In the crypto space, if you manage your positions well, you'll outperform the vast majority of people. Here are two position management methods:
1. Left-side position management 2.3.5
(1) Don't use all your bullets at once; buy in batches.
(2) You can divide your funds into several parts; when you're uncertain about the bottom, buying in batches is the most suitable way to average the cost price.
(3) Adding positions should be flexibly handled according to market changes; don't add positions too frequently because that can negatively affect the cost averaging. Entering 20%, 30%, or 50% is suitable for aggressive investors who are keen on bottom fishing.
(4) Start with a relatively small investment; if the coin price doesn't rise and continues to fall, gradually increase your position with larger proportions to dilute the cost. This method has a smaller initial risk; the higher the funnel, the more considerable the profit.
2. Right-side position management 3.3.2.2
(1) Buy 1: When the 5-day moving average crosses above the 10-day moving average, increase by 30% of your position.
(2) Buy 2: When the coin price effectively breaks through the lifeline, continue to add 30% of your position when it retraces to the lifeline, ensuring that the total position at the beginning of the upward trend reaches 60%.
(3) Buy 3: When it breaks through the neck line or other important resistance levels, retraces and stabilizes again, indicating that the reversal upward pattern is established, add another 20% to your position. The total position should reach 80%, holding coins for the rise.
(4) Buy 4: When the coin price is above the lifeline and the 5-day moving average crosses above the 10-day moving average again, it is a typical signal to step on the gas for accelerated upward movement. At this point, you should also buy the remaining 20% promptly to maximize profits.