Is capital protection necessary now? It is pointless to be 100% exposed in times of greed; even if the profit were 100%, your assets could go from $1000 to $2000 in a few weeks. This is true, but price drops could lead to losses of 50 to 90% depending on the risky assets you hold. Doubling to 2000 and then falling to less than 1000, is it worth the risk of overexposure?