Happy weekend, everyone! Here are some practical tips to share.
Trading cryptocurrencies is a serious matter, and position management is very important.
1. Never go all-in.
2. Don't increase your position in a downtrend. Averaging down can lead to deeper losses; wait for the trend to reverse before acting.
3. Diversify your positions according to your capital. For example, if you have 100,000, split it into five portions of 20,000 each.
4. Newbies should start with a small position. Don't invest a lot at the beginning; start with a small amount to gain experience.
5. Reduce positions when the market is unclear. If the market is chaotic and direction is not clear, sell some to secure profits.
6. Increase your position when breaking through resistance levels. If a cryptocurrency breaks a key resistance line, consider adding to your position to seize the opportunity.
7. Build positions in batches. If you are optimistic about a cryptocurrency, don’t buy it all at once; split it over several purchases to lower risk.
8. Reasonably increase your position when in profit. If you’re making money, it may indicate your judgment is correct, so consider adding to expand your gains.
9. Diversify your positions. Don’t buy into just one sector; mix different tracks, as gains in one area can compensate for losses in another.
10. Keep a reserve position to observe. Sell off most of your holdings while keeping a small amount, monitor the trend, and re-enter if there’s a chance.