personally as an autistic onchain exit liquidity contributor, i...
jack@jacknuked
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Dec 20, 2024
~3 min read
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personally as an autistic onchain exit liquidity contributor, i believe risk management depends person to person, imo there is no general rule to it especially onchain
there are some basics though, so heres a long and boring thread on risk management from my perspective
*sigh*
there are some basics though, so heres a long and boring thread on risk management from my perspective
*sigh*
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first i'm gonna make one thing clear, this is entirely my perspective as an onchainer
i started this from $30 and have spent soooo many hours days weeks and months changing up strategies until they work
so don't take my takes religiously, you are allowed to disagree
i started this from $30 and have spent soooo many hours days weeks and months changing up strategies until they work
so don't take my takes religiously, you are allowed to disagree
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first
gonna go over where your main focus should be and briefly cover position sizing relative to your portfolios
gonna go over where your main focus should be and briefly cover position sizing relative to your portfolios
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and lets split this up in sections, your total port determines how you should manage risk. Let's divide it into 4 parts
- 4 figs (1k to 9k)
- 5 figs (10k to 100k)
- 6 figs (100k to 900K)
- 7 figs (1m to 9m)
etc etc etc
- 4 figs (1k to 9k)
- 5 figs (10k to 100k)
- 6 figs (100k to 900K)
- 7 figs (1m to 9m)
etc etc etc
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before going ahead, if you are sub 4figs and INEXPERIENCED, give this a read
jack@jacknuked
probably hundreds of people have asked me ''i have a low capital, how do i make it with shitcoining?''
being fully real, there's a criminally low chance. Especially if you're new, it's not happening.
But here's my honest advice on what to do and how you could still make it.
Step 1 - Get comfortable with realizing this is how it is.
No amount of irl problems is gonna change it. You won't magically make it overnight with $100 because you have debts to pay tomorrow.
NEVER solely rely on crypto to make a living unless you know you have enough to do so, you do not want a hanging sword over your head and pressure during trades cuz you have to pay for food. that is not the life you want.
See crypto as your secret background project, no one knows about it except you. A secret skill you're mastering behind the scenes.
Step 2 - Master a niche, get really really good at something particular within trading.
When you're low on capital, primary focus should be to get BETTER at trading, not making money. Don't even put money into trades, save up capital for when you're actually decent at spotting plays.
Do you want to get good at swinging stuff? at lowcaps? midcaps? highcaps? pick a niche, go all in. Watch how they behave all day everyday, practice entries and exits (without money).
Have side-hustles to further grow capital during this time, hundreds of projects need web devs, mods, graphic designers. If you have ANY of those skills, utilize it. Be active in public lounges, share stuff, ask for insights, connect on twitter etc etc
Step 3 - Once you're decent at whatever you want to be decent at, and have money saved up on the side, slowly start allocating money into stuff.
On ethereum if you're good at spotting plays, all you need is an eth (atleast)
Even then, you dont have much ammo, maybe 5-10 chances assuming you size your trades that way. Be picky and super strict with taking profits.
Don't under-allocate or over-allocate, find a balance in between so that wins feel like wins and each W increases your port a good percent too. Cut losers really quick, and you shouldn't be firing off into stuff without reason and confidence anyways. Keep growing your port this way no matter how long it takes.
Participate in airdrops, do thorough research on the best upcoming opportunities, twitter is a goldmine for those. Worst case you make a free few hundred, best case you land an easy 4-5fig airdrop which helps you out massively
Step 4 - Once you have a ''good'' port, park a solid chunk of your stack into a long term conviction play.
Hold it till your conviction wears out, and even a 3-5x on a good chunk of your port is gonna be very decent for you.
By that time you won't even need advice from me lmfao you'd be pretty good at making decisions yourself. Starting from 0 gives you amazing skill when it comes to making decisions.
So yeah, this is what i think the safest way to make it is (starting from near zero ofcourse). Maybe you gamble $50 into the next elon shitter and make 6figs, who knows, but i'm giving rational advice here.
being fully real, there's a criminally low chance. Especially if you're new, it's not happening.
But here's my honest advice on what to do and how you could still make it.
Step 1 - Get comfortable with realizing this is how it is.
No amount of irl problems is gonna change it. You won't magically make it overnight with $100 because you have debts to pay tomorrow.
NEVER solely rely on crypto to make a living unless you know you have enough to do so, you do not want a hanging sword over your head and pressure during trades cuz you have to pay for food. that is not the life you want.
See crypto as your secret background project, no one knows about it except you. A secret skill you're mastering behind the scenes.
Step 2 - Master a niche, get really really good at something particular within trading.
When you're low on capital, primary focus should be to get BETTER at trading, not making money. Don't even put money into trades, save up capital for when you're actually decent at spotting plays.
Do you want to get good at swinging stuff? at lowcaps? midcaps? highcaps? pick a niche, go all in. Watch how they behave all day everyday, practice entries and exits (without money).
Have side-hustles to further grow capital during this time, hundreds of projects need web devs, mods, graphic designers. If you have ANY of those skills, utilize it. Be active in public lounges, share stuff, ask for insights, connect on twitter etc etc
Step 3 - Once you're decent at whatever you want to be decent at, and have money saved up on the side, slowly start allocating money into stuff.
On ethereum if you're good at spotting plays, all you need is an eth (atleast)
Even then, you dont have much ammo, maybe 5-10 chances assuming you size your trades that way. Be picky and super strict with taking profits.
Don't under-allocate or over-allocate, find a balance in between so that wins feel like wins and each W increases your port a good percent too. Cut losers really quick, and you shouldn't be firing off into stuff without reason and confidence anyways. Keep growing your port this way no matter how long it takes.
Participate in airdrops, do thorough research on the best upcoming opportunities, twitter is a goldmine for those. Worst case you make a free few hundred, best case you land an easy 4-5fig airdrop which helps you out massively
Step 4 - Once you have a ''good'' port, park a solid chunk of your stack into a long term conviction play.
Hold it till your conviction wears out, and even a 3-5x on a good chunk of your port is gonna be very decent for you.
By that time you won't even need advice from me lmfao you'd be pretty good at making decisions yourself. Starting from 0 gives you amazing skill when it comes to making decisions.
So yeah, this is what i think the safest way to make it is (starting from near zero ofcourse). Maybe you gamble $50 into the next elon shitter and make 6figs, who knows, but i'm giving rational advice here.
6
Playing with a low 4fig port:
- imo, parking a solid chunk of your port into something with conviction and great reasoning is the way
- pull out really quick, 2-4x max you really can't risk holding too long when majority of your port is in a single play
- imo, parking a solid chunk of your port into something with conviction and great reasoning is the way
- pull out really quick, 2-4x max you really can't risk holding too long when majority of your port is in a single play
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- be really really selective, focus on reasoning and rationality instead of charts and candles
- 20% in a play maybe 25%, you gotta risk a solid amount imo to get out of this phase.
- in current conditions everything with an ounce of narrative is running
- 20% in a play maybe 25%, you gotta risk a solid amount imo to get out of this phase.
- in current conditions everything with an ounce of narrative is running
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Playing with a 5fig port:
- if low 5figs keep the same strat mentioned above, but reduce positioning to 10% or 15% per play
- stay super selective still, you can trade charts comfortably with this stack too (buying simple supports and selling res on main runners
- if low 5figs keep the same strat mentioned above, but reduce positioning to 10% or 15% per play
- stay super selective still, you can trade charts comfortably with this stack too (buying simple supports and selling res on main runners
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- around high 5figs gravitate towards trading charts more and follow volume primarily
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Playing with a 6fig port:
- Honestly not even difficult, slow run from here upto 7figs but you have to be committed to the painfully long process
- Honestly not even difficult, slow run from here upto 7figs but you have to be committed to the painfully long process
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- park good size into new main runners if EARLY (you can gauge if its early or no by looking at holders/mc compared to recent high mooners around the same time) and if majority on twt have picked it up already or no
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Playing with a 7fig port:
- seriously? you're 7figs and still dunno how to manage your money? how did you get here? (jk)
- seriously? you're 7figs and still dunno how to manage your money? how did you get here? (jk)
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now some tips and examples on how to manage these trades
- have invalidations for every play ofcourse, don't hold everything you buy to zero, if it aint going your way, pull out
- have invalidations for every play ofcourse, don't hold everything you buy to zero, if it aint going your way, pull out
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- invals can be either vol slowing down, chart losing major supports, legit fud or whatever.
- before entering a trade, MARK out where you'll exit if it doesnt go your way
(i only use stoplosses on older coins, on fresh stuff which comes outta nowhere i ride or die lol)
- before entering a trade, MARK out where you'll exit if it doesnt go your way
(i only use stoplosses on older coins, on fresh stuff which comes outta nowhere i ride or die lol)
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example on what i mean by having invals on chart:
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another one:
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and another (just to give an idea):
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got the idea hopefully, basically use the chart and important levels on it to create an invalidation level. if it reaches there, simply cut and move on
if you have no idea how to draw supports and stuff here's a thread on it too
if you have no idea how to draw supports and stuff here's a thread on it too
jack@jacknuked
alright, gonna go over TA basics in this thread and how you can use very simple TA to get better entries and exits
if you've always struggled to draw your own supports and resistances or were confused about them, this should help you out
*ah shit, here we go again*
if you've always struggled to draw your own supports and resistances or were confused about them, this should help you out
*ah shit, here we go again*
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- other than chart and its levels, monitor tg and twt hype if its a memecoin
- focus on general mkt sentiment when it comes to memecoins too (monitor main runners and its derivs, main runner dipping will slow the others down)
- focus on general mkt sentiment when it comes to memecoins too (monitor main runners and its derivs, main runner dipping will slow the others down)
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- if its a utility thing pay attention to team activeness/if they keep rolling out stuff super consistently
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anyways, very very vast topic so i hope i atleast covered the basic idea of this stuff for you. As you progress i'm sure you'll get an idea yourself on how to manage sizing etc
but yea, a few people wanted me to cover it so i did
and ofc, cyaaa for the next one bros
but yea, a few people wanted me to cover it so i did
and ofc, cyaaa for the next one bros