Position management is like fastening a seatbelt for your account—mistakes are controllable losses, correct decisions lead to stable profits, and during volatility, your account won't explode.
Starting with a small account of 1000U, this method ensures every trade is traceable.
**Step 1: Keep the Bottom Line** No single trade should risk more than 10% of the total account. With 1000U, only use 100U per trade; risking more is suicidal. The benefit is simple—even if you hit a snag, you won't create a hole, and your account always has the capacity to rebound.
**Step 2: Follow the Account, Not Emotions** If your account grows to 1200U, raise the single trade limit to 120U. Not because you've suddenly become smarter, but because the account itself is growing. Conversely, if it drops to 900U, reduce the next trade to 90U or even less. The only goal during a loss phase is to stay alive; don’t think about turning it around in one shot.
**Step 3: Diversify Entry Points, Reject All-In** Divide your planned capital into three parts, and try 7% each time to test the waters. For example, with a 100U position, first invest 70U to gauge the reaction, then add another 70U after confirming the trend. If wrong, the loss isn't much; if right, the market will give you a chance to add positions.
**Step 4: Stop-Loss Always Comes First** Before entering a trade, decide how much loss you're willing to accept. Commonly, -8% to -12%; for a 100U position, at -10%, the maximum loss is 10U. Determine the worst-case scenario first, then pull the trigger. After making a profit, remember to move the stop-loss upward, turning floating gains into real profits.
**Step 5: Layered Profit Taking** As you approach the take-profit level, first cut 70%-80% of your position to lock in the main profits, and leave the rest with a trailing stop to follow the trend. Use the profits already earned to bet on potential continuation of the trend.
**Step 6: The Risk-Reward Ratio Is Key** Don’t always focus on how many trades you win or lose. The key is "how many losses can be offset by one win." Even with a 40% win rate, as long as the risk-reward ratio stays above 1:2, your account will grow in the long run. No matter how tempting SOL's market is, without proper position management, it’s all useless.
Steady position management safeguards your operations, stop-loss protects your principal, and the risk-reward ratio determines how far you can go. Opportunities are abundant in the market, as long as your account is still alive.
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ChainMaskedRider
· 01-16 18:09
Bro, I've heard this theory many times before. The key is still in execution. As soon as the market starts to rise, I want to go all-in.
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LayoffMiner
· 01-16 18:08
Exactly right, but too many people still fall into emotions despite understanding this principle. When the market rises, they start to go all-in.
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OnchainHolmes
· 01-16 18:04
Wow, this is proper risk management. It's not something that fools dreaming of a quick turnaround every day can understand.
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MEVHunterBearish
· 01-16 17:59
Exactly right, this is the kind of awareness seasoned investors should have—those who don't go all-in live the longest.
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CommunitySlacker
· 01-16 17:59
Honestly, I've heard the 10% ratio so many times that it's worn out, but how many people can actually achieve it... Anyway, I'm the kind who often goes all-in and gets beaten badly.
Position management is like fastening a seatbelt for your account—mistakes are controllable losses, correct decisions lead to stable profits, and during volatility, your account won't explode.
Starting with a small account of 1000U, this method ensures every trade is traceable.
**Step 1: Keep the Bottom Line**
No single trade should risk more than 10% of the total account. With 1000U, only use 100U per trade; risking more is suicidal. The benefit is simple—even if you hit a snag, you won't create a hole, and your account always has the capacity to rebound.
**Step 2: Follow the Account, Not Emotions**
If your account grows to 1200U, raise the single trade limit to 120U. Not because you've suddenly become smarter, but because the account itself is growing. Conversely, if it drops to 900U, reduce the next trade to 90U or even less. The only goal during a loss phase is to stay alive; don’t think about turning it around in one shot.
**Step 3: Diversify Entry Points, Reject All-In**
Divide your planned capital into three parts, and try 7% each time to test the waters. For example, with a 100U position, first invest 70U to gauge the reaction, then add another 70U after confirming the trend. If wrong, the loss isn't much; if right, the market will give you a chance to add positions.
**Step 4: Stop-Loss Always Comes First**
Before entering a trade, decide how much loss you're willing to accept. Commonly, -8% to -12%; for a 100U position, at -10%, the maximum loss is 10U. Determine the worst-case scenario first, then pull the trigger. After making a profit, remember to move the stop-loss upward, turning floating gains into real profits.
**Step 5: Layered Profit Taking**
As you approach the take-profit level, first cut 70%-80% of your position to lock in the main profits, and leave the rest with a trailing stop to follow the trend. Use the profits already earned to bet on potential continuation of the trend.
**Step 6: The Risk-Reward Ratio Is Key**
Don’t always focus on how many trades you win or lose. The key is "how many losses can be offset by one win." Even with a 40% win rate, as long as the risk-reward ratio stays above 1:2, your account will grow in the long run. No matter how tempting SOL's market is, without proper position management, it’s all useless.
Steady position management safeguards your operations, stop-loss protects your principal, and the risk-reward ratio determines how far you can go. Opportunities are abundant in the market, as long as your account is still alive.