Crypto Position Management: The Key to Consistent Profits

Trading requires discipline, and without position management, you never achieve the best results in trading. Many people want to start trading because they want to be rich, but trading requires strategy and position management.

1. After selling your coin, do not buy another coin immediately. Either in an uptrend or downtrend, you have no advantage in quickly buying and selling different coins until you have a better strategy. For example, during a market decline, what is the advantage of selling one coin and buying another? Both have equivalent value.
2. Most people suffer losses when they buy with a gambling mentality. Oftentimes they think that they can buy at the lowest value, but at that time the market correcting itself. They are unaware of the causes of correction; maybe such corrections are based on market reversal. However, they sell their coin with losses because when they buy, the market rises, and when they sell, the market declines.
3. Many people wait for market declines, and when they have notification, they blindly chase the fall and buy immediately without considering if the market plummets again, how to cut losses, or leave. Similarly, some people add positions during decline but never realize the project quality; as a result, they have complete positions that have nothing to deliver to you.
4. It’s better to spend your 50% investment on mainstream currencies, use 1 or 2 crypto coins for mid-term and long-term investment, and only sell when you have a bull market; otherwise, keep hoarding them. The ultimate winners are always the big projects; the smaller projects are only good for a short period.
5. Use 30% of your funds on short-term hot spots; events like halving always have the greatest impact on the coin price performance. You should take advantage of rising and rebounding events.
6. Use 20% of your capital for short-term trading activities; the short-term coins are those that are no longer lasting. Short-term trading is guerrilla warfare. You are required to sit in front of the dashboard to watch your position and make decisions.

In summary, without position management, you never achieve the best results in trading. The crypto world is the most volatile; if you do not have a better strategy and position management, you can lose all of your funds.