The Secrets of Position Management from an Experienced Trader
1. Remember, never shoot all your bullets at once. Divide your capital into five parts and only use 1/5 of your position each time. Set a stop-loss at 10 points, so even if you are wrong five times in a row, you only lose 10% of your total capital. But if you get it right, let your profits run—don’t easily let go until it’s less than 50 points.
2. Going with the trend is an eternal truth. In a downtrend, every rebound is a gentle trap; in an uptrend, every pullback is a golden opportunity. Bottom fishing? That’s something only beginners do.
3. Stay away from coins that have surged in the short term. Whether it’s mainstream coins or altcoins, those that can sustain a major upward trend are rare. Remember, when it stops rising, it’s time to fall—this market never shows mercy.
4. MACD is your good friend. A golden cross below the zero line is worth noting, while a death cross above the zero line is a retreat signal. Don’t argue with indicators; they are more reliable than your intuition.
5. Averaging down? This is the most toxic advice in the crypto world. How many people have fallen into the trap of "if I just add a little more, I can break even"? Remember: only add to your position when you are in profit; increasing your position when you are in loss is equivalent to suicide.
6. Volume doesn’t lie. Follow the breakout on high volume at low levels, and run away when there’s high volume stagnation at high levels. In this market, where the money flows, opportunities arise.
7. Only trade coins in an upward trend. A rising 5-day line indicates short-term opportunities; a turning 30-day line can be used for medium-term trades; a rising 84-day line signals the arrival of a major upward wave. Don’t get involved with coins in a downtrend.
8. After the market closes each day, take a moment to reflect. Is your holding logic still valid? Is the weekly trend still healthy? This market changes rapidly; lazy people don’t deserve to make money.
In this market, those who survive the longest are not the smartest, but those who best understand risk management.
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