Many people lose money not because they are on the wrong path, but because they simply do not know how to manage their positions well.

I have a friend who, when he first entered the market, knew nothing. He opened leverage randomly and messed with his funds, losing over 4 million in a few months. Later, when I reviewed it with him, I found that it wasn't that he couldn't read the market; he just completely didn't understand position control. After I taught him a simple position management method, within a few years, not only did he recover his losses, but he also multiplied his gains several times.

So today, I will share some valuable insights with you. The key that really determines whether you make big money or get liquidated is position management.

1. Don't try to eat everything at once; learning to buy in batches is more important.

Take 100U as an example; don't invest it all at once. You can divide it into three purchases: first 30, then 40, and finally 30, to avoid buying at the peak and to average out your cost when prices drop. This is suitable for those who are unsure about the bottom position, especially for friends observing the 4-hour chart.

2. Contracts are a double-edged sword; don’t let leverage take your life.

10 times leverage of 10U is equivalent to 100U in spot trading. If you open a position of 100U, you are actually exposing yourself to a risk of 1000U. If the market fluctuates by just 10%, you could be wiped out. So don’t underestimate leverage; if you're not careful, you could lose everything.

3. Stop-loss is not just a stop-loss; it's your bottom line for survival.

I personally limit my losses to a maximum of 1% of my total capital per trade, so even if I lose 100 times in a row, I won't go to zero. The key is to retain the qualification to 'try again.' If you want to survive in the crypto space for a long time, you must prioritize survival.

4. Position size is not determined by gut feeling; it’s based on your tolerance for error.

You should size your position according to how much you can afford to lose. For short-term trades, I can enter and exit quickly, and I may take larger positions, but I don’t go beyond 3 times full margin, as I can't handle a higher stop loss. Always calculate your exit strategy carefully.

In the crypto world, it's not about who trades aggressively, but rather who lasts the longest. Manage your positions well; don’t be greedy, anxious, or gamble. The bigger the market, the more opportunities there are. Remember this: if position management is inadequate, entering the market is like sitting at a gambling table.

In the long run, this is even more important than choosing coins.