How to manage position risk?
Everyone has different judgments and acceptance levels of risk when placing bets, and there are no fixed rules.
Here, there is a simple principle: for any bet, first consider the worst-case scenario or stop-loss line.
In the worst-case scenario or when a stop-loss occurs, can you accept it?
If you cannot accept it, reduce your position or give up the position.
Every time I see someone say they are losing to the point where their life is affected, I feel a bit suffocated.
Even in a bull market, there is no currency that is worth betting your life and your family's happiness on, including Bitcoin.
Only bet what you can accept. How to manage position risk?
Everyone has different judgments and acceptance levels of risk when placing bets, and there are no fixed rules.
Here, there is a simple principle: for any bet, first consider the worst-case scenario or stop-loss line.
In the worst-case scenario or when a stop-loss occurs, can you accept it?
If you cannot accept it, reduce your position or give up the position.
Every time I see someone say they are losing to the point where their life is affected, I feel a bit suffocated.
Even in a bull market, there is no currency that is worth betting your life and your family's happiness on, including Bitcoin.