#大户持仓动态 "Top Ten Insights in Trading"②: Position management, can you witness the next bull run?

In this day and age, the most common tragedy in the crypto world isn't misreading the market— that's really nothing. What is truly fatal is getting the Position wrong just once.

How many people's accounts have "evaporated" silently like this? Flip through the account records and you'll understand that it was never due to a wrong trend judgment, but rather because the action was too aggressive.

**Why do most people's losses not come from market judgment?**

Look for a position that has been liquidated yourself, and nine times out of ten it points to the same issue: the position far exceeds the range that rational thinking can bear.

The routine basically evolves like this:

Feeling that this market trend is "promising" → Starting to increase Position, even using leverage → The market experiences a normal correction → Psychological defense line collapses → Starting to hold the position → Losses become larger and larger → Finally exiting

Ironically, the market itself is not at fault; it's your Position that has betrayed you.

**Why do professional traders always take very light positions?**

It is not because they lack confidence in the market; on the contrary – it is precisely because they are too aware of one fact: any trade can go wrong.

So their position logic is very restrained:

Control a single loss to within 1%-2% of the total capital. This way, even if there are consecutive losses, the account remains within a controllable range. They can always give themselves a chance to "try again."

Do you understand? Position is essentially a form of respect for market uncertainty.

**The Three Mental Traps Most Easily Fallen Into by Heavy Position Trading**

The first trap: This market is different. The market doesn't care where your confidence comes from; it always operates according to its own logic.

The second trap: a pullback can bring it back. But the problem is, pullbacks are often the signal for the start of a new trend.

The third trap: not setting stop-loss orders and stubbornly holding onto positions. The true downward trend is best at destroying all "holding faith."

**Three Practical Position Control Bottom Lines**

Don't think about complicated risk models anymore, just remember these three points:

1. The maximum loss per transaction should not exceed 2%. What is mentioned here is not the Position itself, but rather "how much you will lose in the worst-case scenario". You need to be clear about the account.

2. Always keep available funds above 50%. This is your lifeline in case of sudden extreme market fluctuations. Without this buffer, you are defenseless against any severe market volatility.

3. The heavier the Position, the longer the holding period must be. Heavy positions for short-term trading? That's basically like shooting yourself in the foot.

**Final words: Why is position management more critical than technology?**

Technical judgment errors, at worst, can be reviewed once, and we can do better next time.

But position management mistakes? You might be directly eliminated by the market, and there won't be a next time.

Those who can survive to see the next bull run are not relying on precise predictions, but on never being prematurely exited.

The truth about Position management is quite heartbreaking: it is not a tool for making money, it is a tool to keep you alive. $BTC $ETH