$BTC

⚠️ When watching the market, the importance is: trend > structure > level.
⚠️ In trading, the importance is: position management > risk-reward ratio > win rate.
⚠️ If you have 1000 in capital and a stop loss of 50%, you will have 500 left. If you want to return to 1000, you need to earn 100% on the remaining 500. From this, it can be seen that position management is crucial; it can not only prevent you from being liquidated but also allows you to exchange small stop losses for large profits or make it easier for you to break even.
1️⃣ First, positions can be classified into full positions and incremental positions.
▶️ Full position in simple terms means that you put all your money together in a big wallet. If you have 1000, even if you use 10% of the funds, 100, to open a position, if you do not set a stop loss, the losses can exceed 100 until your entire 1000 is lost, leading to the collapse of your big wallet.