#加密生态动态追踪 86,000 U of liquidation experience has made me realize a fundamental truth: position management is the most underestimated weapon in trading.

Many people understand position management too superficially. They think it’s just about controlling the size of entry capital, but that’s only the surface. What is the real role of position management? It’s about controlling your trading emotions.

Imagine, fully invested and hitting a limit-down. What would your reaction be? The market instantly provokes you, and rational thinking is long gone. Once emotions spiral out of control, subsequent decisions start to distort—mistakes, adding to positions, stubbornly holding on—eventually sinking deeper, making more errors. That’s why one mistake by many traders can evolve into a disaster.

But from a different perspective, suppose you only invested 10% of your position. Facing the same limit-down, the outcome would be completely different. Your mindset stays much calmer, your judgment clearer. As long as the fundamentals haven’t completely collapsed, you can continue holding, or even add to your position. Even if you finally decide to cut losses, the loss remains manageable and won’t severely damage your confidence.

This is the magic of position management: by controlling individual trade risk, it indirectly protects your mindset. And your mindset directly influences the quality of your responses, which in turn affects the final outcome. The entire chain is connected.

So, how to implement this in practice? My advice is one word: slow.

Develop a habit—only make important decisions after 2:30 PM. Why? Because by this time, the market’s strength or weakness for the day has basically become clear, and the emotional fluctuations of the morning session have settled. You can see a more authentic market state. I’ve found that most of my mistakes stem from rushing—fear of missing out, rushing into trades, rushing to exit. Slowing down reduces these errors by about 90%.

Slow is fast—that’s the most true in trading.

Once you truly understand position management and strictly implement it in live trading, the effects are immediate. You’ll feel the trading rhythm change, your mindset shift, and your perception of risk become clearer. Your overall trading state will upgrade.

Another common pitfall: many retail traders think that because their funds are small, they don’t need to manage their positions. That’s a huge mistake. On the contrary, the smaller the capital, the more precise your position management needs to be, because you can’t withstand any large drawdowns. The essence of position management is risk control, which is also mind-set management. No matter how much your funds are, this is a mandatory course.

Finally, I want to say: no technical indicator or trading system can replace position management. Because position management is not a tactic; it’s a strategy. It’s the foundation of your entire trading framework. If the foundation isn’t solid, no matter how good your techniques are, they won’t save you.

This is my lesson learned from the experience of 86,000 U. I hope it can help traders who are still blindly pursuing win rate and neglecting risk management.