If you are trading microcaps you are wasting your time if you aren't implementing a crazy amount of risk management. Every single token is different and every position size should be different. You should be using a rating system of some sort. Let's stick with a 1 to 10 system. 1 would be a brand new launch, a token without a website, no track record for the dev, project launched out of nowhere, high taxes, bundled supply, etc. Basically a giant red flag until proven otherwise. A 10 would be like Bitcoin and probably no project would be a 10 but let's say basically it's a project you'd be fine giving your keys to the dev, they know where you live, and you'll be a groomsmen at their wedding. Basically you full on trust them or have seen years of proof and trust that their intentions are good. Now that you've got a ranking system you need to come up with a unit or amount of money that's comfortable for you. This is an amount that you'd be upset losing for 5 minutes then get over it. For some it could be 1 eth, maybe its 0.01 for others, but I'd say it's probably about 0.25 for most that trade microcaps. So let's say you have about 3 eth and want to trade microcaps. You are going to assume that 0.25 is your base amount for trading. It's an amount that would make you excited if doubled not devastated if lost. Level 1: You are going to try as hard as possible to not waste time with tokens you rank 1 or 2 BUT these can sometimes do well. These are going to be trades that either rug or 10x. Therefor you are only going to risk 0.1 and only ever take 2 or 3 of these at most at one time. Plan on losing So 0.3 eth is going to 3 plays that are new launches, could be big if dev doesnt rug, or has some red flags but maybe it's a gem. You are going to buy and forget about these plays. Two will rug, and one should maybe turn out legit and get you a 5x or 10x. These plays are your GAMBLES, use them to scratch that itch and get it out of your system. Level 2: These are going to be tokens you rank 3 to 6. The average ones. The boring ones. The tokens where they've done well on a dip but you dont know if its going to zero or about to take off. Dev is building but is it going to be a runner or dud. Theres good things about it but maybe market conditions aren't ideal. You are looking for 2x plays on these. I've caught 100x plays just looking to flip these boring ones. Thats never the goal but sometimes you get an entry and then watch Twitter discover and send it. Sizes of 0.25 eth, your base unit. You are looking for about 4 plays (30% of your microcap portfolio). You aren't trying to be greedy, you just want to see some double. Can rotate into other ones or hold ones that show strength. Not selling because it's boring because you knew these were going to be boring trades. Selling if something happens or it's just bleeding day after day. Level 3: These are the plays where you are fine throwing 1 eth at. The 7 to 10 range. Projects been around for a year, team has gone through it all, and they've caught plenty of attention even if price is flat. People neglect these plays because they think that they can't make money on them. Wrong, you'll make the most going big on higher marketcaps (slow at first but give it time). You aren't going to get a 100x on these ones (if one ever becomes an altcoin you can probably retire though) but that's why you are going with size. You are going to have the mindset of 50% returns. A 50% with 1 eth is 0.5, which is the same as one of your gambles pulling a 5x. The difference is the Level 3 play (7 to 10) is going to have a lot less risk. Obviously there's risk in all these plays and your highest ranked one could rug or get hacked but that's why you are diversified. So, in this example a 3 eth wallet would ideally have 3 gambles at 0.1 eth each. 4 boring 0.25 plays, and then 2 big boy plays with about 0.75 each. Maybe only one you really trust with 1 eth. And always have 0.5 ready for an opportunity.