Why can't you always control your position? The reason is revealed!
Many people who speculate in cryptocurrencies always tend to ignore position control, resulting in serious losses. So, why can't so many people achieve effective position control? The reason is actually very simple.
1. Greed is at work
Most people want to make a quick profit. Once they see a good market, they can't help but go all out, thinking they can make a lot of money. But this greed often makes people forget the risks. Once the market fluctuates, the losses will quickly magnify.
2. Lack of planning
Many investors do not have a clear position management plan and always operate according to their emotions. They increase their positions when they are bullish, and they rush to sell when they are bearish. Lack of strategic planning leads to unreasonable capital allocation.
3. Ignoring risks
Many people do not have a good understanding of the volatility of the market and ignore the importance of risk management. They are unwilling to accept small losses and have been looking forward to market corrections. As a result, they get deeper and deeper, and finally can only bear it.
4. Not knowing how to stop loss
Effective position control is inseparable from a reasonable stop loss mechanism. Many people do not know when to reduce or clear their positions, resulting in increasing losses. Without setting a stop loss point, it is like sailing in the sea without a compass.
How to solve it?
To achieve position control, you must first learn to invest rationally, make a clear position plan, and avoid greed. At the same time, understand the volatility of the market and dare to stop losses decisively to avoid a rapid shrinkage of funds.
Position control is not only a numerical calculation, but also a control of mentality. If you control your position well, your risk can be greatly reduced and your income can be more stable.
