Whether in the stock market or the coin market, if you manage your position well, you will outperform the vast majority of people.

Regardless of whether it is spot or contract, how to manage the Position directly determines your risk control level, average holding price, and ultimately the size of your profits. This can be said to be the most important aspect besides direction and mindset.

The six basic principles of position management:

First: Do not operate with a full Position, always maintain a certain proportion of reserve funds.

Second: Buy and sell in batches to reduce risks, average out costs, and amplify profits. The advantage of buying in batches when the price goes down and selling in batches when the price goes up is that your average price is lower than others, resulting in higher returns.

Third: When the market is weak, one should hold a light position, and it is best not to exceed half a position in a bear market. In a strong market, one can appropriately hold a heavier position, and in a bull market, it is recommended that the maximum position be at 8 layers, with 20% remaining for short-term or reserve funds to deal with unexpected events.

Fourth: With the changes in the market, corresponding Position adjustments should be made, and appropriate increases or decreases in Position should be applied.

Fifth: During a market downturn, you can temporarily hold a Position and wait for opportunities to arise.

Sixth: Repositioning: Keep positions in strong coins and sell weak coins.

The above 6 principles apply to both spot and contract. If you still don't understand, Lu Xing is always here, revisiting the old and learning the new, you can take him as a teacher!