Six Basic Principles of Position Management:

First: Do not operate with a full position; always maintain a certain percentage of reserve funds:

Second: Buy and sell in batches to reduce risk, average costs, and amplify profits. The advantage of buying in batches downwards and selling in batches upwards is that your average price is lower than others, resulting in higher profits.

Third: When the market is weak, hold a light position; in a bear market, it's best not to exceed half a position. During a strong market, it is acceptable to hold a heavier position; in a bull market, it is recommended to limit the position to 80%, with the remaining 20% as short-term or reserve funds for unexpected occurrences.

Fourth: Adjust positions according to market changes; appropriately increase or decrease positions.

Fifth: During a sluggish market, it is advisable to hold a short position and wait for opportunities to arise.

Sixth: Change positions: retain strong cryptocurrencies while selling weak ones.

The above six principles apply to both spot and contracts. If you still don't understand, please read it carefully a few times!