Position management is your invisible money printer
The sharpest tool in the crypto world is never K-line technology, but position management. I've seen too many people who are right about the direction but end up liquidated, and the root cause lies in four words: going all in.
1. The dividing line between gamblers and those with longevity
Once, a fan privately messaged me in tears: lost 4 million in 3 months, not because he couldn't read the charts, but because he was always fully invested. This is reminiscent of the typical symptoms of a novice: treating the crypto market like a casino and viewing the principal as play money.
Later, he adopted the "33-33-34" position-building method: splitting 100U into three parts of 30-40-30, adding to positions to lower costs during declines, and ultimately making double profits in a bear market.
2. Leverage is a nuclear bomb, not nunchucks
A 10U position with 10x leverage actually exposes you to a risk of 100U.
Data from a certain exchange shows that 90% of liquidations stem from misuse of leverage.
Remember this formula: Real Risk = Principal × Leverage × Volatility. When BTC fluctuates by 5%, 10x leverage means a 50% account risk—how is this different from gambling?
3. Stop-loss lines are lifelines
The iron rule for professional traders: single loss ≤ total capital 1%. This means that even if you lose 100 times in a row (excluding extreme black swan events), you still have the capital to make a comeback.
A leading quantitative fund once revealed: what they are most proud of is not their annualized 300% return, but that in 5 years they have never triggered a 2% single-day drawdown.
4. Tolerance for error determines position weight
Before heavily investing for short-term gains, ask yourself three questions:
How many points of reverse fluctuation can you withstand?
How long will it take to recover the principal after liquidation?
Will this loss affect your mindset?
When you can handle a 20% drawdown with 3x leverage, you truly deserve the words "heavy position attack".