Opening positions should be matched with risk-controlled trading. You must learn this.
Many people ask me: "Brother Yao, how should I allocate my position, and how do I control risk?"
Honestly, this is a lesson every retail trader has to learn. If you can’t handle these two points, trading crypto is just playing with fire.
How to allocate your position?
Don’t put all your eggs in one basket.
At the beginning, don’t allocate more than 30%. Keep the remaining 70% aside, and add to your position only after you confirm the market.
When you have more experience and a larger account, you can increase it to 50% or even higher, but never go all-in or heavily overexpose your account.
How to control risk?
Stop-loss is your insurance. Set your stop-loss level before every trade.
If your losses exceed the pre-set limit, exit immediately—don’t hesitate.
People who don’t like stop-losses have already been beaten up by this market move.
In simple terms, position management is the "steering wheel," and stop-loss is the "seatbelt."
Control both of them, and you won’t be afraid of sharp rallies or sudden crashes—you can stand firm in the crypto world.
Remember: don’t be greedy, don’t be afraid. Before you act, think through every step.
In this market, it’s very hard to go far relying on just one person.
Now, I’ve got a repaired path here—will you take it or not?
Many people ask me: "Brother Yao, how should I allocate my position, and how do I control risk?"
Honestly, this is a lesson every retail trader has to learn. If you can’t handle these two points, trading crypto is just playing with fire.
How to allocate your position?
Don’t put all your eggs in one basket.
At the beginning, don’t allocate more than 30%. Keep the remaining 70% aside, and add to your position only after you confirm the market.
When you have more experience and a larger account, you can increase it to 50% or even higher, but never go all-in or heavily overexpose your account.
How to control risk?
Stop-loss is your insurance. Set your stop-loss level before every trade.
If your losses exceed the pre-set limit, exit immediately—don’t hesitate.
People who don’t like stop-losses have already been beaten up by this market move.
In simple terms, position management is the "steering wheel," and stop-loss is the "seatbelt."
Control both of them, and you won’t be afraid of sharp rallies or sudden crashes—you can stand firm in the crypto world.
Remember: don’t be greedy, don’t be afraid. Before you act, think through every step.
In this market, it’s very hard to go far relying on just one person.
Now, I’ve got a repaired path here—will you take it or not?
