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

In trading, a common issue is that when the market rises, investors feel they have too small a position; conversely, when the market falls, they feel they have too large a position. This situation indicates that investors have not properly managed their positions.

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

Here are some recommendations for position management:

1. Do not invest all your funds in the market at once, unless the investor has decided not to adjust their position anymore.

2. Even if the investor is very optimistic about a certain cryptocurrency, they should build their position in batches. Investors should maintain a sense of respect for the market and avoid excessive confidence and impulsiveness.

3. When averaging down, the price difference should be greater than 20%. Otherwise, there is no need for the investor to average down, especially in cases of insufficient funds.

In summary, position management is very important. Investors do not need to operate frequently or use complex technical skills; as long as they can manage their positions well, they can outperform most cryptocurrency friends.