Have you mastered position management? A must-read for beginners!
90% of people cannot escape the situation of a full position crashing or an empty position missing out. The root cause lies in ignoring a fundamental truth: position management is the core lifeblood of a trading system. Choosing the right targets only determines the probability of making profits, while managing positions enables you to survive until a bull market.
The three core values of position management are: when there are negative policies or project failures, a full position can only lie flat and play dead, while a controlled position can buy low. For example, during the collapse of a certain exchange in 2023, those with empty positions avoided a 50% drop, while those with light positions were able to bottom fish using their base positions to realize profits from the crisis.
When the price of coins plummets, cash becomes a bloody chip. While others panic and sell at a loss, you can pick up bargains at the bottom; this is the violent aesthetics of position management.
Your heart races when heavily invested, but feels light with a light position. A psychological breakdown often starts with a reckless all-in.
Three Golden Rules
1. Ladder-style building positions: exchange time for space, start with an initial position of 3% for testing the waters, and increase by 2% for every 10% drop, gradually diluting the cost. A certain player used this method to bottom fish after the LUNA crash in 2022, reducing the cost from 80U to 12U, and profiting upon rebound.
2. Dynamic profit-taking: let profits run. Sell 30% at 13U to recover costs, sell another 50% at 15U to lock in profits, and set a trailing stop for the remaining 20%. The core logic: use a small position to seek large returns, and large positions to secure profits.
3. Structured diversification: reject pseudo-diversification (AI 30% + DeFi 30% + infrastructure 20% + cash 20%), with a single coin limit of ≤10%, to avoid black swan zero-risk.
The most self-destructive behavior is when many people add positions every time the coin price drops by 10% until they run out of bullets. The solution is to preset the number of add positions, such as a maximum of 3 times, with each interval of ≥20% drop.
2025's top position management secret: trend tracking: pyramid adding method. After confirming bull market signals: base position 30% → break through add 20% → accelerate add 10%. Let profits drive positions, not emotions.
Bear market funnel-style adding method: for every 20% price drop, double the position, such as 10U buys 10% → 8U buys 20% → 6U buys 30%. Limited to valuable coins; junk coins become more locked as you add.
Position management is very important; surviving in the market is more crucial than catching a once-in-a-lifetime hundredfold coin because as long as you're alive, big opportunities will come that will make you earn abundantly.
Still unsure how to operate in this market? Follow me for strategies, and your execution power is up to you! There are only so many positions; those who are quick will have and those who are slow will miss out.