Why do you always lose? Perhaps it’s not because you misjudged the market, but because you mismanaged your position. There’s a classic saying in the crypto circle: 'Those who know how to buy are apprentices, those who know how to sell are masters, and those who can stay in cash are the grandmasters.' But true experts not only know how to stay in cash, they also understand position management.
What is position management?
Simply put, it’s about how much capital you use to participate in a trade, how you stagger your entries and exits, and how you keep some bullets in reserve to control risk.
Position management is not metaphysics; it is the underlying logic of 'long-term winning' in the crypto world.
Common losing patterns:
1. Going all in at once, getting stuck when volatility hits.
2. Adding more when the price rises a bit, only to get blown out by a pullback.
3. Waiting in cash for an opportunity; when it finally arrives, hesitating and missing out.
4. Not setting stop-losses, clinging to fantasies until hitting a margin call.
Most of these issues are not due to misjudging the market, but rather failures in position control.
Practical position management tips (recommended to save):
1. Build positions in fixed proportions:
For example, if you have 100,000 in capital, invest 30% in the first trade, and gradually increase your position if the market is favorable; if the market reverses, you can quickly stop loss or take profit.
2. Stagger your entries and exits:
Don’t fantasize about buying at the lowest point and selling at the highest point. Staggered operations are more stable and can effectively reduce misjudgments caused by emotional fluctuations.
3. Set stop-losses:
A trade without a stop-loss is like driving without brakes. Be decisive when it’s time to admit a mistake and exit.
4. Layered capital management:
Divide your capital into long-term holding, swing trading, and short-term quick in-and-out portions for clearer strategies and a steadier mindset.
5. Use leverage cautiously:
Leverage is not the problem; blind use is the disaster. Small capital can appropriately enhance efficiency, but do not harbor fantasies of 'striking it rich in one go.'
In summary:
The market may bring short-term gains, but what truly determines whether you can survive is position management.
With a stable position, your mind will be stable; with a stable mind, you can earn for the long haul.
With me, just follow the points in this market; let’s leave the earning to fate!
