Share your Money management strategy

[DVlog]

Many will argue about which one should be the priority:

1. Understanding the chart for best Entry and Exit  
2. Money management.

We could keep our opinion aside about this matter for some time and talk about our money management experience and strategy. I think no one will deny that money management is one of the most important things that we need to trade and reduce our losses. It is not possible to be 100% accurate about all of our trades no matter how experienced we are. A combination strategy with our experience in the market and money management skills we could reduce our chance of losses by almost 90%.

Many of us actively trade in the crypto market, so most of us must have our money management strategy to approach the markets. Let us share our money management strategy here so that we can develop or adjust a perfect money management strategy according to our trading behavior. I am going to share the money management strategy that I am using till now.


# Diversify portfolio: I know many people give bitcoin first priority when investing in crypto but I do not trade in the BTC market. Most of my trade is with the altcoin market and here is the strategy I use to diversity my portfolio from small risk projects to high-risk projects.

• Small Risk project: In these lists, most of the coin is for the long term and their market cap must be above 1 Billion. Some project where I think putting money is safe for the long term. 50% of many portfolios for these projects.

• Medium Risk: A project below a 1 Billion market cap is a medium risk project on my list. My investment for these projects is for a few months to 1 year. 30% of my portfolio is for these projects.

• High risk: All of these projects are a startup and their development is still ongoing. Most of the time these entry is for low cap news-based project. 10% many is for high-risk projects.

And I keep 10% of my portfolio in reserve for any difficult situation.


# Investment strategy: Putting all of your bags in a single trade is not a great idea that most new traders do. We have to understand that investing in crypto is not a lottery but a business that grows over time with fluctuations.

• small risk project: When investing in a project I do put money based on risk and their allocation from my portfolio. For the first entry 10% for small risk project from its 50% allocation and keep investing 5% from that allocation in every market correction happens. This continues for every correction no matter what the coin price is.

• Medium risk project: 40% for first entry another 30% for above 25% to 30% market correction and the rest of the 30% cash for the worst-case scenario. If I had to put the last 30% of my money into that project then my aim is to exit at break-even or with small profits.

• High-risk project: 50% for the first entry and another 50% for more than 30% market correction. Always exit with small profits or start booking profit from when trade is on 10% profits.

In most cases, I do not use stop loss because I think it is a proven way to lose money. I do DCA for exiting from a bad trade. I think a plan is better than no plan so make your own money management strategy first before investing in the crypto market.

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[Smartprofit]

The best lesson I ever learned about money management came from the literary hero, pirate John Silver from Robert Louis Stevenson's Treasure Island. 

All his capital (pirate booty obtained during the voyage with captains England and Flint) John Silver divided into three parts. 

1.

He put one part of the money on deposit in commercial banks and receives a large percentage from the deposit. 

2.

He invested the other part of the money in a promising small business.  Silver bought the Spyglass tavern in the port city of Bristol. 

3.

John Silver used a third of the capital to participate in high-risk investments (HYIPs).  In particular, he took part in an expedition to Treasure Island, where Captain Flint buried his treasures.

[mk4]

You’re really not effectively diversifying when you’re just buying other cryptocurrencies. If you want real diversification, buy other assets or invest in a non-public business. Even public companies(stocks) are greatly correlated to BTC.

[AicecreaME]

Money management is an important thing to learn if someone wants to achieve financial independence. It's basically the process and cycle of earning, saving, budgeting, responsible spending, investing, and diversifying your funds to be able to achieve your goal which is to be free from any kinds of debts and loans, and be free of stress that comes along with having financial problems due to mismanagement of funds.

Personally speaking, I track my income and expenses every month to know where my money goes. I also allot a specific rate intended for saving, spending, and investment. Every little cent matters. Hence, it's important to know where you put your money in order to assess if your assets are growing or are you just continuously shedding out. In addition, you should also check from time to time whether the things you invested on are still generating profit or not. This way, you could cutloss if necessary to avoid further losses.

Self-discipline is essential too to manage your money effectively. If you don't know where to set the limit and boundary when it comes to spending, most especially for wants and luxurious items, you'll eventually get lost and will be left empty handed as time goes by. So, in order to make it work for the long run, you should first condition and train yourself to be disciplined and determined. After all, the first step always comes from within.

[batang_bitcoin]

Aside from investing and holding bitcoin, the best asset that one can have is real estate. This is proven and most the billionaires and wealthy people are into it. You get an appreciating asset and you can rent it out which is a great and effortless business. Although it's requiring a huge capital, that's how it goes and if you want to have a passive income, that's the best choice that I can always recommend to the others aside from investing into crypto or doing some staking with alts that are too volatile. And if it's about money management, it's not about how much you earn but how much you save and invest.

[KingsDen]

Money management is a must to succeed, not only in trading but in all spheres of life. You must have to learn manager to succeed in gambling, even when you go for weekend hangouts with your family, there must be a budget for that.

I have used a Money management strategy that field me woefully, after this year I will introduce another strategy, which is save, save, save, then invest and save more and invest.
Saving is a major step in investing.

For trading, I have learnt not to keep coins more than I am able to trade in an exchange because it pushes me to trade with all.

[Dunamisx]

I've been working closely in taking good observation on my investments and trading strategies i use, i keep to ensuring my cost limit is maintained within the profit line, i just don't invest but i took from the profit earned to reinvest on another turn, I don't also don't lend money to make an investment but rather make sure its from my past savings, I don't exceed my budget plan on investment and i make buys when the price is bearish and make sale of my coins when the price runs bullish

[takngantuk]

Many will argue about which one should be the priority:

1. Understanding the chart for best Entry and Exit  
2. Money management.

because these two things determine whether you make a profit or a loss. Money management is very important, especially during a bear market like today. without it one will never know that what they chose was wrong. understand the chart, this is also important. You never know when it's time to enter the market, take profit, cut loss, or the direction of the trend. without knowing this, one will be very worried when they buy/invest even though the market is bull.


I personally always prioritize these two things in my every investment plan. so even though I had a loss, it was within the normal range.

[Apocollapse]

Your investment strategy are good since you're classifying into 3 parts of small, medium and high risk, also doing DCA is good idea too. What I disagree is your portfolio is fully 100% of crypto, you should diversify with the other asset/commodities e.g. gold, stock, real estate etc. Imagine the whole crypto market goes crash for many years, obviously your portfolio will rekt.

[Z-tight]

The best money management strategy is not to invest/trade without having the knowledge required to do so, diversification would not even help without knowledge, because you can diversify and still buy and trade with coins or assets that you shouldn't. So the first step in money management should be research that would build knowledge in order to make the right choices.

[yhiaali3]

In my opinion, money management is more important than technical analysis. If you do not have enough experience in money management and follow a good strategy, you will certainly suffer a lot of loss, and even if you have successful deals, you may lose your money or not be able to keep your profits as a result of poor management, the most important things In my opinion, the diversity of portfolios and the diversity of coins as well. Personally, when I want to invest a large capital, I invest in Bitcoin and the main coins in the market. As for the daily trading, I invest in coins of small value because they are quick to achieve profits, with attention of course to the high risks of such new projects.

[DVlog]

I have used a Money management strategy that field me woefully, after this year I will introduce another strategy, which is save, save, save, then invest and save more and invest.

You can share your strategy here I hope many could learn something useful from it.

Your investment strategy are good since you're classifying into 3 parts of small, medium and high risk, also doing DCA is good idea too. What I disagree is your portfolio is fully 100% of crypto, you should diversify with the other asset/commodities e.g. gold, stock, real estate etc. Imagine the whole crypto market goes crash for many years, obviously your portfolio will rekt.

You’re really not effectively diversifying when you’re just buying other cryptocurrencies. If you want real diversification, buy other assets or invest in a non-public business. Even public companies(stocks) are greatly correlated to BTC.

Actually, my post was only for the crypto assets class. I do not understand or have an interest in other assets class so if you find any part of my strategy useful you can tweak that as your desire.

The best money management strategy is not to invest/trade without having the knowledge required to do so, diversification would not even help without knowledge, because you can diversify and still buy and trade with coins or assets that you shouldn't. So the first step in money management should be research that would build knowledge in order to make the right choices.

Gaining proper knowledge about your investment is essential but that is not related to money management. Money management requires when you have already selected assets to invest in. The first step is to research that project then comes the money management when you have decided to put your money in.

[carlfebz2]

Diversify portfolio and Money management would be the key and of course you should'nt forget about Psychological and Emotional aspect yet this would be also a big factor which could really affect your

decisions and conclusions on which it will might end up such a waste just because you cant think off properly on what or how things should be done.This would really involved lots of trial and errors
on which results or outcome would really be varying on each person thats why we cant draw conclusions yet there are lots of factors to consider for you to look upon.

[mk4]

Actually, my post was only for the crypto assets class. I do not understand or have an interest in other assets class so if you find any part of my strategy useful you can tweak that as your desire.

Doesn’t matter. Unless you’re diversifying(pretty much just derisking) to the likes of USDT and USDC, spreading your holdings to other cryptocurrencies is barely spreading risk that I don’t even know if I would actually even call it “diversification”.

[xSkylarx]

The best money management strategy is not to invest/trade without having the knowledge required to do so, diversification would not even help without knowledge, because you can diversify and still buy and trade with coins or assets that you shouldn't. So the first step in money management should be research that would build knowledge in order to make the right choices.

I don't know but if we talk money management you should already have knowledge on it because that is why money management is that how do you manage when you lose your money , until when you will be staying or stop loss or if what is your target profit so that you will say your money is safe . Yes research is required but there are ton of aspects need to check on this first is you capital and also how volatile you are investing on. But if we are talking money management it should be you have known to invest/trade.

[palle11]

Aside from investing and holding bitcoin, the best asset that one can have is real estate.

This is true and the business is an old one but not many people knew it in the past but now more investors have gone into it.

This is proven and most the billionaires and wealthy people are into it.

Not only the rich but the low income earners do savings in their monthly payment to invest even small by buying small land like a plot, half plot in an area that is less developed because of cost. A factor about buying of land is that it will appreciate with time.

You get an appreciating asset and you can rent it out which is a great and effortless business.

To get estate investment isn't that easy though. Apart from the capital, you also have to be sure of the property, how genuine it is and the agents. All these take efforts to avoid being scammed

Although it's requiring a huge capital, that's how it goes and if you want to have a passive income, that's the best choice that I can always recommend to the others aside from investing into crypto or doing some staking with alts that are too volatile.

It requires capital no doubt on that but you can invest small, run a partnership and gradually grow to get into a big estate investor but I don't think the income is passive because the profit is big depending on the area of property. Rather it is a way of diversification.

And if it's about money management, it's not about how much you earn but how much you save and invest.

If talking about money management base on trading and stock investment, going small is the best. This reducing high risk of losing all capital immediately.

[bitzizzix]

So far I have been quite disciplined and consistent in managing my expenses and conducting regular evaluations, starting with a change in my mindset after reading the book “The Richest Man in Babylon” by George S. Clason published in 1926, where the book is about telling stories about philosophy.
How a very poor person in the city of Babylon could become very rich by adopting some habits.

And my habit is "The Richest Man in Babylon"
1. First Healing: Start making a wallet to be fattened (Set aside 10% of your income regularly to increase your coffers/savings)
2. The second remedy: Control spending (Controlling spending is the key to getting rich)
3. Third remedy: Make your gold double (Make your coffers double by investing and I invest in bitcoin and some altcoins)
4. Fourth Healing: Protect property from loss (Keep property from loss/loss)
5. Healing Fifth: Make boarding houses a profitable investment (Create a place to live that can produce such as making a shop house or boarding house for rent)
6. Sixth Cure: Guaranteed future income (Protect your future income)
7. Seventh Healing: Increases the ability to produce. (Looking for ways to increase income or coffers)

it's not easy but this is where we have to try slowly so that over time it becomes a habit, and I also allocate a monthly badge in a way.
Needs (30%): Expenditure allocation for daily needs
Play Account (5%), Shopping allocation for hanging out and others
Giving (5%), Spending allocation for giving or sharing
Education (15%), Allocation to parents.
FFA (40%): Allocation of expenditure for investment
Savings (5%), Cost allocation for savings.

[Flexystar]

This is good, but only 10% going into reserves is way too less. In the current health horrific world, we need more money to survive. Inflation is getting worst day by day and money management is getting difficult. If we do not have enough fund in the savings then we are really not doing great with our lives. Being student and on part time job I mostly focus on putting more money into my savings jar rather than trading. I know that sitting money is no useful as it won't grow by itself but I also know that trading it with free hands could be very dangerous.

So I am more into savings, long term holding and only selling and buying when the time is right. This is different than trading I believe. Its just growing my bitcoin when time is right or discounted.

[Mauser]

The first and also most import rule for me about money management is: spend less money each than you earn. Only if we have some free money each month to save we can start investing, trading or gambling. For me the best way to do that is budgeting my income and expenses each week. There are quite a few Apps out there who help with that, but I prefer to use an excel sheet. With that I summarise my expenses per month and year and make sure that I don't overspend in a month. It's also a good way to avoid unnecessary purchases and be a bit more disciplined. As a general rule I try to save 10% each month for investing, but lately that wasn't possible so much. Food and living expenses are rising a lot this year and I still have to pay back a loan.

[TribalBob]

I think that's a good strategy that you have described, but for my storage a little bigger than yours 25% of my portfolio, I do that because my needs are extraordinary if I need money / year, and I will definitely take my savings during the year new teaching for schoolchildren later