How much is too much?

[wiss19]

How much is too much?  Nothing is ever too much for us man, we all are bunch of greedy and selfish creatures man,. If you study Maslow's hierarchy of needs closely, you'll know that human wants can never be satisfied.

Could you tell how much would be too much for you?

The reply you're looking for lies on your ability to answer the above question ☝️

Yes, humans will never be satisfied but with a decent practice and a stable mindset we will at least know how much is the limit right? We do not have to cross the limits because staying within the means will lower the risk which will save tremendous mental pressure in future. When it comes to profits, there can be no limits but when it comes to risk, we should set a target and limit ourselves so we do not end up losing extra. We should always have a backup plan and a backup plan here can be to limit our risks.

For me, I would personally not risk more than 20% of my total trading volume and would prefer keeping the remaining someplace safe which will not be affected by external factors like exchange hack, etc.

[AakZaki]

(....)
 So I have stopped as of this moment, it's too risky. I might trade again after the bloodbath stops...

I think that's the right choice for now. When the crypto market is bleeding like it is now, with stacked red candles, declining volume, and chaotic sentiment, the wisest thing to do is often protect your capital rather than force an entry.
Sometimes, that pause is actually part of the strategy. Because the market will still be there tomorrow, next week, next month. But the capital lost from forcing trades during extreme conditions often doesn't come back.

Take a breath observe from a distance and wait for the dust to settle. A calm reaction is more valuable than a correct prediction.
If you come back later with a clearer head, that's half the victory.

[osasshem]

So far I have doubled my initial portfolio. And the total amount kept increasing. So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

Having doubled your initial portfolio, I will say taking out your initial capital with some percentage of your profit acquired so far all at once to reduce the rate on transaction fees. A trader's capital will definitely differ from the other, and of such the amount tagged too much will also differ as well, so, as a big trader who trades above $5k - $10k, taking your profits on the ratio of 60:40, where 60% is to be withdrawn and 40% left on the exchange as the need for available funds is crucial for every trader.

[TastyChillySauce00]

So far I have doubled my initial portfolio. And the total amount kept increasing. So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

Having doubled your initial portfolio, I will say taking out your initial capital with some percentage of your profit acquired so far all at once to reduce the rate on transaction fees. A trader's capital will definitely differ from the other, and of such the amount tagged too much will also differ as well, so, as a big trader who trades above $5k - $10k, taking your profits on the ratio of 60:40, where 60% is to be withdrawn and 40% left on the exchange as the need for available funds is crucial for every trader.

Good advice and I actually following this practice but for me taking out principal first is the way, I consider the rest that's still sitting on my futures account as a moonbag or capital to trade again in the future.

This way we really don't have any downside beside losing the profit and that's it. Simple but it's very important to manage the money and make sure we can't go bankrupt with one bad trade.

[reagansimms]

(....)
 So I have stopped as of this moment, it's too risky. I might trade again after the bloodbath stops...

I think that's the right choice for now. When the crypto market is bleeding like it is now, with stacked red candles, declining volume, and chaotic sentiment, the wisest thing to do is often protect your capital rather than force an entry.
Sometimes, that pause is actually part of the strategy. Because the market will still be there tomorrow, next week, next month. But the capital lost from forcing trades during extreme conditions often doesn't come back.

Take a breath observe from a distance and wait for the dust to settle. A calm reaction is more valuable than a correct prediction.
If you come back later with a clearer head, that's half the victory.

That's right, traders must take wise steps in facing the current volatile market situation. Choosing to protect capital or not forcefully enter the market is a very appropriate decision. Here, patience is the key to achieving what you want to achieve perfectly. Choosing to protect your capital or waiting and not forcing entry can also avoid greater losses.
This strategy can also provide traders with the opportunity to observe the market and understand the current trend. They must believe that a pile of red candles will not last forever and that opportunities will definitely come, so they need to be prepared to take them when the time is right.

[SilverCryptoBullet]

That's right, traders must take wise steps in facing the current volatile market situation. Choosing to protect capital or not forcefully enter the market is a very appropriate decision. Here, patience is the key to achieving what you want to achieve perfectly. Choosing to protect your capital or waiting and not forcing entry can also avoid greater losses.
This strategy can also provide traders with the opportunity to observe the market and understand the current trend. They must believe that a pile of red candles will not last forever and that opportunities will definitely come, so they need to be prepared to take them when the time is right.

Traders must do it before time of volatile market appearance because if they did not prepare for it, their trading positions with leverages would be liquidated very easily. With almost 40% fall from all time high price, if any bad traders used 3x leverage for their Bitcoin trading positions, their positions would have been liquidated already. The market only needs to fall down about 30% to 33% from all time high in order to kill those potiions.

To prepare for volatile market, and to defend original trading capital, all traders must use Stop loss order or Stop limit order as these orders are best weapons for traders.

[Finebone]

, I am keeping a decent portion there for obvious reason! So far I have doubled my initial portfolio. And the total amount kept increasing. So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that!

First, it's all depends on your level financially, if you fund you trading account with $50 as example and you have doubled it to $100 or even more as you said, will it be too much to be left in the exchange?
Yes if the $100 or more is a money you can not afford to lose, but no if it is a money that you can afford to lose, so my advice to you is that if you feels like it has rose to an amount you cannot afford to lose, withdraw it and leave the amount you can afford to lose in it, but if the amount is a money you can afford to lose, then their is no point withdrawing it, because you are ready to take the risk anyway.

[slaman29]

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To prepare for volatile market, and to defend original trading capital, all traders must use Stop loss order or Stop limit order as these orders are best weapons for traders.

I can't believe in 2025 people are still talking about SL and limit orders as if they are optional.

There is zero platform now where you can't do these things. Maybe 20 years ago, sure, things were manual for half and especially with orderbook DEX at the beginning.

But now, anyone who trades without these basic basic tools are not trading. They are not weapons. They are basic starting equipment!

[Leahized]

Traders must do it before time of volatile market appearance because if they did not prepare for it, their trading positions with leverages would be liquidated very easily. With almost 40% fall from all time high price, if any bad traders used 3x leverage for their Bitcoin trading positions, their positions would have been liquidated already. The market only needs to fall down about 30% to 33% from all time high in order to kill those potiions.

If a trader short trades, then I don't think there will ever be a problem at this time. Since the bitcoin market is the most volatile, it is natural that not everyone will trade long. Since Bitcoin has already moved to a lot of decline and is now staying. About 40% down from Ath. So if a trader uses 3x leverage in short then there will be no problem. Because leverage up to 5x I think is normal, because there is not much risk involved. If 10x to 20x leverage is used, it is risky and liquid zero is more likely. Yes you are right, every trader should use stop loss. But all those who trade futures, are aware of its use and use it.

[Zigabel]

So far I have doubled my initial portfolio. And the total amount kept increasing. So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

Having doubled your initial portfolio, I will say taking out your initial capital with some percentage of your profit acquired so far all at once to reduce the rate on transaction fees. A trader's capital will definitely differ from the other, and of such the amount tagged too much will also differ as well, so, as a big trader who trades above $5k - $10k, taking your profits on the ratio of 60:40, where 60% is to be withdrawn and 40% left on the exchange as the need for available funds is crucial for every trader.

This is the kind of Idea i will want to work with, if you have doubled your initial capital it can only mean that you have already made 100% so anything there after is some extra more profit, it will be only wise to take off your capital and some portion of your profits from the CEX so you can ensure the safety of your asset to an extent, if you have more in the CEX wallet, you stand a risk of possible over trading asides compromise of the account. If you withdraw some amount, it also adds to your confidence because you know that you are not trading on your funds but some profits that you had made much earlier. personally i will even withdraw as much as 70% so i feel safe enough that i have had a very good chunk of profit so i will be relaxed to take on new and profitable trades. but 60% withdrawal will also not be a bad idea at all if you so desire, but leaving everything there for reasons of having funds available is not ideal.

[Dzwaafu11]

How much is too much should be considered based on how much the person is worth. There are those who consider six figures as a small amount that they can easily gamble on, which means they don't mind even if they lose that amount in trading or in an exchange crash. We also have those who consider it as very huge amount so the amount you should consider as too much to me should be base on your worth, but ordinarily for me $10k is too much to be left on a single exchange.

Exactly my thought, How much is too much for such trader should be considered because the amount of money every trader is affordable to lose is not the same as you said already some traders see six figures as a affordable price that even if it’s gone it’s still normal to them were as some of us can’t afford to lose such amount of money. For me I can tell you $10k is even too much for me to lose I can’t afford to  such amount amount.

As a trader, you need money to be able to trade your pairs and depositing and withdrawing all the time will cost you grease, which will take away most of the profit you will make, which is while we prefer to leave funds on the exchange to make it easier, but for the fear of the unknown, I will advise after taking off some profit out from exchange I will go with the idea of keeping part of my asset that am actively trading in different exchanges to reduce the risk, as I consider the higher amount one have in an exchange account the higher the risk.

Exactly my thought. How much is too much for such a trader should be considered because the amount of money every trader can afford to lose is not the same. As you said already, some traders see six figures as an affordable price that, even if it’s gone, is still normal to them, whereas some of us can’t afford to lose such an amount of money. For me, I can tell you $10k is even too much for me to lose; I can’t afford such an amount.