Some people often equate trading with gambling. Indeed, there are many similarities between the two, and some trading masters believe that trading is gambling. But gamblers go all in, while real traders do not. As the saying goes, 'If you keep the green mountains, you don't have to worry about firewood.' Every trade carries risks, and even the most skilled traders do not have a 100% guarantee. Therefore, managing your position well and controlling trading risks can ensure your survival in the trading market and better execute your trading system.
Below, I will share a more reasonable position management. Short-term or swing trading: 1. Before you are sure that you can achieve stable profits, practice using a smaller amount of capital for each trade. Only trade with larger amounts when you have stable profitability and execution of your trading system. 2. Spot trading: 10%-15% each time is sufficient. To be more precise, based on different market conditions, divide the 10%-15% of capital into three parts, leaving room for adding positions. Never use 10%-15% each time, as if you add three times, your position will be too large, and if you incur losses, you will lose a lot of principal. 3. Contract trading: Don't use too much leverage; always remember that high leverage is not your friend. Contracts should be based on the losses you can bear. For example, with 1 million, the maximum loss you can bear each time is 3%, which means you must set a stop loss at 3%. Each time, it is recommended to set the loss at 1-2%. For example, if you open a long position in BTC, set your stop loss 1% below the opening price. If you lose 1%-2% of your principal, that is a loss of 10,000-20,000. You can open a position of 1-2 million USDT and trade directly on the BN contract.
Long-term trading: There are not many long-term operations, and the holding period is relatively long. You can use about 20-25% of your position each time.
A sincere reminder: Don't think that my every investment is small and how much can I earn? If you are so eager for quick success, why not go all in? Why not gamble? As long as you survive in the market and achieve stable profits, you will eventually realize your wealth dream.