Position Management: The Survival Rule for Professional Traders
Full position is a gambler, empty position is an audience; the real winners are using this system!!
The truth verified by the market with blood and tears: choosing the right coin determines the upper limit of returns, while position management determines the lower limit of survival. When a black swan strikes, those with full positions lie flat in despair, but those controlling their positions sense opportunity.
Three Core Principles: The Underlying Logic Used by Institutions
1. Gradual Position Building Method
Wrong Demonstration: Full bet of 1000U on a certain coin
Professional Strategy:
Initial Position 3% (30U) to test the waters → Validate the trend
Add to 5% (50U) on a 10% pullback → Average down the cost
Add to 8% (80U) on stabilization and breakout → Let profits run
Effect: Cost reduces from 10U to 7U, rebounds to 8U for profit, enhancing downside protection by 300%.
2. Dynamic Profit-Taking Technique
Case: Coin bought at 10U rises to 15U
Novice: Stubbornly holds a target of 20U, ends up losing to 12U.
Expert:
Sell 1/3 at 13U → Recover principal with zero risk
Sell another 1/3 at 15U → Lock in 56% profit
Keep 1/3 for excess returns → Mindset unaffected by fluctuations.
3. Gold Configuration Matrix (Both Offensive and Defensive)
Risk Level Configuration Ratio Industry Distribution Single Coin Upper Limit High Volatility ≤10% Meme Coins/New Public Chains 5% Medium Growth 30% AI + Depin Tracks 10% Low Risk 60% BTC/ETH + Stablecoins Wealth Management 20%
Why do 90% of retail investors get liquidated?
Addiction to Averaging Down
"Just one more addition will break even" → After running out of bullets, losses expand by 200%.
Solution: Set a hard stop-loss line (cut losses immediately if single coin loss > 8%).
News-Driven All-In
Easily believing insider news and going all-in → Account goes to zero within 24 hours.
Solution: Initial position in news coins ≤ 5%, add more only after 3 days of increasing volume.
Illusion of Holding On
A 50% loss requires a 100% increase to break even → Missing other opportunity costs.
Iron Law: When total position drawdown > 15%, forcibly reduce position to 50%.
2025 Professional Level Position Model
Applicable Strategy Scenarios Capital Efficiency Risk Resistance Key Operations Pyramid Adding Positions in Bull Market 10U → 30% Position, reduce adding for every 5% increase; Funnel Control in Bear Market 10U → 10% Initial Position, double on every 15% drop; Hedge Balance Technique in Volatile Markets 50% Spot + 50% Contracts, profits converted to spot.
Key Insight: During the violent drop on March 12, 2024, accounts using the hedge balance technique only faced a drawdown of 7.2%, while those fully invested lost an average of 62%.
Position management is not a technique, but a cognitive overpowering. When you can restrain yourself during a surge and be greedy during a drop, you have truly entered the door of winners.
