Want to avoid pitfalls in the cryptocurrency market? Avoiding the curses of being trapped, getting liquidated, and missing out on opportunities requires position management! Master this skill, and you'll be able to leave most people behind!

Many cryptocurrency traders have experienced this frustration: buying all in, only to be stuck, watching the market surge without any impact, wanting to sell but unable to bring themselves to do so. In fact, these problems can be avoided through proper position management. Without further ado, let's get straight to the practical steps:

Position Management Specifics

Suppose you have 30,000 U contracts. Here's how to plan:

• Divide the 30,000 U into three equal portions, each 10,000 U.

• Use one portion each time you open a position, for a fixed amount of 10,000 U.

• Be mindful of leverage when opening positions: never exceed 10x for Bitcoin and 5x for altcoins.

Principles for Managing Profits and Losses

• If you lose 1,000 U, replenish it with 1,000 U from an external source.

• If you earn 1,000 U, withdraw it.

This ensures that you maintain a fixed position of 10,000 U each time you open a position for a period of time. Once you've earned 60,000 U using this method with 30,000 U, increase each position to 20,000 U, and so on.

Benefits of This Method

• Splitting positions and using low leverage effectively prevents total capital loss due to exchange manipulation.

• Even if you lose money on a given day, at most only one-third of your funds will be wiped out, leaving you with a buffer.

• A fixed position allows you to maintain a relatively calm mindset during both gains and losses, helping to stabilize your operations.

Position Opening Habits

I usually buy a full position at once, for example, 10,000 U units. When the market and currency pair are right, I use that capital to enter and exit the position (of course, adhering to the 10x leverage rule for Bitcoin and 5x leverage for altcoins). I can do this because I have a pretty accurate grasp of the entry points.

In fact, as long as you use stop-loss orders and low leverage, you rarely get liquidated. My trading logic is simple: I avoid complex indicators and focus solely on the profit and loss of my positions. For example, if the total profit is X%, I'll add another position; if it loses Y%, I'll stop loss or exit the position entirely. Those so-called indicators essentially reflect the profit and loss of the positions at the time they were invented. My trading method can actually be considered a non-tangible indicator. $BTC #加密市场回调 $ETH