Trading for profit boils down to two things working together: finding the right entry points and managing your positions well.



Some people only know how to identify entry points but can't manage their positions, resulting in going all-in and getting liquidated when the market slightly retraces. Others hold onto their positions without daring to move, unable to see key market nodes, and end up missing the best opportunities. Both approaches are flawed.

True experts tie position size to the type of market node. The kind of buy point determines the appropriate position size. The four tactics—scaling in, light positions, locking positions, and adding positions—are not used randomly but are decided based on the nodes you identify.

**Core Logic of Nodes and Positions**

The fundamental principle is simple: the size of your order must match your confidence level in that buy point.

Different nodes carry different risks and rewards. Some nodes, once confirmed, are highly likely to rise; others, while offering larger gains, have longer validation cycles. Due to these differences, your position strategy must vary accordingly.

**Specific Strategies for the Eight Major Nodes**

**Exploratory Nodes (Scout Entry, Light Validation)**

These nodes have great potential but initially lack high certainty. There are two typical scenarios:

First, intraday bottom rebounds. When the market is panicking and prices hit their lowest point, the probability of a "reversal" is high. But the bottom is hard to pinpoint precisely, and prices may dip further during extreme panic. Therefore, use an extremely light position, such as 10% of your total capital, to test whether the market is truly rebounding.

Second, the first correction of a strong coin. Some coins perform exceptionally well in a cycle and suddenly undergo a correction. The logic for entering here is "the strong get stronger." However, since it's the first correction, it's unclear whether the rebound will continue or if a reversal will break lower. Enter with a light position, and add more after confirming the rebound.

**Confirmation Nodes (Moderate Position, Gradual Building)**

These nodes feature clearer signals and a forming market consensus. You can upgrade from a light position to a moderate one, such as 20-30% of your total capital. Enter gradually through multiple batches rather than all at once.

**Trend Nodes (Add-on Window, Follow the Trend to Strengthen Positions)**

When a major cycle is confirmed to be upward or downward, each new node presents an opportunity to add. At this stage, you can push your position to 30-50%. The pace of adding should follow the trend's strength—the stronger the trend, the more you add.

The key is: these four principles—scaling in, light positions, locking positions, and adding—are not independent but are used cyclically within the same trading cycle. Finding nodes is just the beginning; managing your positions well is the true winning mindset.
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