Eight Position Management Tips for Cryptocurrency Speculation

1. For every market transaction, the loss should not exceed one-tenth of the capital, which means that when the loss reaches 10%, you must exit no matter what, because generally speaking, a loss of 10% indicates that the operation is wrong, and you should decisively exit at this time.
2. Always set up stop loss position. This is a re-emphasis of the previous rule, just that the stop loss position set may not necessarily be a 10% loss, it can be set appropriately as needed, for example 5%.
3. Never trade in excess. The so-called never trading in excess means trading in moderation, which has two meanings here: A. Do not invest too much capital when the direction is unclear. B. Do not trade too frequently.
4. Never let the position turn from profit to loss. Simply put, set a stop-profit level on the basis of the already profitable position. This stop-profit level is set relative to the lowest profit in the account, and the set point is not lower than the cost price of the purchase. This is a good method to ensure effective profit.
5. Suspected, that is, close position, leave the market This is a continuation of the previous rule. When you cannot judge whether the trend is up or down, it is best to leave the market and watch, because at this point you can no longer follow the trend. At this time, staying in the market (Holdings) is blind investment. 6. Only trade in active markets This active market can be understood as different trading varieties in different trading markets.
7. Never set a target price to enter or exit the market, but only follow the market trend. Here, it is emphasized again to follow the trend and warn against setting target prices to enter or exit the market. It should be noted that this does not mean that you should not set stop-loss or take-profit levels, but rather another situation: some people like to say that they will only buy when the price falls to a certain level and catch the bottom, while others say that they will not sell unless the price rises to a certain level, ignoring the market trend. This is very dangerous and is the true meaning of this rule.
8. If there is no appropriate reason, do not Close Position of the Holdings, you can set take profit to protect the profits. This is about the mentality issue. Many people like to trade based on feelings, without principled Close Position, which becomes too arbitrary and chaotic. Therefore, this rule recommends using the method of pre-setting take profit levels. Many Newbies and fren in investment are trading based on temporary preferences, and luck plays a large role in investment. However, luck cannot always be with you. The two most important points in investment are: first, to understand the market analysis; second, to understand risk control. As an investor, you should have a good mentality and the correct investment concept. Never envy the results obtained by others, just because you didn't work hard for your own results.