The 12-character guideline for position management states that only by maintaining a light position can risks be transformed into opportunities!

In the unpredictable battlefield of cryptocurrencies, countless investors have fallen on the hidden reefs of position management. Some have lost everything due to full position operations during a sharp decline, while others have risen against the tide in a crisis through clever position control. After years of practical experience, I have summarized a set of "Always maintain a light position, occasionally take a heavy position, and never go full position" as the 12-character golden rule. This strategy serves not only as a shield for risk prevention but also as a sharp blade for seizing opportunities.

Maintaining a light position is the wisdom of finding certainty amidst uncertainty. When the market fluctuates, those with full positions can only passively bear the risks, as every fluctuation may become the last straw that breaks the camel's back. In contrast, those with light positions can maintain initiative during crises. When the market declines, the cash reserves they hold can be used to buy low, turning risks into good opportunities to average down costs; when the market rises, they can enjoy the benefits of their holdings while also adding to their positions at any time to expand their gains. This state of flexibility allows those with light positions to always keep control of the trades.

"Always maintain a light position" is the fundamental principle throughout trading. Even in trends with clear directions, it is not advisable to fill the positions all at once. Maintaining a light position of 30%-50% allows one to seize market opportunities while effectively controlling risks. This position setting is like buckling up a seatbelt for trading; even when encountering a black swan event, one will not suffer severe losses.

"Occasionally take a heavy position" is the killer move for seizing key opportunities. When the market presents a once-in-a-lifetime certain opportunity, such as significant positive news or the confirmation of key support levels, one can moderately raise the position to 70%-80% while strictly controlling risks. However, heavy positions must be based on thorough fundamental analysis and technical confirmation, and strict stop-loss and take-profit levels must be set; if the market does not meet expectations, one must immediately revert to a light position.

"Never go full position" is a non-negotiable red line. Full position operations may seem to maximize returns, but in reality, they completely hand over one’s fate to the market. The high volatility of cryptocurrencies means that any unexpected event can happen; under full position, even a small fluctuation can wipe out the account. Only by adhering to the bottom line of not going full position can one maintain survival ability amidst the market's storms.

The essence of position management is a profound understanding and restraint of human nature. Greed and fear are the greatest enemies of investors; full position operations are often driven by greed, while the reluctance to take heavy positions stems from excessive fear. The core of the 12-character guideline is to find a balance between greed and fear, seizing opportunities while controlling risks.

In this market full of temptations and traps, the importance of position management even surpasses stock selection and timing. Always maintaining a light position allows us to remain calm amidst uncertainty, occasionally taking heavy positions enables us to achieve breakthroughs in certain opportunities, and never going full position provides an everlasting insurance for our trading careers. Remember, true masters are not those who seize the most opportunities, but those who can remain steady when risks arise.