Common problem among retail investors: when they make a profit, they feel their position is too small; when they incur a loss, they worry their position is too large!

In trading, there is a common issue where when the market rises, investors feel they hold too small a position; conversely, when the market declines, they feel their position is too large. This situation indicates that investors are not managing their positions effectively.

In reality, whether the market is rising or falling, if investors have not fully established their positions, they will regret their initial hesitation. On the other hand, if investors do have a position, they will regret why they did not liquidate. This mindset is a norm for cryptocurrency traders. Therefore, we often say not to adjust your position lightly. When adjusting your position, it is essential to consider how much risk you can bear. If investors are sensitive to unrealized gains or losses, then they should only retain a portion of their base position.

Here are some suggestions for position management:

1. Do not invest all your funds in the market at once unless you have decided not to adjust your position anymore.

2. Even if investors are very optimistic about a particular cryptocurrency, they should build their positions in batches. Investors should maintain a sense of respect for the market to avoid overconfidence and impulsiveness.

3. When averaging down, the price difference should be greater than 20%. Otherwise, investors do not need to average down, especially if funds are limited.

In summary, position management is crucial. Investors do not need to operate frequently or use complicated technical skills; as long as they can manage their positions well, they can outperform most fellow traders.