Starting from 100U: A Complete Position Management and Trading Strategy
In the trading market, capital management often determines long-term success or failure more than technical analysis.
Assuming an initial capital of 100U, here is a systematic position management plan aimed at controlling risk while maximizing profit potential.
1. Initial Position Management
Use only 10% of the current account funds as the base position for each trade.
For example:
Starting capital 100U, first trade invested 10U.
This ensures that a single loss will not deal a fatal blow to the overall funds.
2. Dynamic Position Adjustment
Increase position after profit: After the account appreciates, adjust the next trade position to 10% of the new balance.
If the account grows to 130U, the next trade will invest 13U.
Maintain or reduce position after loss: If a loss occurs, maintain the original position or slightly reduce it to avoid excessive averaging down the cost.
3. Building Position in Batches (Aggressive Strategy)
Initially invest 7% of funds (like 7U), and if the price trend meets expectations, add another 7%.
This is suitable for trends that are clearer, reducing the risk of a one-time position building.
4. Stop Loss and Take Profit Strategy
Stop Loss Setting:
Set the initial stop loss 10 points below the entry price to prevent unexpected reverse fluctuations.
After the price rises, gradually move up the stop loss by 5-10 points to lock in profits.
Take Profit Strategy:
Before approaching the target price by 5-10 points, close 70%-80% of the position to ensure some profits are secured.
Continue holding the remaining position and raise the stop loss level; if the new stop loss is not triggered, keep it, otherwise gradually exit.
5. Profit and Loss Ratio Targets
Conservative: A profit-loss ratio of at least 1:1, meaning potential profits ≥ potential losses.
Balanced: A profit-loss ratio of 1:1.5, moderately increasing profit expectations.
Aggressive: A profit-loss ratio of 1:2.6 or higher, suitable for high certainty opportunities.
Summary
The core of this strategy lies in strictly controlling single trade risk, dynamically adjusting positions, and optimizing long-term returns with a reasonable profit-loss ratio.
Although 100U is a small amount of capital, through disciplined execution, it can accumulate gradually, avoiding devastating losses caused by emotional trading.
The key is to stick to the rules and not deviate from the strategy due to short-term fluctuations.
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