Many people trade cryptocurrencies and end up losing everything, but it's not the market that makes them fail; it’s poor position management.
Over the past few years, I've noticed a common issue among most retail investors:
They can’t hold on when the market is trending up and stubbornly cling on when it’s going against them.
For example:
When the market is rising, the trend looks good, and your position could clearly make a significant profit, but you fear giving back your profits and exit after making a few points. What happens then? The market keeps soaring while you watch from the sidelines.
But once the direction turns wrong, it changes completely— not only do they avoid cutting losses, but they also keep adding to their position while holding on, which leads them deeper into trouble.
This creates a vicious cycle:
They make small profits but can lose everything. Over time, the account balance only has one trajectory: zero.
In fact, the correct logic is very simple:
First, clarify how much you can afford to lose, then decide on the size of your position. For example, if a cryptocurrency is strong but the support level is far from the current price, you can only enter with a small position, light enough that even if it drops to the support level, you can remain calm and not panic.
The key to position management is—make yourself comfortable.
Don’t always think about going all-in; when the price rises, you’ll be elated, and when it drops, you’ll lose sleep over it.
The mature approach is:
Start with a small position, you can add more if it drops, and while you might not earn much when it rises, at least you are still making a profit.
This way, regardless of whether the market goes up or down, you remain in your "comfort zone," and your mindset won’t be swayed by market movements.
Many people think of position management as simply "stop-loss point + position size" in a mechanical way, but the true meaning is:
Controlling your position is actually about controlling your mindset.
A wrong market direction isn’t scary; what’s truly deadly is having the wrong position size.
Pay attention today: RLC TREE NMR CATI LPT
