Position Control Analysis: The First Lesson for Newbies in the Crypto World
You ask me: What does it take to turn things around in trading?
Skills? Luck? Recommendations?
None of these.
What truly decides the fate of your account is just two words: Position Control.
What is Position Control?
Position Control = Position Management + Risk Control
In simple terms, it’s this:
No matter how optimistic you are about the market, you cannot go all in at once!
No matter how much you want to turn it around, you must control the risk!
If you don't do Position Control well, even if you're right, you can still blow up;
If your Position Control is solid, you can survive even if you're wrong!
The three core principles of Position Control
Sub-position Operation:
Divide your capital into several parts, do not put all your eggs in one basket.
For example: Cut 3000U into 6 parts, with a maximum of 500U per order,
Leave 2 parts as flexible positions, do not act easily, only wait for key signals.
Benefits:
One wrong order won't lead to a loss of everything
Stable mindset, not easily impulsive
Leave space for averaging down/reversing trades
Stop Loss Mechanism:
Position Control is not just about “entry,” it also includes “exit.”
Each order must have a pre-set stop loss point,
I set a hard stop loss within 3%, if wrong, I withdraw, never hold.
Core Concept:
If wrong, stop loss, control the losses within manageable limits
Do not let one loss affect the overall account
Risk Control Drawdown Limit:
What is the maximum drawdown your account can handle each month?
I set my account's maximum drawdown to within 10%,
As soon as a week’s loss exceeds 5%, trading is automatically paused to adjust.
This step is often overlooked by most!
They only think about doubling their capital, never about how to survive until tomorrow!
Reference for Correct Position Control Plan:
Capital Size Single Position Stop Loss Ratio Description
300U 30~50U ≤5% Small positions rolling, starting low
1000U 100~200 ≤3 Steady layout, considering drawdowns
5000U+ ≤500U ≤2% High capital = high tolerance = more precise position control
Going all in, betting on ups and downs, then claiming the market is toxic
No stop loss set, relying solely on “toughing it out” — ending with an empty account
Clearly, light positions could yield profits, but increasing positions leads to losses
It’s not that you don’t understand the skills, it’s that you haven’t controlled yourself.
What you are doing now is not flipping positions, but gambling with your life.
Following the right people is more useful than blindly trying it yourself 10 times.
You just need someone who understands Position Control to help you steadily capture every profit wave!
