Uncle K's Position Risk Control Method

Everyone has different judgments and acceptance of risk each time they enter the market, and there is no fixed standard or rule that applies to everyone.

There is a relatively simple and practical principle for reference, which is to consider the worst-case scenario before any bet, or to clearly set a stop-loss line. Moreover, one should seriously think about whether they can calmly accept it when this worst-case scenario actually happens or when the stop-loss condition is triggered.

If after consideration you find that you cannot accept the possible worst-case scenario, then you should take decisive action; either reduce your position to minimize potential loss risk or completely abandon this position to avoid falling into a predicament that could severely impact your life.

Always remember, even in what seems to be a booming bull market, there is no cryptocurrency worth risking your life and your family's happiness on, not even mainstream currencies like Bitcoin that are highly publicized. Therefore, when investing, you should only bet within the range of risks that you can accept, ensuring that it does not negatively affect your quality of life and family relationships.