Build Winning Positions

A strategy for building investment positions by scaling into winning trades rather than taking quick profits. Based on Pomp's Solana trade experience.

Core Position Building Strategy

• Start with a small initial position to test thesis
• Add to position when trade moves favorably rather than taking profits
• Use price confirmation as validation to increase position size
• Focus on timing of entry/exit based on market cycles rather than specific price targets

Real Example: Pomp's Solana Trade

• Initial entry: Bought small position at $48
• Second entry: Added more at $55 when price confirmed upward movement
• Third entry: Converted all ETH to SOL at $73
• Fourth entry: Added more at $80 during 30% drawdown
• Result: Position grew significantly as SOL reached $190+

Key Principles

• Treat holding an asset as an active daily decision
• Don't let tax implications prevent proper position management
• Use market feedback to validate investment thesis
• Consider market cycles more than price levels for exits
• Have clear timeframe expectations for different types of positions
  • Trading positions: 6-12 month horizons
  • Long-term holds: Multi-year or indefinite holds (like Bitcoin)

Psychology Elements

• Must learn proper position sizing through experience
• Need conviction to add to winning positions
• Important to distinguish between trading positions vs long-term holds
• Requires discipline to stick to original thesis
• Need comfort with larger position sizes as trade works

Exit Strategy Focus

• Base exits on market cycle timing rather than price targets
• Consider broader market conditions over individual asset pricing
• Plan exit timeframes in advance
• Be willing to exit regardless of price if timing aligns with strategy