When you are optimistic about an investment product, how much capital should you invest?

I have been lucky recently and successfully took profit on two junk coins and stopped loss on one junk coin at the same time. However, the capital invested in stop loss was large, so I won two and lost one of these three coins, and I still lost money in the end.

Therefore, the win-loss ratio is 2:1 , but the actual loss is.

Investing is always like this. When you make money, you regret that you didn’t invest enough capital and that you only invested 10U God of War in the first place . When you lose money, you regret that you impulsively invested the money for food.

If you do this, you will not be happy whether you win or lose in investment.

When you work hard to mine a good coin, how much money should you invest in it?

I think when it comes to investing, most people shouldn't go all in on an investment idea , no matter how much you believe in the opportunity.

There are only a very few people in this world who are capable of putting their eggs in one or a few baskets, and then carefully nurturing these few baskets, thereby achieving successful investment results.

This is already supported by enough theories and cases.

So how much money should be invested?

A common strategy is to invest a percentage of your available funds, and I used to allocate funds based on this idea .

For example, there is a very popular Kelly formula (there is a page for it in Vespa), which is used to calculate the proportion of funds that should be invested in each gambling bet. Many investors cite it as the principal consumed for each investment.

A more common way to use it is to simply take a ratio, such as investing only 10% of the remaining principal each time .

I think this strategy of betting at a specific ratio is also good. However, this year I tried a new method, and so far, I feel that it has made my investment mentality much better, so I would like to share it with you.

Every time you encounter an investment opportunity and need to calculate the principal to be invested, what you really need to measure is how long it will take you to earn back this principal amount.

For example, if you earn 10,000 RMB per month (there is probably an average for freelancers) , and now you plan to invest in x coins, you need to consider how many months of salary you plan to invest, and if you make a mistake, can you accept working for nothing for a few months?

In the same way, when you decide whether to take profit, you can calculate how many months of rest this order can give me? Or, is it equivalent to adding a few months of salary to your year-end bonus? Of course, this is not the only determining factor, but it is a calculation that will give you a better mentality.

Conversely, when you are deciding whether to stop loss, you have to calculate whether you can accept working for a few months in vain, and how many months you may have worked in vain if the price continues to fall without stopping loss. Can you accept it?

I think this way of thinking gives me a better mentality. I won’t regret investing too little when I make money, or regret investing too much when I lose money.

As for why? I think it’s just a feeling, and I can’t really explain it.