Investing Rules: How to Stay Safe While Building Wealth
***DISCLAIMER : This is not financial advice. Purely my rules for myself especially with the last few week’s volatility***
When markets move fast, it’s easy to get swept into fear, excitement, or impulsive decisions. Clear rules protect your money, your nervous system, and your long-term goals. These are the investment guidelines we use inside fireyfemmes to keep risk contained and confidence high—especially when dealing with volatile assets like crypto, altcoins, or high-risk stocks.
These rules are simple, repeatable, and designed to help you grow your wealth without losing sleep.
1. Know Your Allocation Limits
Your risky investments—crypto, altcoins, speculative stocks—should never exceed 5–10% of your total net worth.
This ceiling keeps your core wealth safe while still allowing room for upside.
2. Set Your Drop Tolerance Before You Buy
Every asset class behaves differently. Knowing what’s “normal” helps you avoid panic-selling when prices shift.
Bitcoin / Ethereum: Expect swings of 20–30%.
Altcoins: Can fall 50–60% and still recover.
High-risk stocks: Moves of 20–30% are common.
You only take action when the movement goes beyond what’s typical and the fundamentals have changed. Not every drop is a red flag.
3. Use Clear Stop-Loss Boundaries
To protect your capital:
Altcoins: Sell if down 70% and fundamentals deteriorate.
Risky stocks: Sell if down 35% and the thesis no longer holds.
Stop-losses are not emotional decisions. They’re pre-agreed safety rails.
4. Take Profits Systematically
Growth is only real when you lock in gains.
We follow a simple framework:
Crypto:
Take 20–30% profit every time the asset doubles.
Altcoins:
Trim positions at +50%, +100%, +200%, and beyond.
High-risk stocks:
Take partial profits around 40–50% gains.
Profit-taking protects you from the “round trip”—watching a winner turn back into a loser.
5. Don’t React to Fast Drops
If an asset falls sharply—
10% in a day or 20% in a week—
you pause for 72 hours before doing anything.
Sudden drops are often temporary or news-driven.
Reacting immediately usually leads to regret.
6. Only Add on Strategic Corrections
You never buy because something is going up.
You only add when:
Prices are down meaningfully
You are below your position-size limit
Fundamentals are still strong
Your emotions are calm
This keeps you disciplined and avoids chasing momentum.
7. Define Your Maximum Position Size
No single speculative asset should ever represent more than 1% of your total net worth.
This prevents over-exposure and protects your broader wealth plan.
8. Avoid Emotional Trading
You don’t make investment decisions when you’re stressed, excited, anxious, or optimistic.
You only follow your system.
If your emotions are loud, the rule is simple: do nothing.
9. Diversify Your Platforms
Never keep all your crypto on a single exchange or platform. Spread your holdings to avoid counterparty or platform risk.
Stablecoins, despite the name, also carry risk—treat them as part of your speculative bucket, not as cash.
10. Review Monthly, Not Daily
You reassess your portfolio once a month, not every time the market moves.
Monthly reviews reduce stress, improve clarity, and keep you aligned with long-term goals.
The Fireyfemmes Philosophy
Your goal is not to outsmart the market—it’s to create clear rules that protect your wealth while allowing it to grow.
These investment rules are here to help you build confidence, reduce emotional decision-making, and create a healthier relationship with money. Wealth expands when you have a calm system, not when you chase every movement.
