Why does it always lose money even when the direction is right? The answer may hurt you - most people's failure is not losing to the market, but losing to position.

Position allocation: 90% of funds as the 'ballast', 10% as the 'charge'.

I adhere to the '90/10 rule': 90% of funds for spot layout (betting on long-term value), 10% for flexible operations (capturing short-term opportunities).

  • The spot part is like building a foundation: building positions in batches to avoid buying at the top. I often use the '3-3-4' rhythm (the first 30% for testing the waters, adding 30% after confirming the trend, and investing another 40% after breaking key levels) to dilute costs and reduce risks.

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  • Flexible parts should carry a 'stop-loss rope': for example, if total funds are 10,000 U, I only take 500 U for short-term trading, strictly controlling single trade losses to within 5% (stop loss if losing 25 U). Leverage is not key; position size is the lifeline.

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Personal opinion: Heavy positions are like climbing without a rope; one misstep can wipe you out. In 2021, I witnessed too many people go to zero because of heavy positions in altcoins, while those who diversified their positions survived till now.

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Building position rhythm: Give up 'one throw,' learn 'ants moving house.'

The biggest trap in the market is making you think 'if you don’t buy now, it will be too late.' The truth is: opportunities are always there, but once the principal is gone, it’s truly gone.

  • Don’t panic during a big drop; buy in batches: for example, if Bitcoin drops from 60,000 to 50,000, don’t rush to heavily buy the dip. I will increase my position by 20% the first time it drops 10%, 30% the second time, and 50% the third time (pyramid buying method), so that the average cost is lower and the mindset is steadier.

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  • Beware of the 'itchy hands syndrome'; the market only trends 25% of the time, while the remaining 75% is volatile. Waiting in a cash position during non-trending times is more important than frequent trading.

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My blood and tears lesson: I once invested 50% of my funds chasing a rise, and ended up being trapped for half a year. Now I only strike hard during 'structural breakthroughs' (such as when the price breaks through previous highs with significant volume); at other times, I’d rather miss out.

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Survival rules: Stop-loss is the brake, discipline is the seatbelt.

  • Stop immediately if you lose 5% in a single day: this is a psychological defense line. If you keep hitting stop losses, it means the strategy has failed, and you must review rather than stubbornly hold on.

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  • Regularly realize profits: When profits exceed 20%, I will sell 30% to lock in profits. Account numbers are virtual; only what can be withdrawn to the wallet is real money.

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Anti-human nature test: After setting rules, use a small program to automatically execute trades to avoid emotional interference. I found that systematic traders earn 40% more than subjective traders.

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Written in the end: Surviving means laughing till the end.

The cruel truth in the crypto world is: 90% of people lose money, not because they are not smart, but because they keep repeating the cycle of 'getting rich - luck - collapse.'

If you always ponder 'which coin to buy,' it’s better to first answer this question: If the price drops 50% tomorrow, can my position hold up?

Remember: Position management is not a technique; it's an art of survival.#BTC If you are caught in confusion about holding positions and don’t know how to operate, follow me. I will help you avoid pitfalls with practical experience, firmly protect your principal, and slowly earn profits!