In trading, the trading position is very important, affecting the psychology of both profit and loss, as is the case for each individual.
That is the key to psychological reactions when giving/giving orders, when researching and many other aspects. I share this topic for everyone to refer to
1. What is position?
You often listen to others telling you to change your position, your position is too bad so you should cut... etc., your personal position is your starting line when entering the high or low market.
Position is easier to understand related to money, knowledge and experience in your market, based on that you will know where you are and what you should do? And how to handle your investment journey.
The lesson of position is that after a season of being at the top of private, I understand many things. If you don't know your position clearly and don't know how to invest properly, whether it's an uptrend or a downtrend, you'll quickly burn out and go into debt.
2. Why is position so important? So how important is position? Must understand position types!
For example, if you are a newbie, your position (starting line) is almost 0 knowledge. No experience, not much experience, no relationships. To put it bluntly, it's nothing but some money put into the market hoping to change your life.
Capital position: Big capital, small capital
Knowledge status: None, rudimentary, sufficient and in-depth.
Experience: Loss and loss, how expensive are market lessons? Time also contributes to experience, a full-time person will be different from a person who only spends a little time on it.
As in trading, a bad and ineffective entry will affect your order processing process, making it easy to lose money of course. If you have a low investment position, if you can't find a suitable direction, it's easy to run with the headlights in front of the car and get lost.
Many people who don't know clearly think that if they have a lot of money they can't make it in the market until they get stuck and have no money left. They have to borrow money to realize that they don't have any knowledge at all, they're like a gambler and leave very depressed. owl. owl.
In the opposite case, a person in a high position with a lot of experience, good trading skills with a lot of experience with market fluctuations, good market feel and a large capital position, when trading or doing anything in crypto They will all take risks very tightly, ensure profitable positions and have a stable trading system or research and cheating skills... to bring good ROI whether downtrend or uptrend.
⇒ Position is so important, but many people pay little attention because in the past I didn't care much about this case until the losses were gone before adjusting.
3. Determine each individual's position!
Although F0 has not entered the market as much as in 2020 and 2021, you should still determine your position properly and clearly to determine the right way to play for yourself. It's okay to be rich a little slower than others, don't look at other people's pockets.
Capital position: How much capital can you lose? 100$ - 1000$ or 10000$ to start, is it okay to lose it all? For me, capital is not the most important factor. Capital will be based on external position, family situation, outside job or in general, current income! Even if you lose everything, you can still work normally. You need to clearly identify these parts to get the best playing psychology! It's not like you can stand up just because it breaks, in finance, sometimes it breaks and it breaks.
Knowledge position: When starting out, most people's crypto knowledge is the same as everyone else, but the difference lies in where does the external knowledge come from? People in finance, business or majors, how much do they know? These things are related to investment thinking. It's easier for those who are available to play, grasp the principles, and be careful in investing, and the ability to absorb also has a huge difference. If there is no foundation, no fomo and no knowledge, the chicken will be eaten.
Relationship status: This also has a big influence, having a teacher to guide you is very good! If you don't have one, you can swim by yourself. If you swim by yourself, you can easily drown. So this is also a huge factor affecting the position. Having someone to guide and guide you will reduce the possibility of swinging to the top, being scammed or hitting long/short positions.
And based on those factors, it will be divided into:
Low position, weak foundation: Little capital, no knowledge, no skills, no relationships, in general, completely white and very easy to fall into the psychological trap of the market, very easy to get scammed and burn your account, leading to loans. borrow.
If you feel that you are confused, then immediately take a low position and restructure everything so that you won't lose money in the long run. How to play for low-status people below.
Average position: Having a fair amount of experience in the market, maybe surviving the recent downtrend season or having skills in analyzing projects, technical analysis tools or knowing the niches in the market such as airdrop, IDO, Wl…. And most of all, make a profit in the market!
This is still an average position because it depends on capital. Although short-term play is profitable, it is not much and if you lose everything, the ability to do it again is not high, depending on the market a lot.
The clearest example is high status, buying a lot of BNB stakes to eat Launchpad, launchpool is getting richer and richer, you guys know that but don't have enough capital to do that, even if you eat it, it's very little. That is the most obvious difference, there are many other very big differences between the position barriers.
High, good position: Knowledge, experience and experience + capital are all very good, abundant and very specialized. These people play very well, trade short-term to relieve their psychology, but most of them invest long-term. Like holding BTC, ETH to stake or holding BNB to eat launchpad..
They may have a support team, employees doing time-consuming work, or have financial freedom and want to experience a new market like crypto. It could also be that they are brothers through many seasons, have their own trading system and stable profits... A completely different position compared to the remaining top retail.
We always want to change positions, hoping to win x10 x100 port odds to change quickly. But first understand it, know where you are to have a chance to get higher, otherwise it's like playing a lucky lottery game, after that you will be scammed by the market a few times and then go.
4. Direction for position
With market niches, separate ways of playing can also be combined. I will share the direction for low positions and medium positions. As for the high position, I don't dare discuss it because I'm still trying to rise to that position
5. For low positions, you need to understand that the biggest barrier is psychology because in a bull run, capital is not necessarily the most important. How to feel most comfortable and play most effectively.
If you have little capital to play and losing all affects your life, solve that problem immediately by going to work to earn income and use your savings to play instead of having money. If you have any income, then you will have more or less any capital. It's easy to lose because the fear of losing is very strong.
An effective way to play is to focus on long-term niches that require little capital and require a lot of time to have a good psychological position.
Focus on airdrops, IDO hunting or hot freemint NFT, schoar gamefi, coin mining to also gain capital to buy long-term coin holding. This time is very good to play because there are waves, more or less if you concentrate. This is very easy, this season there are a lot of support tools and the cost is not high, under 100$ to play. Don't rush into the future to do anything, you won't eat as much as this and the psychology of the position is also very different.
If you have a lot of time and want to focus entirely on crypto, you can apply for an internship at crypto teams or groups to set up airdrop teams. Bull season, according to communities, is also a way to get information quickly and gradually change your position.
6. With an average position.
Trade, hold, cheat airdrop, NFT... everyone knows it. I also simply do airdrops, hold top coins.. accumulate capital to play less risky and more sustainable ways to make money in crypto. Giving up future is still best!
Maintaining a positive income source (income>expenditure) under all situations is the best way. Small or large profits are not as important as profitable positions. Still believe in airdrop for Layer projects. I take capital from winning airdrop bets or hunting for free mints to reinvest and buy long-term coin holding.
Experienced people tend to like to switch to DEX degen to accumulate capital, and so do I. Since SOL waves, AVAX and SOL are having very good volumes to play.
⇒ In short, in this position, improve skills, accumulate capital and build a solid foundation because crypto fluctuates very violently.
7. Conclusion
Position is the first lesson and throughout the crypto journey, each person also deeply understands this lesson. Always be disciplined about position lessons and play according to the plan so that no matter which direction the market goes, you can be flexible. Hope you guys find the right direction.
Thank you for reading and sharing.
