333 Position Control Method
This is a very complete trading system, suitable for short-term, medium-term, and long-term trading, and can be used for both buying and selling points.
Having walked through stocks, futures, and gold, I found that the most interesting market is the cryptocurrency sector. The charm of the crypto market lies not only in the T+0 trading mechanism but also in the infinite possibilities of this market. The main gameplay focuses on mainstream coin spot trading, and after solidifying the foundation, engaging in contracts is just the icing on the cake. Starting with small capital and low leverage to control risks while ensuring the principal allows for controllable trading.
The 333 position control method, simply understood, means that if the position is ten layers, you first buy 3 layers, then buy another 3 layers, and finally buy 3 layers again, hence it is called the 333 position control method.
Importance of the 333 Position Control Method
1. Successful investment = objective and concise rules + patience to wait for opportunities + rational position control + decisive quick stop-loss + courage to expand profits.
2. The crypto market is essentially about going short or going long, but in such a random stock market, as long as you manage your position well, you can still make money.
3. Position management is the technique of deciding how to enter in batches, and how to set stop-loss and take-profit levels when you decide to go long on a particular investment. It’s important to manage every step of entering, stopping losses, and taking profits well.
First, perform 3-layer operations on selected stocks, and reduce positions appropriately during the first rise.
After adjusting, if a golden cross appears, you can add to your position, and during the second rapid and high rise, you can sell high.
This achieves reasonable position control and effective profit.
The 333 position control method not only effectively controls positions and stabilizes profits but also has another use, which is to relieve from being stuck.
1. If you are stuck at a high position, perform a reasonable first add-on according to the 333 position control method.
2. Control position and reduce holdings when rebounding to high positions.
3. Cycle this way, continuously adding and reducing positions, successfully using the 333 position control method to relieve from being stuck, and subsequently achieving a successful relief.
Precautions for the 333 Position Control Method
1. Buy decisively in 3 layers for stocks you are optimistic about.
2. Stocks you are optimistic about must be analyzed and judged comprehensively, rather than buying any stock you see at random.
3. No matter how good it is, there is a probability of decline, so if you have selected well and it really falls, you will need to make alternative arrangements.
Tip: When buying a cryptocurrency, never exceed 70% of your capital, and never go fully invested. The remaining 30-40% of the position should be used for high selling and low buying during price increases to lower costs and increase returns.
