Trading can be done with both light and heavy positions.
Capital management is the key to trading.
Some believe that light positions can avoid risks, while others feel that heavy positions can seize opportunities.
So how should one choose? This can be analyzed from the following points:
1: It depends on one's own strength. If you have strong abilities to catch explosive points, you can take heavy positions; if your abilities are weak, then light positions with a wide stop-loss should be set to avoid frequent stop-losses.
2: It depends on personal desire. If the desire is great, then the position will be heavy; if the desire is small, then the position will be light.
3: It depends on risk tolerance. The amount of loss one can bear determines the position size; if one can withstand large drawdowns, then heavy positions can be taken, otherwise light positions should be used.
Therefore, whether to take heavy or light positions should be determined by personal ability, desire, and risk tolerance.
What works for others may not work for you, finding what suits you is the most important!
As an experienced cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the crypto world but don’t know where to start? Follow me and check my homepage to achieve freedom in this bull market.
