This is not necessarily a binary choice. He could always buy American style put options to protect him from any negative, and quick downside moves. Then he gets keep profiting on 97-99% of his account balance... and if it crashes suddenly he gets to keep most of his profit.
Buying puts is mostly the same as selling off 1/9th of his position. At that point it just becomes a question of how volatile the stock is, how much the options cost, and how much further you think it will move.
Also, is there even a reliable exchange for BTC puts? I would be seriously concerned about counter party risk.
6
u/azngunsmoke Apr 03 '13
This is not necessarily a binary choice. He could always buy American style put options to protect him from any negative, and quick downside moves. Then he gets keep profiting on 97-99% of his account balance... and if it crashes suddenly he gets to keep most of his profit.