Retail investors commonly feel that their positions are too small when they are making profits, and too large when they are incurring losses!

In trading, there is a common issue where when the market rises, investors feel that their positions are too small; and when the market falls, they feel that their positions are too large. This situation indicates that investors have not managed their positions effectively.

In reality, whether the market rises or falls, if investors have not fully established their positions, they will regret their initial hesitation. Conversely, if investors have positions, they will regret why they didn’t liquidate. This mindset is a norm for cryptocurrency traders. Therefore, we often say not to easily adjust your positions. When adjusting positions, it is essential to carefully consider how much risk you can bear. If investors are sensitive to unrealized gains or losses, then they only need to retain a portion of their base position.

Here are some suggestions regarding 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 the investor is very optimistic about a particular cryptocurrency, they should build 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, investors do not need to average down, especially when funds are insufficient.

In summary, position management is crucial. Investors do not need to operate frequently or use complex technical skills; as long as they can manage their positions well, they can outperform most fellow traders.