Here are some practical tips for position management:



1. Never go all in
No matter how optimistic you are about the market, you should use at most 70% of your Position and keep 30% for emergencies. When the market suddenly reverses, having bullets allows for flexibility, and having room enables recovery.

2. Build positions in batches and gradually increase the investment; going all in at once can easily trigger stop-losses due to short-term fluctuations.

Recommendation: Position 1: Bottom fishing/breakthrough position building (light position)

Position 2: Confirm trend direction (add position)

Position 3: Trend-following push-up (heavy position)
This position is like climbing stairs, advancing step by step, capable of both offense and defense.

3. Do not increase your position when in loss, and do not cling to battles during a rebound.

If you incur a loss, do not try to average down the cost; that is the most common trap retail investors fall into. True experts would rather cut their positions and take a break, waiting for the next opportunity when the trend reverses.

4. You should plan your stop loss and take profit in advance.

Before buying, you need to be clear: where is the stop-loss point? Where do you sell if it drops? Where is the take-profit point? Where do you cash out if it rises?

It is recommended to set the profit-loss ratio for each trade to at least 1:2. This way, even if the success rate is only 50%, it will still be profitable in the long run.

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