Building a position is like tasting tea, sip slowly; liquidating a position is like escaping, every second counts.
1. Position Building Strategy: Gradually buy low, avoid chasing highs
Operating principle: Divide funds into 3-5 portions, buy in batches when the coin price retraces to key support levels (such as moving averages, Fibonacci retracement levels) to lower the cost of each purchase. Example: After Bitcoin breaks $60,000 and retraces, start by establishing a 20% base position, then add more every 5% drop to avoid being stuck with a large position all at once.
2. Liquidation Strategy: Decisively take profits, cut losses
Trigger conditions: Price increase exceeds target (e.g., 20%) → immediately reduce position by 50%; drops below stop-loss line (e.g., cost price -10%) → liquidate all positions; fundamental deterioration (e.g., project team selling off, regulatory negative news) → exit unconditionally. Tool assistance: Set conditional orders on exchanges to automatically execute profit-taking and stop-loss, avoiding emotional interference.
3. Underlying Logic
Gradual Position Building: Market fluctuations are random, buying in batches can smooth out risks, avoiding “catching the bottom halfway up the hill.” Quick Liquidation: The crypto market has high liquidity and severe price fluctuations, hesitating for 1 second may lead to profit loss or expanded losses.
4. Practical Skills
Before Building a Position: Develop a detailed plan (target price, stop-loss level, position ratio), and record it in the trading log. After Liquidation: Regardless of profit or loss, review decision-making logic within 24 hours, optimizing subsequent strategies.
This morning's market was indeed exciting, leading the fans in the village to short SUI, taking three times the profit while waiting for the next wave. There are many opportunities in the current market, hold on to me, and I'll help you catch the bottom!
