Thread by @iamkoshiek

When you're trading/ investing few things matter as much as size (size matters!)

100 bucks at a 80% return = 80 bucks
1000 bucks at a 10% return = 100 bucks

With a smaller account you find folks take on disproportionate risk instead of preserving capital - it usually ends badly

I bring this thread back at least once a month

https://twitter.com/iamkoshiek/status/1332183391702298624?s=20

Blackrock has $9.496 trillion in assets under management

Tag a % fee on that quantum & you can quickly see how size matters (& we aren't even counting the juice from front running Fed purchases)

So when you're capital light one way to upscale is to add leverage as a multiplier

5x leverage on 100 bucks is 500 bucks of equivalent/ synthetic exposure

But now you have to fund an account with enough safety cash (margin) & this extra 400 bucks isn't free

The worst part of trading the current market with the high volatility is you can actually be short term right (directionally) but it just takes one large move to wash you out of position

crypto liquidations are a great example, it's painful & unnecessary

Drawing my first salary out of @Banker__X soon

For the last 18 months I've kept the lights on by trading stonks, crypto, NFTs, fuck... everything & it's worked out pretty well... BUT I don't recommend it as a startup funding idea

Pls just ask your parents & friends for money

This is the unsexiest advice ever but how much you stand to lose is more important than those juicy gains

If you're risking 100k on a security with 30% daily moves just to squeeze out a 4% gain, it's straight up gambling & it's a bad gamble

In true degenerate fashion I don't think there's anything off limits when it comes to speculating - if there's little person boxing I'd bet on it

Just make sure it's money you're willing to lose & won't mean you sleep under a bridge

10/10 times I'd pick a speculative stock (or crypto) over Betway

Personally found the payoff to HODL vs. striking out on an accumulator bet is massively disproportionate

Most people think "it's only 10 bucks" & that's lottery type thinking - you're defined by a single outcome

on an expected value basis, an accumulator bet will never make sense but you see ONE person win & it completely blinds your view on risk

The problem with single outcome/ binary bets is exactly that - you either make bank or lose 100%

The likelihood of a meme stock going to zero is considerably lower. It's not impossible but it's far more unlikely

Buy it, set a price target, forget about it

Trading frequently looks sexy but it's also expensive (trading fees), you have to constantly shape you position & it's easy to get it wrong

"not trading" is boring, but that's when you clock those periods when $TSLA goes up 40% in a month

thread on position sizing, covered this in detail before

https://twitter.com/iamkoshiek/status/1433350647852814339?s=20

both @AskAkshayKaran & I use this system of rebalancing our own portfolios in this thread (marriage stocks/ casual dating/ one night stands) - incredibly useful

https://twitter.com/iamkoshiek/status/1444259327125200900?s=20