Legendary stocks collective gains! Enlightenment? Demon Lord Heart Sutra - Wonderful Awakening and Origin (All things are energy, cycles, circles)

Position Management: The Way of Unified Attack and Defense Under “Miao Jue Yuan Sheng”

True position management,

is not simply about “percentage of holdings,”

but the ultimate reflection of a trader’s depth of understanding,

risk philosophy, and market response ability.

It is conducted after insight into the “Three Realms of the Market” (energy,

cycles,

circular motion),

as a strategic resource allocation and tactical risk pricing.

This article uses the “Magic Lord Heart Sutra”’s “Miao Jue Yuan Sheng” as the framework,

to build a position management system from mental principles to execution.

Magic Lord Heart Sutra Overview: All things are energy,

All things are cycles,

All originate from circles.

Magic Lord Heart Sutra and Miao Jue Yuan Sheng,

Yuan Sheng is the highest realm of the Magic Lord Heart Sutra,

capable of deconstructing all methods,

deriving all methods,

driving all methods.

Magic Lord Heart Sutra,

Miao Jue Yuan Sheng,

can control all methods! Including but not limited to family nurturing mentalities,

leading strategies,

low buy-in of strong stocks,

board trading strategies like second-board leadership,

swing low buy-in,

Chan Theory,

dynamic position management,

first-board arbitrage,

trunk and branch theory,

Xiao Ming mental method,

various trader layouts,

integrating hundreds of schools into one!!! Using the core bridge of philosophy and mathematics!

To understand the Dao through philosophy,

to master the art through mathematics!

Using the Dao and art based on the law of causality!

Thus, capable of mastering all methods,

without being bound by any method!

Walking with the Dao,

using the art as a blade,

Miao Jue Yuan Sheng controls all methods,

breaks all methods!

I.

Mental Principles Overview: Position as a Quantitative Response to “Momentum”

The highest realm of position management,

is “unity with momentum.”

Here, “momentum” refers to the market’s essence in the “Three Realms”:

· Energy View: Position is a measure of invested energy.

When bullish energy is strong,

increase “ammunition”;

when energy is chaotic or bearish dominance,

shrink the “defense line.”

· Cycle View: Position is a function of the current cycle stage.

During the rising cycle, “sow” and “grow,”

during the retreating cycle, “harvest” and “hibernate.”

· Circular Motion View: Position reflects the phase of circular movement.

In “growth” (initiation), probe,

In “stability” (main ascent), follow,

In “oscillation” (volatility), contract,

In “extinction” (turning point), hold cash.

Therefore,

every adjustment of position

is your “dialogue response” to the market,

based on “Miao Jue Yuan Sheng.”

II.

Three-layer Framework: Strategy,

Tactics, and Dynamic Execution

1. Overall Strategy: Perceiving the Market’s “Season” (Aligning with Heaven’s Timing)

This is the foundation of the position pyramid,

determined by the overall “energy-cycle” of the market.

· Spring (Startup): Market energy begins to gather,

positions can gradually increase to 30-50%.

Aim to be present at trend emergence.

· Summer (Main Rise): Energy surges,

trend becomes clear,

positions can actively increase to 50-80%.

Core goal: let profits run along the main channel.

· Autumn (Volatility): Energy diverges,

cycle shifts,

positions should be quickly compressed below 30%.

Focus on defense and observation,

to avoid significant asset retracement.

· Winter (Retreat): Energy disperses,

risks are released,

positions should be minimized to 0-10%,

or even fully cash out.

Goal: preserve capital,

wait for the next spring.

2. Tactical Allocation: Building the “Moat” of Assets (Establishing the Terrain)

Within the strategic framework,

disperse risk.

· Single Stock Limit: No more than 20-30% of total funds in one stock.

This shows absolute respect for “black swan” events,

preventing a single misjudgment from causing heavy losses.

· Sector/Correlation Limit: No more than 40% of total funds in highly correlated sectors.

Prevent systemic shocks from industry-wide negative news.

· Style Balance: Allocate positions with different risk-reward attributes,

such as “Core Trend Positions” (e.g., Chuang Yuan Technology) + “Flexible Trading Positions” + “Arbitrage Defensive Positions.”

To adapt to market style rotations,

smooth the capital curve.

3. Dynamic Position Control: The “Rhythm Art” of Buying and Selling (Doing Your Best)

This is the most delicate operational layer,

deeply tied to “nodes” and “causality.”

· Buying: Pyramid layout

· Initial Entry (10-20%): At the “initiation node” or first “strong pullback node,”

place a “trial order.”

Purpose: verify judgment at minimal cost,

let the market explore for you.

· Confirm and Add (Increase to planned position): When the stock price confirms your “causality” judgment (e.g., volume breakout,

divergence followed by convergence),

at the “acceleration node” or second “pullback node,”

add to reach the planned maximum (e.g., 20% of individual stock).

This is the key to “maximizing profit from correct judgment.”

· Selling: Reverse pyramid exit

· Partial Profit Taking: At the “exhaustion node” near trend end,

or when reaching preset targets,

sell in 2-3 batches.

Not aiming to sell at the highest point,

but to lock in most profits during the main upward wave.

· Immediate Stop Loss: When the price action invalidates your buy logic (e.g., breaking the “lifeline” or key structure),

regardless of profit or loss,

execute stop loss immediately.

This is the “emergency escape mechanism” for positions,

the top priority for survival.

III.

Ultimate Integration: A Case Study of “Chuang Yuan Technology”

Suppose your total capital is 1 million,

how to operate Chuang Yuan Technology using the above system?

1. Strategic Setting (Season Judgment): You “see” its five-dimensional theme as a huge energy source,

market is in the “Summer” of high-end manufacturing.

Decide to raise the overall position to 60% (60,000).

2. Tactical Allocation (Moat): Set a single stock limit at 30%,

max investment in Chuang Yuan Technology is 300,000.

3. Dynamic Execution (Rhythm Art):

· First position (causality trial): When it first shows volume divergence and stabilizes after a pullback to the 10-day moving average (“circular motion pullback node”),

buy 100,000 (10% of total).

· Add position (confirmation follow-up): When the stock then rebounds with volume,

confirming “divergence turning into convergence” (“energy re-acceleration node”),

add 200,000,

bringing total holdings to the planned 300,000.

· Holding and adjustment: The stock enters a plateau oscillation.

As long as it does not break below the support (lifeline),

hold steady.

If other themes (like robotics) erupt during this period,

and market “summer” energy becomes stronger,

you might temporarily raise the overall position to 70%,

but still strictly keep individual stock position at 300,000.

· Exit: If the stock shows volume expansion and stagnation at high levels,

with “volume-price divergence” (“exhaustion node”),

start selling in batches.

If on a certain day volume breaks below the support,

liquidate to stop loss.

IV.

Core Mental Formula

The essence of position management,

is “using capital allocation to manage your cognitive risks and emotional fluctuations.”

· Forget cost,

focus only on correctness: The basis for position adjustment is the market’s objective trend (momentum),

not your cost basis.

· Win through correction,

not prediction: There is no perfect initial position,

only continuous dynamic correction based on market feedback (causality).

· Survival,

is the prerequisite for everything: Strict position discipline,

ensures you always have the qualification to play your next card in the market.

When you internalize position management as an instinct,

you are no longer “controlling” the position,

but “using” the position,

making it your most powerful tool to perceive the market,

integrate into the trend,

and ultimately realize "Miao Jue Yuan Sheng,

walking with the Dao."