Position management is like a protocol, an ideology, a underlying methodology. In a narrow sense, it is how many coins to buy and how much money to keep in the currency circle. In a broad sense, there are still many expansion points worthy of our attention. That is to say, there are still many positions that you have not thought of. When you can flexibly use the four words 'position management' in various scenarios, its impact on you will become an all-directional intervention, making you a walking position management machine.
It is worth it to get to this point.
If you understand most of what I am going to talk about next, you will be far ahead of most coin users in terms of thinking height, and even not just coin users, but citizens.
One, personal asset position management
In principle, speculating on coins can only be regarded as a high-risk asset allocation. Although the rate of return on operating currency circle assets far exceeds other traditional financial assets, if you do not have a master-level level of understanding, it is recommended to invest idle money in the asset allocation of the currency circle. What is the standard for idle money? Some people have tens of thousands of dollars in wages every month, some people have a large amount of cash, and some people can't even pay off their credit cards. I suggest that the starting capital for speculating on coins should be within 20% of your 'held cash'. This is a relatively conservative starting point for trying.
For example, if you have a monthly salary of 10,000 and savings of 100,000, you can take out 20,000 to speculate on coins and add 2,000 of principal every month. This proportion is already quite high, and in principle will not affect life, which can be regarded as idle money investment.
Some people have a solid family background and have a lot of real estate, but I still require you to start with 'held cash', not with total assets. This is responsible for you.
As the ability to control improves, such as the level of position management and the level of understanding of the currency circle, you can eventually grow into most of your assets being in the currency circle. This will definitely be the case in the future, and this is a safer way to allocate assets.
But now, please be honest and conservative.
I don't care about the way you operate, but 90% of coin users can't meet this first requirement, so why do 90% of coin users lose money? They don't have the ability to resist risks.
Some people don't have much savings and wages, or don't have wages at all, and want to rely on the currency circle to turn over. Almost all of their liquid money is in the currency circle, but they are still at a novice level. Once a bear market comes, their assets shrink, and a little bit of turmoil occurs in their lives. It is very likely that they will directly sell at a loss and join the army of debtors.
Being in debt because of speculating on coins is doomed.
If you borrow money to speculate on coins, you want to rely on the secondary market to turn over. It is not impossible, but you are choosing a road with a super high difficulty. There is a huge paradox in it, that is, your level is not high, but you borrow money. Borrowing money requires you to be at a very high level to play. Really, please ask yourself what you rely on before making a decision.


Two, currency circle asset position management
You have your money ready, then what? All in?
Okay, all in, and the second level failed again.
With the foundation of the first rule, we have eliminated the possibility of a major defeat caused by the need to sell assets urgently. But what about putting all your money in when the market is plummeting? You can only stare blankly. If you continue to invest cash to increase your position, you are breaking the first rule, and you may continue to break it out of inertia, eventually becoming a gambler, which is very scary, very scary.
What to do?
The more ideal state is half-position operation, meaning you use half of your funds to buy coins, and the other half is held in the form of stable coins. Whenever the price of the coin rises, your assets appreciate, and when the price of the coin falls, you have ammunition to continue fighting.
The most important skill in secondary market position management is that you can adjust the proportion of currency circle assets to a suitable ratio according to the market trend.
For example, in a bull market, it keeps rising, and your coins should keep decreasing, but never decrease to zero. If it soars, you can still make money. In a bear market, it keeps falling, and your coins slowly increase, but do not increase to the full amount. If it falls to the bottom, you can still buy the bottom. The key is to have 'leeway'.
Practice slowly, it requires a lot of practice. We will talk about it in detail later. There is something to say here.
I have always believed that 'all in' is a joke for novices, just talk. How could it really be done? But according to years of observation, most novices not only go all in, but even borrow money and use high leverage to speculate on coins. With a little bit of disturbance, they die immediately, lightly in debt crisis, and severely in family ruin. This is very strange. I have also experienced it myself. When I first started speculating on coins, I really bought all in. After losing money for a few years, I realized that I should buy in separate positions. Fortunately, I never touched leverage, but what's amazing is that I suddenly found that at least half of the people around me who speculate on coins play with leverage, and half of that half will eventually play with leverage a few times and lose a few times.
I'm really a bit confused. You need to know that leverage requires a lot from an individual. Where do these people get the courage to touch it?
After experiencing countless tragic stories, I want to sigh, if you don't understand position management, human hell is very close to you.
In addition, not only speculating on coins, but when you gradually master other ways to play, you also need to allocate other positions, such as IPO subscription position to always subscribe, arbitrage position to always arbitrage. This is something for later, you will have to face it sooner or later.
Three, sector asset position management
You can't just buy any coin you want.
Most coin users enter the currency circle from Bitcoin, and only dare to buy Bitcoin. They are lucky because Bitcoin is equivalent to the index fund of the currency circle, which is relatively stable.
However, some people are quite miserable. Entering the currency circle may be because they were pulled in by a pyramid scheme coin. All the assets in their hands are that pyramid scheme coin. No matter how well the previous two rules were followed, everything is gone when the project runs away.
With reasonable sector asset position management, you need to allocate mainstream coins, sector leading coins, and hot concept coins according to the corresponding proportions. A 532 ratio is already good. But in fact, very few novices allocate like this. They have a pile of messy coins in their hands, buying whatever is hot. After buying, they repeatedly switch positions, often messing up their formation, and end up with nothing.
Reaching the sector asset management stage, the difficulty index increases significantly, and the benefits of being able to do it increase accordingly. It requires you to have at least some understanding of some currencies in the currency circle.
According to my observation, this situation often occurs. For example, a novice comes to follow the wealth password. He doesn't even know what this coin is for, what position it occupies in the entire currency circle map, whether it is a new coin or an old coin, and what the relationship between several coins is.
This leads to the possibility that he chooses several coins that never get a chance to rise, or even fall. When he sees other people's coins keep rising, he panics. After switching positions, his previous coins rise again, and he repeatedly tosses around without getting any profits.
What you should know, you still have to know. What you should learn, you still have to learn. At least go and see what sector and concept this coin belongs to.
In sector allocation, there are now more diversified configurations. For example, some people only allocate coins related to the metaverse. You need to know that just taking out
the metaverse sector also has different sectors such as infrastructure, specific projects, and plug-ins. It can form its own system. For example, when the overall
storage sector rises, the storage-related concept coins in the metaverse will also rise. This kind of detailed sector allocation scheme will gradually become the mainstream way to play in the future.
Another point, the configuration style is also different according to the size of your assets. If the assets are relatively large, you can make certain allocations for all three major positions to eat the overall trend of the increase.
If the assets are not large, it is not realistic to allocate such comprehensive coins. You can allocate to a certain sector, or only allocate short-term new coins. Both are acceptable.

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