Why do you always incur losses? Perhaps it's not that you misread the trend, but that you used the wrong position. There is a saying in the cryptocurrency world: “Those who can buy are apprentices, those who can sell are masters, and those who can hold cash are the ancestors.”
But for true experts, it’s not just about holding cash; more importantly, it’s about understanding how to manage positions.
What is position management?
In simple terms, it is the process of deciding how much capital to participate in a trade, how to enter and exit in batches, how to reserve capital, and how to control risk.
Position management is not metaphysics; it’s the underlying logic that allows you to “survive long-term and continue to profit” in the market.
The pattern of most people losing money:
All-in: Encountering fluctuations leads to being deeply stuck
Chasing the rise: When a pullback comes, the position is immediately breached
Hesitation: When the opportunity arises but you dare not enter, you watch it slip away
Stubbornly holding on: No stop-loss set, relying on illusions until forced liquidation
The root of these problems is often not a misjudgment of the trend, but rather a loss of control over positions.
Practical position management methods (recommended for repeated practice):
Build positions proportionally
For example, if you have 100,000 in capital, do not invest more than 30% initially. Gradually increase your position as the market confirms its strength; if the trend reverses, you can calmly stop-loss.
Enter and exit in batches
Do not seek to buy at the lowest or sell at the highest. Batch operations can smooth costs and reduce emotional interference, making trading more composed.
Set stop-losses strictly
Trading without a stop-loss is like driving without brakes. You must decisively leave the market when you reach the stop-loss point to preserve your strength.
Layered capital management
Divide your capital into different portions for long-term layout, swing trading, and nimble short-term trades; with a clear strategy, your mindset becomes more stable.
Use leverage rationally
Leverage itself is not the problem; blind use is the disaster. Small funds can appropriately increase efficiency, but you must never entertain the idea of “gambling to turn things around.”
The market may bring temporary gains, but what truly determines whether you can go far is the discipline of position management.
Stable positions lead to a stable mindset; a stable mindset enables stable profits.
If you also want to take the initiative and move steadily in future markets, then starting today, treat position management as your first lesson.
The road is still long; walk with clarity to reach the brightly lit place.
