Some people often equate trading with gambling; indeed, there are many similarities, and some trading masters believe trading is gambling. But gamblers go all in, while real traders do not. As the saying goes, as long as the green hills remain, one need not worry about firewood. Every trade carries risk, and even the most skilled traders do not have 100% certainty. Therefore, managing your position and controlling trading risks can ensure your survival in the market and better execution of your trading system.
Below, I will share a more reasonable position management. Short-term or swing trading: 1. Before you are sure you can achieve stable profits, use smaller amounts of capital for practice in each trade. Only trade with larger amounts when you have stable profitability and execution of your trading system. 2. Spot trading: 10%-15% each time is sufficient. Pay attention to details, and according to different market conditions, divide the 10%-15% of funds into three parts, leaving room for increasing positions. Never use 10%-15% each time; if you increase your position three times, your position will be too large, and if you incur losses, you will lose a lot of principal. 3. Contract trading: Don't use too much leverage; always remember that high leverage is not your friend. Contracts should be based on the losses you can afford. Taking 1 million as an example, the maximum loss you can bear each time is 3%, so you must set a stop loss at 3%, which is 30,000. It is recommended to keep the loss at 1-2% each time. For example, if you open a BTC long position, set your stop loss 1% below the opening price; if you lose 1%-2% of your principal, that means a loss of 10,000-20,000, and you can open a position of 1 million-2 million USDT directly in BN contract trading.
Long-term trading: There are not many long-term operations, and the holding period is relatively long, allowing for about 20-25% of the position each time.
A sincere reminder: Don't think about how little I invest each time, how much can I earn? If you are so eager for success, why not go all in? Why not gamble? As long as you survive in the market and achieve stable profits, you will eventually realize your dream of wealth.