Retail investors often face a common issue: they feel their position is too small when they make a profit, but when they incur a loss, they worry that their position is too large!

In trading, there is a widespread problem where investors feel they hold too little when the market rises, and too much when the market falls. This situation indicates that investors have not properly managed their positions.

In reality, whether the market is rising or falling, if investors have not fully built their positions, they will regret their hesitation. Conversely, if investors have a position, they will regret not having liquidated it. This mindset is a common state for cryptocurrency traders. Therefore, we often say that you should not easily adjust your positions. When adjusting your position, you must carefully consider how much risk you can tolerate. If investors are sensitive to floating profits or losses, they only need to maintain a portion of their base position.

Here are some suggestions for position management:

1. Do not invest all your funds in the market at once, unless you have decided not to make any further adjustments to your position.

2. Even if investors are very optimistic about a particular cryptocurrency, they should build their positions in batches. Investors should maintain a sense of awe towards the market and avoid excessive confidence and impulsiveness.

3. When averaging down, the price gap should be greater than 20%. Otherwise, there is no need for averaging down, especially if funds are limited.

In summary, position management is very important. 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 of their peers in cryptocurrency.