This is the most common and important rule in the world of investing. Its very much a pity why many people say this without practicing it. This is the ever first rule in investing. Do not be willing to risk much in investing. Always invest within 2-3% of your total portfolio so that you won't be emotional with it
What if my whole portfolio is in cryptocurrencies and 90% of it in BTC? Should I be emotional about it?
Many people wants to get rich quickly with crypto and they over leveraged which results in huge loss when market turns against them. Crypto is highly volatile and the best advice is not to chase the boat and buy any crypto that is heavily pumped. Don't go all into crypto and invest the amount you are comfortable with.
Good advice, but remember that most of the investors came to cryptos from stocks or forex or had no prior experience. So what does it mean heavily pumped? In stocks a gain of 100% would already be huge. 200% would be a bubble waiting to burst. For cryptocurrencies 300% is nothing. The fun starts after 500%
After seeing this most of them lost track of when to get out. Trust me, I've been there. Sold at 50% gain, got back at 60%, sold at 80 and soon. Finally somewhere along the way at 300% gain i Just stopped counting and chose long position that took me another 300% up in 6 months. Now, after a year of bull market, when do you get out?
Usually you don't until you're back at the bottom of the slope.
