Crypto enthusiasts are everywhere because a few hundred dollars' rise or fall can keep you awake at night. Making a profit makes you ecstatic, losing money causes anxiety to explode, and your entire mindset gets tossed around by the market. I’ve been through it too, and only later did I realize a key principle—true trading experts focus on controlling the situation, and the first step to control is starting with position management.

I have a novice under my wing who started with $1,200, and now his account holds $51,000. Do you know if he ever loses sleep over a few hundred dollars' fluctuation? The secret is simple—position control skills. He divides his funds into three parts, each with its own purpose, and every trade’s risk is tightly locked in. When the position is well-managed, the mindset naturally stabilizes. When the mindset is stable, you can make smarter decisions instead of acting like an idiot.

First rule: Never go all-in. If you go all-in and the market crashes, you have no buffer space. Small fluctuations can blow your mind, and in the end, you’ll only make a bunch of bad moves. This guy’s $1,200 account, the maximum he risks on a single trade is $400. What if that $400 is completely lost? His account still has another $800 to support him, so he’s not doomed.

Second rule: Position division must come with a supporting strategy. $400 is used for intraday trading, aiming for steady cash flow; another $400 is for swing trading, with a bigger appetite for higher profits; the remaining $400 is for life-saving purposes, specifically to handle sudden risks. With this allocation, he can earn steadily while keeping extreme risks outside, and his account grows within a controllable range.

Third rule: Lock in profits dynamically. This guy is pretty clever—once his floating profit exceeds 20% of his principal, he immediately takes 30% of it off the table to secure gains. Basically, it’s about adjusting positions—by withdrawing profits, he reduces the chips in his account, protecting the money he’s already earned.

Do you understand this logic? Many people fail because their mindset collapses, and the root of mindset collapse is poor position control. Position management isn’t about making less money; it’s about helping you earn more steadily and for longer.