Common issue among retail investors: when they profit, they feel their position is too small; when they lose, they fear their position is too large!
In trading, there is a prevalent issue where when the market rises, investors feel they hold too small a position; when the market falls, they feel their position is too large. This situation indicates that investors have not reasonably controlled their positions.
In reality, whether the market is rising or falling, if investors have not fully built their positions, they will regret their hesitation. Conversely, if investors have positions, they will regret why they did not clear them. This mindset is a norm among crypto traders. Therefore, we often say, do not easily adjust your positions. When adjusting positions, you must carefully consider how much risk you can bear. If investors are sensitive to unrealized profits or losses, then they only need to retain a portion of their base position.
Here are some suggestions on 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 investors are very optimistic about a certain cryptocurrency, they should build their positions 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 averaging down, especially when funds are insufficient.
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