Capital Preservation First (Defined Risk on Every Position)$BTC
In 2026, volatility is no longer an exception—it is the baseline. The primary risk is not missing upside; it is irreversible capital loss.
Core principles
Predefine maximum loss per position (e.g., 0.5–2% of total capital).
Use hard invalidation levels, not “mental” stops.
Size positions based on volatility, not conviction.
Why this matters Conviction is not a hedge. Most blow-ups happen not because the thesis was wrong, but because the position size made being wrong fatal.
In 2026, volatility is no longer an exception—it is the baseline. The primary risk is not missing upside; it is irreversible capital loss.
Core principles
Predefine maximum loss per position (e.g., 0.5–2% of total capital).
Use hard invalidation levels, not “mental” stops.
Size positions based on volatility, not conviction.
Why this matters Conviction is not a hedge. Most blow-ups happen not because the thesis was wrong, but because the position size made being wrong fatal.