A9 Investor Shares 10 Strategies on How to Protect Profits
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A9 Investor Shares 10 Strategies on How to Protect Profits
Be cautious when greedy, and greedy when fearful.
Navigating Web3 tides with focused insightsAuthor: Rocky
In the previous cycle, I successfully reached half of A9, achieving an investment ROI close to 40x. However, due to the May 19 crash and a two-year bear market, nearly half of my assets were wiped out.
Every bull market makes people rich—only for them to quickly lose it all due to overconfidence. Below are my 10 strategies to preserve profits and remain permanently at the table:
1. Intelligent Diversification
Cryptocurrency is a high-risk space. Never go all-in on just one or two tokens—even projects like LUNA, once ranked in the top ten by market cap, can collapse overnight. A balanced portfolio with low correlation among assets is key. Determine your portfolio size and maximum allocation based on capital scale and risk tolerance:
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$50K–$500K: ~10 positions
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$500K–$5M: ~20 positions
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$5M+: up to 30 positions
Focus on areas you understand well and align with core narratives of each cycle. For example, key themes from 2023–2025:
AI RWA DEPIN GAMEFI SOL MEME
2. Regular Portfolio Rebalancing
Investing is hard work—especially in crypto, where conditions change rapidly. Consistently tracking holdings and rebalancing your portfolio is essential.
Use data dashboards that integrate on-chain API data to monitor your positions. Follow official Twitter accounts and community discussions to stay updated on developments.
When certain positions grow disproportionately, rebalance dynamically. Remember: markets rotate. "Trimming peaks and filling valleys" is crucial.
3. Risk Management
Establish practical risk control strategies using BTC as the benchmark. Clearly define risk principles and management plans. Set drawdown thresholds for your total portfolio to avoid losing everything. Ensure separation between risk managers, traders, and researchers—or better yet, automate execution via algorithms. Avoid emotional bias or nostalgia when managing risk.
Our strategy follows the “230 Rule” (similar to hedge funds): issue a warning at 20% drawdown and execute full liquidation at 30%, using BTC as the reference.
4. Be Cautious in Greed, Greedy in Fear
Markets constantly swing between FOMO and FUD. In the unregulated world of crypto, amplified by social media, noise is everywhere. Yet investing often goes against human nature. For instance, on May 1st, BTC dropped below $59,000 amid intense FUD. Many predicted drops to $50K or even $40K—but without logical basis, relying instead on technical chart patterns. If technical analysis alone could beat the market, everyone would be millionaires—especially with today’s AI tools.
Instead, think independently. Combine macro + micro analysis, data, and capital flows to make high-probability judgments. Base your allocations on probability.
Bottom fishing record at $57,000:
https://twitter.com/rocky_bitcoin/status/1787400620619776469?s=46…
5. Monitor Market Sentiment
We profit from two main sources in markets: sentiment and cycles. The former drives sector rotation, often triggered by events. The latter determines position sizing and captures large-scale cyclical gains.
Identifying the start and end points of sector rotations is critical.
For example, BlackRock sparked a surge in RWA, with many RWA projects gaining 3–4x within a week—including GFI, RIO, and others we frequently mention. But after the hype fades, the pendulum swings back. At such moments, doubling down to recover principal or applying dynamic rebalancing becomes vital.
Key indicators:
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Track search volume trends
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Monitor Twitter discussion热度
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Follow smart money movements
6. Stay Hungry, Stay Learning
Focusing on your niche is crucial. “Among thousands of waters, drink only from one stream.”
Everyone has limited energy and learning capacity. We focus primarily on AI, RWA, SOL ecosystem, DEPIN, and GAMEFI this cycle—even though other sectors like Restaking, MEME, and modular blockchains are also hot. We keep exposure minimal.
Best approaches:
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Join an organization where members collaborate, leverage strengths, and share resources
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Build a team—talented individuals thrive together
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Attend events regularly—reading thousands of books doesn’t compare to guidance from mentors
7. Protect Your Assets
Security comes first. Users with over $100K are strongly advised to use cold wallets. All exchanges carry risk. Only when you hold your assets yourself are they truly safe. Learn from institutional practices: they store assets in cold wallets, using exchanges solely as transaction gateways—transferring funds in and out only when trading. Otherwise, assets remain offline. This was the lesson of FTX—many lost everything, including me, who suffered heavy losses.
8. Take Profits
This is critical. Plan ahead for every cycle—know exactly what actions to take when price targets are hit, rather than recklessly pushing forward. In markets, sometimes you charge; sometimes you pause. Pausing is more important than charging.
Our plan:
We will implement profit-taking at two key stages in this cycle:
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Above $120K: sell 10% of position for every 10% rise
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Q2–Q3 2025: fully exit all positions
9. Maintain Patience
Investing is a long-term endeavor. Extend your time horizon and think like Warren Buffett.
Always remember: earning cyclical returns is the secret to lasting success. Cycles move like a pendulum—never stopping. Life is a recurring drama, with changing plots and characters but unchanged core themes. The longest is the Kondratiev wave, nested within Kuznets and Juglar cycles. We continuously move through recession → depression → recovery → prosperity → recession, much like the famous Merrill Lynch Investment Clock. Opportunities always exist. Financial breakthroughs come from riding Kondratiev waves—not effort alone.
10. Physical Health and Mental Stability
Technical skills and knowledge can be learned. But few become consistent winners. The real differentiator? Mindset and health. Skills are variable—anyone can master them given 10,000 hours. But mental discipline is intangible, shaped by both innate talent and continuous cultivation. Most people fail not due to lack of skill or knowledge, but because of poor psychology. It cannot be taught—only realized through repeated heartbreak and market trials.
Finally, wishing you joyful investing and abundant returns in the 2023–2025 cycle! Grateful.
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@Rocky_Bitcoin
