What is the root cause of losses in the cryptocurrency market?

You might think it's bad luck or an immature market.

But in fact, there is only one true reason — you don't understand position management.

If you have no awareness of position management, then just wait to be harvested by the market.

The cryptocurrency market is a "jungle" filled with opportunities and risks, and many people want to get rich overnight.

But if you don't know how to allocate your funds, you will inevitably become prey to the market.

Stop fantasizing about striking it rich by luck; many people rush to put all their money into a coin they hear will explode, expecting to soar.

Then, they start to feel anxious, adjusting their position over and over again, lacking patience in their trades, and hastily increasing their positions without making any profit.

As a result, their funds are eroded like running water, and in the end, they lose everything.

Luck will not always be on your side!

When the market is volatile and your position is unreasonable, once the trend reverses, you can only become the one who gets wrecked.

So, how can you avoid these pitfalls?

Position management is the key.

It determines whether you can steadily turn things around in the cryptocurrency market.

I never go all in; I control my position in each trade to be between 20%-30%, keeping the remaining funds as a "reserve" to guard against market fluctuations.

When the trend is confirmed, I gradually increase my position based on market signals, but my maximum position never exceeds 50%. This way, my risk is always controllable.

This is the secret to my steady growth from 2000U to 4WU — diversifying positions and taking steady steps.

For every trade, I plan carefully and execute strictly, not gambling or rushing, and steadily making profits.

Whether you can turn things around depends on how you manage your positions.

Don't place all your hopes on a single trade, especially those "gut feeling" trades.

Yes, you may have made some profits, but an eventual crash can lead you to lose not only your previous gains but even your principal.

Those who understand position management do not put all their funds into a single trade; instead, they steadily increase their positions based on market trends, avoiding the risk of a total loss.

If you're still thinking about making hundreds of thousands from a single trade, then it's only a matter of time before the market consumes you.

What can truly turn things around for you is learning position management and risk control; taking steady steps can lead to sustained profits.

Learning to manage your positions is the real way to success.