Recently, many people have been asking about position sizing strategies, so let me share my thoughts.
To be honest, position sizing really depends on the individual. If you're using small capital to open 50x or 75x leverage, that itself proves your starting funds are quite limited. Since it's small-stakes trading anyway, there's no need for complex position allocation — the key is to create as many trial-and-error opportunities for yourself as possible.
Now look at large capital. When trading altcoins, you can only open 3-5x leverage at most; anything higher and you can't even enter the position. This isn't your choice — it's a hard limit imposed by the platform. Large capital is forced into low-leverage strategies, which is passive deleveraging rather than active management.
So position sizing really isn't worth discussing much — small capital doesn't need it, and large capital doesn't need to be taught it. The core issue comes down to this: your fund size determines your strategy.
Once small capital compounds into large capital, you naturally start playing it safe. This isn't something you learn; it's something fund size teaches you automatically.
In our circle, very few of the big players were born rich. They all went from zero to one, then one to ten, slowly building their stack through continuous trial-and-error and compounding returns. For example, starting with $1,000 — rather than obsessing over how to allocate it, why not simply divide it into ten or even a hundred parts and test each one? How precious is trial-and-error experience? It's the foundation upon which you'll later rise.
Accumulate enough trial-and-error experience, and when real opportunity finally arrives, you'll soar. I really admire that line from the Three Kingdoms about Sima Yi — my sword is drawn only once, but I sharpened it for over a decade. Ten years sharpening the sword in obscurity, one sword drawn settles all kingdoms. Everyone, keep pushing forward!
Recently, many people have been asking about position sizing strategies, so let me share my thoughts.
To be honest, position sizing really depends on the individual. If you're using small capital to open 50x or 75x leverage, that itself proves your starting funds are quite limited. Since it's small-stakes trading anyway, there's no need for complex position allocation — the key is to create as many trial-and-error opportunities for yourself as possible.
Now look at large capital. When trading altcoins, you can only open 3-5x leverage at most; anything higher and you can't even enter the position. This isn't your choice — it's a hard limit imposed by the platform. Large capital is forced into low-leverage strategies, which is passive deleveraging rather than active management.
So position sizing really isn't worth discussing much — small capital doesn't need it, and large capital doesn't need to be taught it. The core issue comes down to this: your fund size determines your strategy.
Once small capital compounds into large capital, you naturally start playing it safe. This isn't something you learn; it's something fund size teaches you automatically.
In our circle, very few of the big players were born rich. They all went from zero to one, then one to ten, slowly building their stack through continuous trial-and-error and compounding returns. For example, starting with $1,000 — rather than obsessing over how to allocate it, why not simply divide it into ten or even a hundred parts and test each one? How precious is trial-and-error experience? It's the foundation upon which you'll later rise.
Accumulate enough trial-and-error experience, and when real opportunity finally arrives, you'll soar. I really admire that line from the Three Kingdoms about Sima Yi — my sword is drawn only once, but I sharpened it for over a decade. Ten years sharpening the sword in obscurity, one sword drawn settles all kingdoms. Everyone, keep pushing forward!