Part 8/11:
Assess Tokenomics: Evaluate supply distribution and unlock schedules. Massive unlocks can crush prices regardless of narrative strength. A healthy, well-distributed token float mitigates risk.
Timing and Psychology: The golden rule is to "buy the confusion, sell the euphoria." Entry points are often during the early “confusion” phase when the story is still being understood. Exit during euphoria, when everyone is bullish and headlines are everywhere.
Risk Management and Position Sizing
Because narratives can be fleeting, robust risk management is essential:
- Limit exposure to 1-5% of your total capital per position.