Position Management: Trapped, Liquidated, or Missing Out? It's Just Because You Don't Know How to Manage Your Position!

Learn this trick, and you will surpass 99% of people!

I believe many cryptocurrency friends have more or less experienced the helpless feeling of being trapped after fully investing, with the market soaring but having nothing to do with themselves, and being unable to cut losses. These can be avoided through position management. Without further ado, let's get straight to the point:

Here’s my current advice on position management:

For example, if you take out 30,000 USDT to trade contracts,

my suggestion is to split it into three parts, each part being 10,000 USDT.

Each time you open a position, use one part to open a position, a fixed 10,000 USDT,

for Bitcoin, do not exceed 10x leverage, for altcoins, do not exceed 5x leverage.

If you lose money,

for example, lose 1,000 USDT, you should replenish 1,000 USDT from outside.

If you earn 1,000 USDT, you should withdraw 1,000 USDT.

Ensure that in the recent period,

you can guarantee that each time you open a position, it stays at a fixed position of 10,000 USDT.

Until you turn your 30,000 USDT into 60,000 USDT using this method,

then raise each part of your position to 20,000 USDT.

The benefits of doing this are:

1. Split positions + low leverage, avoiding the risk of liquidation due to exchange spikes that could lead to losing all your funds.

2. Avoid the issue of being overly invested. One day you might get overly confident and lose everything, but at most you would lose 1/3, leaving the rest as a buffer opportunity.

3. Maintain a fixed position, allowing you to keep a relatively calm mindset whether you are losing or winning, which helps stabilize your mentality.

My habit when opening positions is to fully utilize the amount.

For example, 10,000 USDT for one part, one market for one coin, is to fully execute it in one go.

Fully execute means using 1/3 of the split position, with altcoins at 5x and Bitcoin at 10x, thus entering and exiting fully.

This way, my overall grasp of the entry point for orders is relatively precise.

If you are using stop-loss orders and low leverage, liquidation is impossible.

My logic is not to look at all indicators, but to focus on position profit and loss.

For example, if my total scale earns X%, I increase one part of the position; if my total scale loses Y%, I will either stop-loss completely or exit.

All operations are only related to my position profit and loss; K-lines only play the role of indicating my initial entry direction.

As for those indicators, their original purpose is to reflect the profit and loss situation of the positions that invented those indicators. In fact, this operation of mine is essentially an abstract indicator.