2026-01-02 11:23:48

Recently, some traders have decided to close their positions. Speaking of which, their recent trades have been quite smooth, but they want to emphasize an important point: position management really cannot be taken lightly.

The current market situation is actually a diamond pattern, where opportunities and traps coexist. Newcomers, instead of rushing to open positions, should focus on learning and observing. Watch the market’s temperament and understand your own trading style; there are no shortcuts in this process.

For those with some trading experience, it’s enough to operate based on your own certainty. But regardless of the stage you are at, the most common cause of losses is not incorrect judgment, but emotional trading—chasing highs and selling lows impulsively. Once caught in an emotional cycle, even if your judgment is correct, your execution can become distorted.

Therefore, here are a few core recommendations: control your individual position size, don’t let a single margin call ruin your entire account; stay away from emotional trading, and every trade must be supported by logic; remember that protecting your principal is always the top priority. These may sound basic, but in reality, few people truly follow them.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

9 Likes

Reward
9
4
Repost
Share

Comment

0/400

TokenDustCollector

· 3h ago

Good position management, I didn't stick to it this time. I almost lost everything with a full gamble.

View OriginalReply0

DAOTruant

· 3h ago

It's the same old story, saying it nicely, but few people actually stick to it. I am a living example myself; I suffered huge losses last year from chasing highs and selling lows.

View OriginalReply0

BearWhisperGod

· 3h ago

That's right, the biggest fear is emotional trading, where one chase gains and loses everything. Position management is indeed a life-and-death issue; I've seen too many people go all-in and then have their accounts wiped out. Newcomers really shouldn't rush; observing the market for half a year to a year is much cheaper than the lessons learned from blindly opening positions and bleeding. Yeah, the most heartbreaking situation is when your judgment is correct but your execution can't keep up, which is like watching everything go to waste. Capital preservation is the key; this phrase seems simple but is really hard to achieve. Even though it's been said, some still want to rush in. See you in the next market cycle. Controlling each trade well can really help you survive longer; this is a lesson learned from experience.

View OriginalReply0

GasFeeNightmare

· 4h ago

Close your position when you need to, have some self-awareness. Don't insist on waiting for that last bit of gain, because often that greed will cause a sudden explosion. Emotions, you know, really have a much greater destructive power than technical analysis. I've seen too many trades that people thought were right get wiped out by a small mistake. Position management, in simple terms, is about surviving longer. I don't want that rush of going all-in, only to end up with an account wiped out again. Diamond game? I think it's almost the same with landmines everywhere. Beginners rushing to open positions are just sending themselves a gift from the God of Wealth. The phrase "execution transforms" really hits home. Even a good plan can be ruined with a shaky hand.

View OriginalReply0