Why is position planning more important than selecting coins?

As an old investor who has been in the crypto space for 3 years, I once turned a capital of 100,000 into 800,000, but also lost 60% overnight due to holding too many altcoins... It was only after I learned 'position planning' that I truly stabilized my profits! Today, I will share the golden rules I have painfully summarized, which are a must-read for beginners!

Why is position planning 'lifesaving money'?

1. Withstand black swan events: Surviving gives you a chance to turn things around.

Do you remember the LUNA crash in 2022? My friend was fully invested in $LUNA, watching her assets go from 150,000 to zero; while at that time, my position was 60% in mainstream coins + 30% in altcoins + 10% in stablecoins. Although I lost on altcoins, my mainstream coins resisted the plunge, and I only lost 12% in total.

2. Reject emotional trading: Say goodbye to chasing highs and cutting losses.

Previously, when I saw a certain MEME coin surge 300%, I impulsively went all in, and the next day it plummeted 70%! Now, with the '532 rule' (50% mainstream + 30% potential + 20% cash), even when facing a surge, I can calmly increase my position according to the plan, and no longer act as an impulsive trader.

3. Amplify profit ceilings: Dynamically adjusting positions to catch trends.

When AI coins exploded this year, the 20% cash I reserved was just enough to invest in AGIX and FET, yielding up to 4 times on a single coin! If I had been fully invested, I wouldn’t even have had the opportunity to enter, let alone increase my position!

✅ 3 Position Strategies Beginners Must Learn (with practical templates)

1. Conservative '631 Rule' (suitable for beginners)

• 60% mainstream coins (BTC/ETH/SOL): Resisting declines and preserving value.

• 30% blue-chip altcoins (LTC/ADA): Riding the market.

• 10% stablecoins (USDT/USDC): Buying the dip during crashes.

2. Intermediate '532 Dynamic Adjustment' (suitable for experienced players)

• 50% mainstream coins: Long-term holding.

• 30% potential coins (rotating by sector, such as Layer2/AI): Setting profit-taking at 50%-100%.

• 20% cash: Gradually buying the dip when prices drop by more than 20% (e.g., when BTC falls below 250,000, add 5%).

3. Risk control iron rule: No single coin should exceed 15% of total position.

Previously, I heavily invested in a DeFi coin that accounted for 40% of my position, and the project team ran away, resulting in a direct loss of 28% of total capital! Now, no matter how optimistic I am, I only buy a maximum of 10%-15% in a single coin, diversifying risk is the hard truth!

Blood and tears warning: Do not step into these position traps!

Full position in a single coin: Thinking it will double, it may end up at zero.

Using leverage to average down: 10x leverage with a 10% drop causes liquidation, don’t ask me how I know.

Following the crowd and going all in: The 'hundredfold coin' promoted by the community, 90% of them are just schemes to exploit retail investors.