Six Fundamental Principles of Position Management:
First: Do not operate with a full position; always maintain a certain proportion of reserved funds:
Second: Buy and sell in batches to reduce risk, dilute costs, and amplify profits. The advantage of buying in batches when prices go down and selling in batches when prices go up is that your average price is lower than others, resulting in higher profits.
Third: When the market is weak, hold a light position; in a bear market, it is best not to exceed half a position. In a strong market, a heavier position can be taken; in a bull market, it is recommended that the maximum position be at 80%, with the remaining 20% in short-term or reserved funds to respond to unexpected events.
Fourth: Adjust your positions accordingly as market conditions change; appropriately increase or decrease positions.
Fifth: During a market downturn, you can hold a short position temporarily while waiting for opportunities to arise.
Sixth: Position swapping: retain strong cryptocurrencies and sell weak ones.
The above six principles apply to both spot and contract trading. If you still don't understand, please read it carefully several times; revisiting knowledge can enhance understanding, making it possible to become a teacher.
