Sharing a few practical position management tips to help you trade more securely:
1. Never go all-in, leave room for flexibility
No matter how optimistic you are about the market, only use a maximum of 30% of your position to enter, keeping 70% as "reserve funds." When the market suddenly reverses, having "bullets" allows for a flexible response, and having room means you can turn the situation around.
2. Build positions in batches, steadily increase like climbing stairs
Don’t go all in at once; short-term fluctuations can easily trigger stop losses. You could try this:
- First position: Lightly test the waters when hitting a bottom or breaking through
- Second position: Increase your position after confirming the trend direction
- Third position: Heavily increase your position when the trend is clear
Step by step, you can advance or retreat.
3. Don’t add positions when losing, don’t be greedy during rebounds
If a position is losing, don’t think about averaging down—this is the pit most retail investors fall into. The real trick is: when the trend reverses, decisively cut the position. Take a break and wait for the next opportunity. When a rebound occurs, take your profit; don’t cling to it.
4. Decide stop-loss and take-profit levels before buying
Before buying, you must be clear: at what point do you have to stop-loss? At what point do you decisively take profit?
It is recommended to set at least a 1:2 risk-reward ratio for each trade, so even if the success rate is only 50%, you can still make a profit in the long run.
Playing in the crypto world is essentially a contest between retail investors and large players; if you don’t have cutting-edge news or first-hand information, you can only be taken advantage of! Those who want to plan together and harvest from the large players can come to me; I welcome like-minded individuals in the crypto world to discuss together~
There’s a saying I strongly agree with: the boundary of knowledge determines the boundary of wealth; a person can only earn wealth within their boundary of knowledge.
Maintain a good mindset when trading cryptocurrencies; don’t let your blood pressure spike during big drops, and don’t become overly complacent during large rises. Taking profits is crucial. For those with limited resources, being steady is the unbreakable way to survive.
Giving someone a rose, the fragrance remains in your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025! #加密市场回调 $ETH