Had a Q about why I'd bother to buy Ubiq (only 50m cap) so I'd like to share this pyramid that will try to explain my risk philosophy

PURPLE - this represents probably 40-60% of your capital. It is reserved for the lowest risk shit possible. Lending, long term BTC hold, etc

ORANGE - increase the risk, decrease capital. ~30% now. This is dedicated to super high caps (BTC, LTC, ETH) and is more active than purple.

GREEN - Around 15% of capital dedicated to this block. Higher risk but higher potential reward. Alts, but "legit" or other good setups.

YELLOW - 5% of your capital. Small caps, high leverage margin trading. Full fucking gambling. Huge reward if win, but super risky.

This way your bad choices do not fuck your portfolio, you are not exposed to risk as heavily, but you benefit from the markets as a whole.

If the 0.5% of your portfolio from YELLOW goes to shit, who cares? No impact. Purple makes it up. But if it goes 10x -- nice 5% increase.

These are FUCKING BASICS in risk and portfolio construction, this is not some mad genius science. But if you don't do it yet, start today!

Any questions about this AMA i'll be nice for the next 5 minutes and then i'm going to get high

BTW, your "segments" should be hard rules. If you want another yellow, but you're maxxed out at 5%, you should close a different yellow.

This means youre constantly reevaluating your trades, putting your capital to the best usage, and betting on what you think is best R/R.