Six Basic Principles of Position Management in the Crypto Market
The six basic principles of position management:
First: Do not operate with a full position; always maintain a certain proportion of backup funds:
Second: Buy and sell in batches to reduce risk, average out costs, and amplify profits. The advantage of buying in batches downwards and selling in batches upwards is that your average price is lower than others, resulting in higher returns.
Third: When the market is weak, hold a light position; in a bear market, it's best not to exceed half a position. In a strong market, a heavier position can be taken, and in a bull market, the suggested maximum position is 80%, with the remaining 20% as short-term funds or backup to respond to unexpected events.
Fourth: Adjust positions accordingly as market conditions change; appropriately increase or decrease positions.
Fifth: During a sluggish market, you can temporarily hold no positions while waiting for opportunities to arise.
Sixth: Position Swap: Retain positions in strong cryptocurrencies and sell those in weak cryptocurrencies