In investment trading, how can one both achieve profits and avoid getting trapped? Today, I would like to share with you a set of position management strategies that I have long practiced and found effective.
Core Operation Points:
1. Accurately selecting entry points: When opening a position, it is crucial to follow the principle of 'going long at support levels and going short at resistance levels,' avoiding blind trades at other positions. Extensive practice has proven that operating at these key points can yield a win rate of up to 80%.
2. Using BTC trading as an example to illustrate position allocation: Suppose you plan to use 5% of your total position for trading. If you choose to short, you can open a position near the resistance level of 95,500. If the price does not break this resistance level, you can profit smoothly; if BTC breaks 95,500, you can add to your position at the subsequent resistance level of 96,200. In this way, the average holding price will change to 95,850. When BTC reaches the 96,200 resistance level and retraces, and the price falls below 95,850, you can take profit on half of your position. At this point, the position still remains at 5%, but the average holding price has been optimized. If BTC fails to break through 96,200 again, you can reap a profit of 3,000 dollars; if the price continues to rise, you can follow the same logic and add to your position at subsequent resistance levels, achieving the goal of not missing out on the market while steadily profiting.
Important Reminder: Replenishment operations must be conducted near resistance levels, as the likelihood of price retracement is highest at these points. At the same time, setting stop-losses is essential. Although the probability of extreme situations where the market experiences consecutive significant surges (rising several thousand dollars at once) is less than 10%, a reasonable stop-loss mechanism can effectively control losses and ensure capital security to mitigate such risks.
