For my long-time followers, you should have heard me talk about position management methods in the group before, but very few have actually implemented it. Today, I will go through how to manage positions again — the 332 incremental position building method.

Core Idea: Do not speculate on price movements, buy and sell according to your plan, avoid FOMO, and remain calm. So how should we proceed?

1. Positioning: We choose 30% for the initial position: Select mainstream coins (such as BTC, ETH, SOL, BNB). Although these assets have limited short-term gains compared to other altcoins, they have strong resistance to downturns. Other altcoins might rise significantly, but if the market declines, they could be halved in value or even drop by 100%, or be delisted. After selecting good assets, we use 30% of our total funds for the first purchase (this is the initial entry, it shouldn’t be too heavy; later we can choose to average down or increase our position according to market changes).

2. Averaging Down: 30% for averaging down (reducing cost). If the price increases: don’t rush to chase the highs. If the trend is clearly upward, it’s fine to add a little, but you must be able to judge the trend and ensure that there are no negative news factors in the market at that time. Conversely, if the price decreases: for every 10% drop, add 10% of funds until you’ve averaged down by 30%. The logic for this operation is: gradually increase your position during declines to lower the holding cost, leading to higher profits during rebounds.

3. Final Position: 20% for the final entry (add position after confirming the trend). When the price rebounds and stabilizes at key support levels (such as the 7-day moving average), invest the last 20% of your funds. Set a trailing stop-loss to maximize profits.

Some may ask why the 332 positions only add up to 80%, and why keep 20%. My understanding is that we should never go all-in at any time. Keeping 20% as flexible capital allows us to participate in trending projects or respond to any uncontrollable situations that may arise at any time.

Why is this method effective?

1. Do not predict the market, just follow the trend.

2. Build positions incrementally to avoid getting trapped all at once.

3. Lower costs during declines lead to greater profits during rebounds.

Observe mainstream coins: BTC, ETH, SOL, BNB, which are suitable for this method.