Barbell Principle.

A barbell is a barbell with weights added to both ends for weight lifters to use. The barbell consists of 2 extremes, with very heavy weights on both ends and nothing in the middle. The barbell principle means separating extreme situations.

For example, in the cryptocurrency world: 90% of funds are held in cash, posing no risk, while 10% of funds take extreme risks. In this case, although both are very extreme, your maximum loss is controllable, which is just 10%, but your potential gains are unlimited. The barbell principle compensates for the problem of black swan events, which are immeasurable in risk and easily affected by misestimation. It can limit the maximum loss.

Never go all in. Ensure there is enough redundant capital in your position. The best trades are always defensive rather than aggressive. In a market where black swans frequently appear, preventing low-probability events and ensuring survival is the top priority.