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, dilute costs, and magnify profits. The advantage of buying in batches downwards and selling in batches upwards is that you have a lower average price than others and higher returns.
Third: When the market is weak, you should hold a light position, and it is best not to exceed half of the position in a bear market. When it is strong, you can hold a heavy position appropriately. In a bull market, it is recommended that the limit position is 8 layers, and the remaining 20% short-term or reserve funds should be used to deal with unexpected events.
Fourth: As the market changes, you should make corresponding position adjustments and increase or reduce positions appropriately.
Fifth: When the market is sluggish, you can short-term short positions and wait for opportunities to come.
Sixth: Change positions: keep strong currencies in positions and sell weak currencies.
The above 6 principles apply to spot and contracts
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