Six Basic Principles of Position Management in the Cryptocurrency Market
The six basic principles of position management:
First: Do not operate with a full position; always maintain a certain proportion of spare funds:
Second: Buy and sell in batches to reduce risk, average down costs, and amplify returns. The advantage of buying in batches downwards and selling in batches upwards is that your average price is lower than others, resulting in higher profits.
Third: When the market is weak, hold a light position; during a bear market, it's best not to exceed half a position. In a strong market, you can appropriately take a heavier position; in a bull market, it is recommended that the maximum position be at 80%, with the remaining 20% as short-term or spare funds to deal with unexpected events.
Fourth: As market conditions change, make corresponding position adjustments, appropriately increasing or decreasing positions.
Fifth: During a sluggish market, you can hold a short position and wait for opportunities to arise.
Sixth: Position swapping: retain positions in strong cryptocurrencies and sell off weak ones.
