The following are suggestions for Position management:

If you have 30,000 U ready to invest in contract trading, you may want to try dividing it into three equal parts, each with 10,000 U. When opening a position each time, use one of the parts, i.e. 10,000 U, and do not exceed 10 times leverage for major coins and 5 times for altcoins. If you encounter a loss, such as losing 1000 U, consider supplementing the same amount from external sources; conversely, if you make a profit of 1000 U, you can withdraw it. Ensure that each time you open a position, you can maintain this fixed 10,000 U Position for a certain period. Until you increase the value of 30,000 U to 60,000 U in this way, then raise each Position to 20,000 U.

This approach has many benefits:

First, by using separate positions and low leverage, you can effectively avoid full losses caused by extreme situations such as exchange needle insertion, and build a strong line of defense for your funds.

Secondly, it can effectively prevent significant losses caused by impulsive trading. Even if you lose your rationality at some point, you will lose at most one third of your funds, and the remaining funds can still provide you with the opportunity for a comeback.

Furthermore, maintaining a fixed Position helps you maintain a calm mindset. Whether it's a loss or a profit, you can face market fluctuations with a more calm attitude, thereby making wiser decisions.

When opening a position, I am accustomed to going all in at once. For example, when I have 10,000 U as capital and I am bullish on a certain currency, I decisively enter the market with a full position. Of course, this is based on my precise grasp of the entry point. If you have tight funds, or if you are currently experiencing significant losses or even burdened with debt, then please proceed with caution. You can start with 1,000 yuan or 2,000 yuan, and divide it into three equal parts for gradual operations. Don't underestimate the amount, because in this market, the amount of funds is not the sole factor determining success or failure.

As for how to reduce losses, I have three suggestions for your reference:

First, stay away from high leverage. Leveraging more than 5 times for altcoins and more than 10 times for Bitcoin are high-risk choices that often lead to irreversible consequences.

Second, avoid trading against the trend. When the market is clearly bullish, do not attempt to go short. Although short opportunities do exist, you need to be clear about your risk tolerance. It's better to miss a whole round of market movements than to take the risk of trying to time the top or bottom against the trend.

Third, trading must be logical. Don't blindly place orders based solely on graphics, but make decisions based on market dynamics, fundamental analysis, and other factors.

Follow me and leave a comment. In the next issue, I will explain the risk control methods of institutional traders. Stay tuned!
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