Requisiem on risk management IN THE TRENCHES EP. 72
by Freddenver: FTX
Requisiem breaks down how he sizes positions after growing a portfolio from $500 into multiple figures. He views everything through percentages. When his capital was small, the amounts at risk were tiny because his primary fear was getting wiped out completely. During that first year, he only staked stablecoins and kept all of them in Luna UST. This happened before the FTX collapse. UST dropped from $1 to roughly 18 or 19 cents. At the time, about 75-80% of his portfolio was in that asset. He doubled down by buying more near 16 cents and sold the bounce when it recovered to 65 or 70 cents. That experience created a lasting fear of losing everything on a single position. Since then, he trades very conservatively. He never risks more than 5% of his portfolio on any one thing. He prefers entering early rather than chasing highs. If an asset is already high, he accepts missing out instead of buying in, trusting that other opportunities will appear later. His advice for beginners is to avoid overextending and not to try topping last, since most people are not rich enough to afford that mistake. He focuses on consistent stacking rather than hunting for extreme multiples. The goal is a growth slope that is steady over time rather than too extreme. You can catch this discussion in IN THE TRENCHES EP. 72 with requisiem.
Transcript (en)
Um, that's a good question. I would say I tend to look at things in percentages. Where. When I start small, I was risking very small. My biggest fear was getting wiped out. There's a little bit of law that I didn't mention, but I used to originally when I started in the first year only stacking stables. and i had all of my stables in terra luna ust okay and for those who don't know that was before the ftx collapse where ust went from one dollar down to about i want to say 18 cents or 19 cents and i had about 75 to 80 percent of my portfolio in it and uh i actually doubled down and bought some at like 16 cents and ended up selling the bounce when it went back to like 65 or 70 but after that i think that put kind of a fear in me where i never wanted to be in the case where i could ever lose it all again on one thing so after that I tended to trade very very conservatively I would never risk more than I would say 5 of my port no matter where I was in anything. I would only risk a really small amount, and I would always want to be early. If something is high, I would just cope about it, but I would never buy it. i would just let it be because there'll be something else that comes later if someone was starting off and they asked me what my biggest advice would be it would definitely be not to overextend yourself and probably not to top last either the you're not rich enough to do that that would be what i say but uh i think having that mindset where I just need to consistently stack even if I'm not making that much multiples. That's what kept me going. I really wanted a slope that wasn't too extreme but was a bit consistent over time.
