Risk Management That Keeps Me in the Game
I’ve learned the hard way that risk management isn’t a “nice to have.” It is the trade. Before I enter anything, I decide one number: the maximum I’m willing to lose on this idea. If I can’t say it clearly, I don’t take the trade.
For me, position sizing comes first. I keep my risk per trade small (a fixed % of my total capital), then I size the position so that if my stop gets hit, the loss stays within that limit. My stop-loss isn’t about comfort. It’s the level where my thesis is proven wrong. If it’s too tight, normal volatility kicks me out. If it’s too wide, I’m just holding and hoping.
I also respect leverage. It’s not “bad,” but it can force decisions when the market moves fast. I try to use leverage to manage capital, not to increase the size of my ego.
And I remind myself: five alts aren’t diversification if they all dump together. In crypto, correlations spike under stress.
Most importantly, I manage my behavior. I don’t move stops emotionally, and if I’m in drawdown, I trade smaller or trade less. My goal isn’t to catch every pump. My goal is to stay alive and compound.
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