Most traders do not blow up on one bad trade. They blow up on five good-looking trades at once.
If you risk 2% on BTC, 2% on ETH, 2% on SOL and 2% on two BTC beta alts, you are not risking 2%. On a red day, they often fall together, so your real risk is closer to 10%.
Check correlation before you size up. Ask: if Bitcoin dumps, do all of these dump with it? If yes, treat them as one position, not five.
Pros manage total portfolio heat, not just single-trade risk. Amateurs count wins. Survivors count what they can lose in one day.
More of this, no fluff, right here.
If you risk 2% on BTC, 2% on ETH, 2% on SOL and 2% on two BTC beta alts, you are not risking 2%. On a red day, they often fall together, so your real risk is closer to 10%.
Check correlation before you size up. Ask: if Bitcoin dumps, do all of these dump with it? If yes, treat them as one position, not five.
Pros manage total portfolio heat, not just single-trade risk. Amateurs count wins. Survivors count what they can lose in one day.
More of this, no fluff, right here.