What are the position management skills in the crypto world?
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First: Do not fully allocate funds, always maintain a certain proportion of reserve funds. Fully allocating funds is like going into battle without any reserves. Especially in unstable market conditions, if the fully allocated funds decline, it will create a passive situation of difficulty in buying and selling. Selling will result in losses, and if not sold, there will be no extra funds to increase the position and dilute the cost. When other market conditions come again, there will be no funds available or already lost. Holding a full position will cause mental imbalance due to market fluctuations. The probability of getting liquidated is higher with a full position than the fantasy of getting rich overnight.
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Secondly: buying and selling in batches can reduce risks, average costs, and maximize profits. The advantage of buying in batches at lower prices and selling in batches at higher prices is that your average price is lower and your profits are higher than others.
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Thirdly: In a bear market, it is best to hold a light position, not exceeding half of the full position. In a bull market, it is advisable to take a heavy position appropriately when the market is strong. The maximum position is at the 8th level, and the remaining 20% is for short-term or contingency funds in case of unexpected events.
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Fourth: With the change of market conditions, corresponding position adjustments should be made, and positions should be appropriately increased or reduced. People are living beings. When the market is strong, I can appropriately reduce the position to capture some profits. When the market is weak, I can appropriately replenish the position to lower the cost. This is making corresponding adjustment actions. After increasing the position, the price will also be very close to or exceed the cost with a slight rebound. For example, when the trend is clearly downward, the position should be reduced. When the trend begins to stabilize and rise, the position should be increased. When you are uncertain about the market and cannot understand it, do not heavily or easily increase the position. When you see support, you can increase the position; when you see pressure, you can reduce the position and realize profits.
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Fifth: During a sluggish market, short-term short positions can be taken while waiting for opportunities to arise. In the late stages of a bull market, early stages of a bear market, or before the bottom stabilizes, short-term short positions or light positions can be taken while waiting for opportunities. However, if you want to operate in this market for a long time, do not stay short for a long time, as not participating for a long time will gradually lose sensitivity to market changes and plate feel. Alternatively, you can use a small amount of funds to operate in the bear market, summarize experience and skills, and exercise plate feel. The operation in the bear market can be carried out in the corresponding layout in the late stages of a bull market and the early stages of a bear market. This is very important.
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Sixth: Position Switching: Keep strong coins in position, sell weak coins, whether it's a pump or a dump, as long as there is fluctuation, it's a good market, there is an opportunity to make money with fluctuation, if a coin is sideways for a long time or the fluctuation range is small, need to switch positions flexibly, not falling in love with a certain coin, should be rational. Seize other market opportunities.