The "Dumb Skill" to Get Rich in the Crypto World: Crushing 99% of Smart People with Position Sizing
While the crypto world creates wealth myths every day, are you still cutting losses and exiting?
The problem lies in your operational logic—you are still using retail investor thinking to chase rises and falls, while the experts have already harvested the market using the "position sizing snowball" tactic. Last year, this method turned an 80,000 investment into 1.3 million; the big players hate this kind of "mindless operation"!
Four Steps of Position Sizing: Divide Your Account into Four Slices
Capital Segmentation: Regardless of whether the principal is 10,000 or 1,000,000, divide it into four equal parts (for example, 80,000 becomes four parts of 20,000 each).
This method of segmentation makes risk controllable; even if a particular operation goes wrong, the loss is limited to a small part.
First Position Test: Choose a fundamentally solid cryptocurrency and use the first portion of funds to enter the position at the current price. If it drops by 15%, immediately add the second portion, using a grid strategy to lower the average cost.
Remember: A drop is not a risk but an opportunity to pick up cheap chips.
Mechanical Profit Taking: When profits reach 8%, decisively sell 1/4 of your position to lock in gains. Don't be greedy waiting for higher points; securing profits is true skill.
Last year, using this trick in Bitcoin's volatile market, I consistently withdrew 20% profits each month.
Cycle Printing Money: Execute the same operation regardless of whether prices rise or fall—buy more when prices drop, cash out when prices rise. This system works like an ATM, and a volatile market instead becomes a money-making opportunity. A stock market friend used this method to grow an initial 3,000 U to 48,000 U, now withdrawing a fixed amount monthly.
Why does this trick crush retail investors?
Downside Resistance: Even if a certain coin drops by 40%, you only use two portions of funds to participate, and during the decline, you continue to add to your position, resulting in actual losses much smaller than those fully invested.
Psychological Advantage: Position sizing allows you to always have ammunition to add to your position; while others panic and cut losses, you are happily picking up cheap chips.
Efficiency Upgrade: If you find an 8% profit too slow, you can lower the profit-taking line to 5%, double the trading frequency, and sharply increase the utilization of your funds.
The crypto world is not a casino but a mathematical game. While you search for a holy grail in candlestick charts, the experts are using position sizing to turn the market into an ATM.
Now, will you choose to continue being a smart retail investor, or become a rule-maker? @加密大师兄888