How to manage contract positions? How to control positions? What can be done to maximize the profit-loss ratio! Super useful content! Read carefully, avoid detours, and in the future, you will also become a myth of a thousand times! Remember to follow me; 7 years of real trading experience will help you move forward!

What is position management, and how to reasonably control it? Simply put, it is to reasonably utilize the total funds you use for contracts. Under the same risk, earn the same profit. The most common method of position management is to enter the market in batches, allowing yourself to always be in a proactive state!

No position management: After a one-time all-in, you can only wait for the market to move. If the market goes against you, there are only two choices: either cut losses or hold the position. Cutting losses means losing money, and holding the position may lead to liquidation, creating a vicious cycle over time where losing money becomes the norm.

With position management: Enter the market in batches, and make plans before entering. This time, open a total position of 1000U in margin, and the entry points can be in batches in a matrix. Enter near pressure/support levels and split into 5-10 parts, placing orders every few dozen points (the probability of market reversal near pressure/support levels is higher). Follow me, and the next article will discuss how to maximize profits from the left side and the right side.

Taking ETH as an example: Open a market order for a head position of 100U (to avoid missing the opportunity). If the market goes against you, add positions every 30 points, totaling up to 10 times. This method can handle all extreme market conditions. Even if you add positions 10 times, you are still in a proactive state because the average entry price is adjusted according to the add-on prices, keeping it close to the market price; as long as the market rebounds slightly, you will make a profit.

The reason why quantitative trading can maintain stable profits is the same principle. Quantitative batch entry forms a matrix, and if the market goes against you, the holding price will remain close to the market price with added positions. As soon as the market rebounds slightly, you can make a profit; this is the charm of position management. It’s not difficult to make money in contract trading; the challenge is to hold on! Make 10 trades, and one trade could return both principal and profit. Position management just compensates for this vicious cycle; quantitative trading can profit because machines operate automatically without human interference. Both are the same method, and the culprit is just human psychology! Position management precisely reduces psychological pressure.

$ETH I am preparing to enter the market in batches again below 3550. Feel free to ask questions in the comments.