Learn position sizing and risk control
A lot of people ask me, “Ying, how should I size my positions and manage risk?”
Honestly, these are skills every retail trader needs to learn. If you can’t get these two basics right, trading crypto is playing with fire.
How should you size your positions? Simply put, don’t put all your eggs in one basket. When you’re just starting out, don’t put more than 30% of your funds into positions. Leave the remaining 70% on the sidelines, and add to your positions only after you’ve confirmed the market’s direction. That way, if the market shifts, your losses won’t be too severe while you’re still gaining experience. As your account grows, you can increase your position size to 50% or more, but never go all-in or take an excessively large position.
Before every trade, ask yourself: Is this trade worth taking?
How do you manage risk?
That’s what stop-losses are for—they’re your insurance. Before every trade, set your stop-loss level.
If your loss exceeds the limit you set, exit immediately. Don’t hesitate. Keeping losses under control also makes it easier to keep your emotions in check.
If one trade loses too much, your whole account could be wiped out, so you must allocate your position size wisely.
Those who refuse to use stop-losses have already been taught a harsh lesson by this ETH rally. The person below, though, followed the advice: when support aligned and the trend changed, they stopped out immediately and reversed into a long position—and caught $ZEC .
Set a support level for every trade. If support breaks, close the position; don’t wait for resistance.
Put simply, this is like a “seat belt” for your crypto trades.
If you manage your position size and use stop-losses properly, you won’t be afraid of sharp drops or surges, and you can build a steady footing in the crypto market.
Remember: don’t be greedy or afraid. Think through every step before you trade.
Follow the market’s rhythm, take it slowly, and stay steady—that’s how you give yourself a chance to turn things around.
A lot of people ask me, “Ying, how should I size my positions and manage risk?”
Honestly, these are skills every retail trader needs to learn. If you can’t get these two basics right, trading crypto is playing with fire.
How should you size your positions? Simply put, don’t put all your eggs in one basket. When you’re just starting out, don’t put more than 30% of your funds into positions. Leave the remaining 70% on the sidelines, and add to your positions only after you’ve confirmed the market’s direction. That way, if the market shifts, your losses won’t be too severe while you’re still gaining experience. As your account grows, you can increase your position size to 50% or more, but never go all-in or take an excessively large position.
Before every trade, ask yourself: Is this trade worth taking?
How do you manage risk?
That’s what stop-losses are for—they’re your insurance. Before every trade, set your stop-loss level.
If your loss exceeds the limit you set, exit immediately. Don’t hesitate. Keeping losses under control also makes it easier to keep your emotions in check.
If one trade loses too much, your whole account could be wiped out, so you must allocate your position size wisely.
Those who refuse to use stop-losses have already been taught a harsh lesson by this ETH rally. The person below, though, followed the advice: when support aligned and the trend changed, they stopped out immediately and reversed into a long position—and caught $ZEC .
Set a support level for every trade. If support breaks, close the position; don’t wait for resistance.
Put simply, this is like a “seat belt” for your crypto trades.
If you manage your position size and use stop-losses properly, you won’t be afraid of sharp drops or surges, and you can build a steady footing in the crypto market.
Remember: don’t be greedy or afraid. Think through every step before you trade.
Follow the market’s rhythm, take it slowly, and stay steady—that’s how you give yourself a chance to turn things around.
