Many people lose money not because their direction is wrong, but because they do not understand how to manage their positions well.

I have a friend who, when he first entered the market, knew nothing at all, opened leverage randomly, and traded funds haphazardly, losing over 4 million in just a few months. Later, when I helped him review his trades, I realized he didn't lack the ability to read the market; he just completely misunderstood position control. Later, I taught him a simple method for managing positions, and in a few years, not only did he recover his losses, but he also multiplied his profits several times.

So today, I want to share some valuable insights with you; the key factor that truly determines whether you make big money or face liquidation is position management.

1. In spot trading, don't go all in at once; learning to buy in batches is more important.

Take 100U as an example, don't bet everything at once. You can split it into three purchases: first 30, then 40, and finally 30, to avoid buying at the peak and to average your costs during a decline. This is suitable for those who are uncertain about the bottom, especially for those observing the 4-hour chart.

2. Contracts are a double-edged sword; don’t let leverage take your life.

10 times leverage on 10U is equivalent to 100U in spot trading. If you open a position of 100U, you are actually exposing yourself to a risk of 1000U. As long as the market fluctuates by 10%, you could get liquidated. So, don't underestimate leverage; if you're not careful, you could lose everything.

3. Stop-loss is not just about stopping losses; it's your bottom line for survival.

I personally limit my losses to a maximum of 1% of my total capital per trade, so even if I lose 100 times in a row, I won’t go to zero. The key is to retain the qualification to 'try again.' If you want to survive in the crypto world, you must prioritize survival first.

4. Position size is not determined by feelings but by your tolerance for error.

You should open a position size based on how much loss you can bear. For short-term trades, I can enter and exit quickly and may take larger positions, but I never exceed 3 times my full position; anything higher would be unmanageable if a stop loss is triggered. Always calculate your exit strategy.

In the crypto world, it's not about who trades aggressively, but who survives the longest. Manage your positions well; don't be greedy, don't panic, and don't gamble. The larger the market movements, the more opportunities there are. Remember this: if position management is inadequate, entering the market is like sitting at a gambling table.

In the long run, this is even more important than choosing coins.