The core of trading is position management

The following content is compiled from Bit Langlang’s core viewpoints
Aimed at providing you with a clear and executable trading framework

I. Core Principles of Position Management

Scientific position management is the primary defense for controlling risk and avoiding fatal losses.

1. Position Splitting and Fixed Positions

It is recommended to divide your total capital (for example, 30,000 USDT) into three equal parts. Only use one part (10,000 USDT) for each trade, and strictly adhere to leverage limits: no more than 10x for Bitcoin, no more than 5x for altcoins.

Dynamic Balancing:

After a loss in a single trade, replenish the loss from external funds; after a profit, withdraw the profit. Always keep the principal of each trading unit fixed at 10,000 USDT.

Upgrade Condition:

When total profit reaches 60,000 USDT (i.e., doubling your principal), you can increase each position to 20,000 USDT, and so on.

2. Position Opening Habits and Risk Control

Concentrated Position Opening:

With position splitting as the premise, for a single coin in a single market move, prefer to fill one full position at once (i.e., 10,000 USDT with appropriate leverage). This is based on precise entry point control.

Strict Stop Loss:

Combining low leverage with preset stop loss can greatly reduce liquidation risk.

3. For Traders with Limited Capital

If funds are tight, losses are significant, or debts exist, never overinvest. Just deposit 1,000-2,000 RMB, also split into three parts, and start accumulating steadily with small amounts. The amount doesn’t matter; what matters is building the correct system through this process.