778309
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6778309

>> No.6778329

>>6778309
This should be your investment strategy. You accumulate crypto and also post losses for the IRS.

>> No.6778338

>>6778268
Wouldn't a risk management strategy like mentioned above be useful in bull and bear markets?
So you have to change your strategy entirely in that case?

>> No.6778572

>>6778329
How do you only show losses?

>> No.6778618

>>6777074
Take some profit when it goes up, buy back in when the correction happens and the price stabilized