The biggest risk when playing memecoin is earning a hundred times and then getting wiped out by a trash coin. So you need to learn the 433 rule.
When you identify a target, don't obsess over the price; enter the market first. Divide your principal into ten parts, and initially invest 4 parts as your main position.
If the market keeps rising? Stop adding to your position and take profits gradually and honestly. But if it continues to decline, with a retracement of 30% to 50% (adjusted based on the coin's characteristics), add 3 more parts. At this point, you've already invested 7 parts.
If it keeps falling? Drop another 30% or more and use up the remaining 3 parts. The ten parts of your funds are now fully invested.
What if it falls further? Then stop. Don't move anymore. This indicates you've misjudged, and you're dealing with a real trash coin. Instead of continuing to throw money in, better to accept defeat.
With this approach, you won't miss out on good coins, nor will you endlessly try to rescue yourself from bad coins. The key is to set a psychological stop-loss level and not let a single mistake ruin your overall gains.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
6
Repost
Share
Comment
0/400
governance_lurker
· 15h ago
The 433 rule sounds good, but how many people can really stick with it? I haven't missed out on coins, but I always end up losing everything with a shaky hand.
View OriginalReply0
LiquidityWitch
· 15h ago
ah yeah the 4-3-3 grimoire... brewing alpha through calculated liquidation sacrifices. been there when the alchemy goes wrong tho ngl
Reply0
WagmiAnon
· 15h ago
The 433 rule sounds good, but frankly, I've seen too many people lose everything by following this theory. The key is still to have strict stop-loss measures.
View OriginalReply0
TokenSherpa
· 16h ago
honestly the 4-3-3 framework just sounds like... averaging down with extra steps, ngl
Reply0
GasOptimizer
· 16h ago
The 433 rule is essentially data-driven risk stratification, which I like. But the key lies in execution—most people start to falter after the second addition.
View OriginalReply0
alpha_leaker
· 16h ago
The 433 rule sounds good, but I trust intuition more when it comes to investing more money. But on the other hand, you really need to have a mental stop-loss; otherwise, a bad coin can really wipe out all your gains.
The biggest risk when playing memecoin is earning a hundred times and then getting wiped out by a trash coin. So you need to learn the 433 rule.
When you identify a target, don't obsess over the price; enter the market first. Divide your principal into ten parts, and initially invest 4 parts as your main position.
If the market keeps rising? Stop adding to your position and take profits gradually and honestly. But if it continues to decline, with a retracement of 30% to 50% (adjusted based on the coin's characteristics), add 3 more parts. At this point, you've already invested 7 parts.
If it keeps falling? Drop another 30% or more and use up the remaining 3 parts. The ten parts of your funds are now fully invested.
What if it falls further? Then stop. Don't move anymore. This indicates you've misjudged, and you're dealing with a real trash coin. Instead of continuing to throw money in, better to accept defeat.
With this approach, you won't miss out on good coins, nor will you endlessly try to rescue yourself from bad coins. The key is to set a psychological stop-loss level and not let a single mistake ruin your overall gains.