The people who suffer the most losses in the cryptocurrency world often do not do so because they misjudged the direction, but because their positions were wrong from the start. Many overlook this point and only realize in the end – choosing the right coin but losing to their own position management.

There is a saying in the industry: "Those who can buy are students, those who can sell are veterans, and those who can hold cash are experts." However, traders who truly survive in the cryptocurrency market rely not only on that level of composure, but also on a deep understanding of position allocation and risk management.

**What is position management? In simple terms, it boils down to these four questions**

How much money should be invested in this transaction? How to enter and exit in phases? How much ammunition should be left to deal with black swans? To what extent of loss must one admit the mistake and exit?

It sounds simple, but it determines how long you can survive in this market. Reasonable position planning can control risks and prevent your mindset from collapsing.

**Why have so many people stumbled here at this position?**

Entering the market fully can lead to being trapped by a small wave of fluctuations. Or, when making a small profit, greed can lead to adding more positions, resulting in heavy losses when a pullback occurs. Even worse, when a real opportunity arises, some are too afraid to act due to previous losses. There are also those who never set stop-losses, relying on luck to hold on, only to end up losing more and more.

If you look closely at those loss lists, you'll find that most of them are not due to incorrect analysis, but rather because the positions were completely out of control.

**A few life-saving position rules**

**The first bet should not exceed 30%**

If you have a capital of 100,000, you can invest a maximum of 30,000 the first time. If your direction is correct, you can gradually increase your investment. If you are wrong, there will still be a chance to turn things around. This is to leave yourself a way out.

**Build positions in batches, don't be attached to perfect entry points**

The market is something that cannot be precisely predicted. Entering the market in stages can average out costs, reduce psychological pressure significantly, and make execution much more composed.

**Stop loss is the game rule, not a suggestion**

Every trade must have a stop loss set. This is not giving up, but rather pricing every mistake. Protecting the principal is essential for the chance to play the next round.

**Capital is divided into three sections: long-term holding, swing trading, and flexible reserves**

Different types of money serve different purposes. The benefit of this approach is that the mindset remains orderly, and the goals of each part become clear.

**Leverage is like a knife; if not used properly, it will first hurt yourself.**

High leverage can magnify losses and limit your liquidity space, and in severe cases, it can lead to liquidation. Beginners should stay away from leverage, and even experienced individuals need to carefully control the multiples.

**The market determines how much you can earn, while position management determines how long you can survive**

As long as the position is stable, the mindset won't explode. Once the mindset is stable, real opportunities to make money will naturally come.