I have seen too many people die over unrealized gains. A friend of mine is a living example.

At the end of 2022, he went all in with 100,000 to buy BTC, with a cost price of 17,000 dollars. By March 2024, when BTC reached 73,000, his account had directly grown to 430,000. I advised him at that time: "Dude, take the profits and be safe." But he insisted on waiting for 100,000 dollars and held firm.

So what? In August, BTC dropped to 49,000, and the account shrank to 290,000, yet he kept saying "it's going to rebound soon." In November, BTC really broke 100,000, and the account soared to 590,000; this time he set his sights on 150,000 USD. Now it has pulled back to 91,000, and the account is back to 530,000. From 430,000 to 530,000, after more than a year of ups and downs, he only made a lonely profit.

In simple terms, the problem lies in being fully invested. Retail investors are truly fully invested, eager to leverage their positions; when institutions say they are fully invested, they still hold 30% cash in hand. This is the difference between professionals and amateurs—not courage, but discipline.

Over the years, I have developed three practical strategies:

**Bottom Build Position 333 Rule**
Cut into three parts, each part is one third. In 2022 when I bought the dip for BTC, I invested 150,000 in three batches: first, I threw in 50,000 at 17,000 to test the waters, then added 50,000 when it dropped to 16,200, and finally added the last 50,000 when it rose back to 17,500, with an average cost of 16,900. With this strategy, if it dropped, I had the ammunition to buy more, and if it rose, I wouldn't be anxious.

**Position Management Rule 721**
70% long-term holding of the base position, 20% for swing trading to lower costs, and 10% cash for emergencies. Having grain on hand means that a market crash is a buying opportunity; those fully invested can only watch helplessly.

**Take Profit Management Rule 251**
Double the investment and take out 20% to break even, sell half at 5 times to lock in profits, and completely liquidate at 10 times.

If the principal is small, it is better to operate in batches. What to do if the position is already full? Sell 20% first when it rises by 10%-15%, then buy back during the pullback, and gradually adjust the position.

These rules are simple to say, but the difficulty lies in controlling desires. It is recommended to write 333, 721, 251 on sticky notes and stick them next to your computer to see them every day. Position management is not about making less money; it is about surviving first—only by being alive can you have the opportunity to make big money.