I’ve been discussing with the folks here on stop losses and when people ‘get out’ of toxic trades, and it seem that one of the points consistently put out is that folks should only trade ‘what they are willing to lose’ – i.e spare cash that you should be OK with losing entirely.
While this is definitely one way to ensure proper risk management, the reality is that the concept of what one is ‘willing to lose entirely’ is actually quite nebulous, gray, and can also change over time (e.g new family needs, emergencies etc.).
This also opens up a quite interesting question. As crypto matures as an asset class, it is more comparable to higher risk assets in traditional finance, such as growth stocks (especially emerging tech). It is unlikely that anyone investing into such stocks are investing with the mindset that they might lose their entire principal investment.
Do the folks here really believe that only people with spare cash should trade crypto? If not what kind of advice would you give someone who is trying to grow their money with crypto investments?
submitted by /u/Wonderful_Map_3910
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