In the crypto world, no matter how accurate your predictions are, it’s useless if you can’t control your position. Most liquidations are not due to technical issues, but rather out-of-control positions.
Many people think that having strong technical skills guarantees success, which is a huge mistake. Out of ten liquidations, nine are due to poor position management, and have little to do with candlestick analysis. Even if you correctly predict the market, if you heavily bet on it, a slight reverse fluctuation could kick you out—just like trying to catch a waterfall in a glass cup, unable to withstand the weight of greed.
Newbies often ask, "Can I go all in?" This isn’t trading; it’s clearly gambling your entire fortune on a candlestick. How many people are stuck in the cycle of "being greedy with winning trades and stubbornly holding onto losing trades"? When in profit, they want to get rich overnight; when in loss, they hope for a reversal, yet don’t realize their account is already on a countdown to zero.
I’ve stumbled before, betting half my capital on a "sure market trend," only to see three-quarters of my funds evaporate with one large bearish candle. Watching the shrinking numbers, my fingertips tremble—this is the market’s harsh blow to the "technical omnipotence theory." Only after experiencing pain do I understand: position management is the oxygen mask, and mindset is the key to profit.
Now I strictly adhere to three iron rules:
Light positions for trial trades are fundamental, with each investment not exceeding 10%-15% of total capital, so losses won’t severely impact the foundation. When in profit, gradually increase positions, allowing profits to grow slowly; don’t expect to achieve everything in one go.
Stop-loss is a lifebuoy; cut your losses immediately if the direction reverses. This isn’t about accepting losses, it’s about insuring your account. The market is merciless; if you don’t let go, you’ll eventually be dragged into the deep sea.
Diversifying positions can buffer emotions, entering and exiting in batches allows position fluctuations without waking rationality. Avoid letting a single trade disrupt the rhythm, so that trading remains as steady as a pendulum.
Trading isn’t about who makes money the fastest, but who can endure until the opportunity arises. If you find position control troublesome now, you will inevitably regret it after a liquidation night; if you’re lazy about following rules, you will pay the price sooner or later. Are you destined to be cannon fodder or wait for compound interest? The answer lies in the position of every order you place.
If you don’t know what to do, you can find me. See the cooking industry inspection borrow
