0% liquidation, shorting with 5x leverage and the price rises by 20% leads to liquidation.

🧐 Its value is the same, but the liquidation price will be different. For example, if you have a capital of 10,000, with 1,000 at 10x leverage you have ten opportunities to open positions, while with 2,000 at 5x leverage you only have five opportunities. With the same value of profit, which would you choose?

🌟🌟 In the 👃🏻 circle, if you manage your positions well, you will outperform the majority.

‼️ Position management refers to a specific plan you set for opening, increasing, reducing, and closing positions when you decide to trade cryptocurrencies. Good position management is one of the important means to avoid risks, able to minimize losses and maximize profits!

‼️ How should positions be managed? Is there a standard? Many traders fail, and one of the key reasons is that they treat market analysis as the entirety of trading, as if analyzing the market is enough to decide the outcome. In fact, market analysis is just the most basic work; what truly determines the outcome is the work that follows the analysis, which is what you consider after entering the market.

Position management includes capital management and risk control. More importantly, when to increase positions, by how much, where to reduce positions, and by how much.

The complete trading process should be:

1️⃣. Market analysis, you can use any technical analysis.

2️⃣. Position management. After entering the market, we need to consider what might happen next. What to do if we make a profit? Should we increase our position, take profits and exit, or continue to hold? What if we incur a loss? Should we stop-loss, or hold the position, or partially exit first? How much of a loss would lead to a complete exit?

3️⃣. Strictly execute trades. Once your plan is clear, you must start implementing it without letting market fluctuations disrupt your thinking.

4️⃣. Trade summary, after completing a trade, a review of previous trades is necessary. The review should encompass trends in rising, falling, and volatile markets. When the market is above the support line, the trend is upward; when the market breaks below the support line, the trend is downward. More importantly, the support line is also the basis for defining potential risks. When the stop-loss is placed below this support line, the potential risk range is determined.

✔️ On the contrary, the potential profit margin is above the support line, and the upward trend of the market has not ended, so theoretically, potential profits are unlimited. After entering the market and prices rise, we can hold the original position waiting for further increases, or we can gradually increase our position based on the original position. We will adjust our stop-loss based on market developments.

✔️ When the price rises again to a new support or resistance level and then starts to retreat, the area below this support or resistance level becomes the area for reducing positions. At this time, we should gradually close all positions.

🔥 In summary: First, we need to find a support and resistance line for the cost price. When the price rises far from the cost line, we gradually increase our position, and the increase must be decreasing. When the price falls gradually away from the cost line, we gradually reduce our position, and the reduction must also be decreasing. Your position management techniques must balance risk and reward.$ETH $BTC #加密市场反弹 #美国加征关税