#数字资产动态追踪 **Turning small funds into big gains, more important than choosing the right coins is this**

I often see beginners ask: how to quickly identify buy and sell points? Actually, this is the wrong question. For small funds, the importance of position management far exceeds that of buy and sell timing; it directly determines whether you can survive.

**What exactly is trading about?**

In simple terms, five points:
- Capital preservation is the premise. Without principal, where does compound interest come from? Keeping the portfolio stable is necessary for long-term trading.
- Mindset determines operation. Fear or greed can distort your trading once they take over.
- Catching opportunities. The market offers opportunities every day; the key is whether you can seize them.
- Compound interest is the secret to wealth. To achieve compounding, you must strictly control drawdowns.
- Simple repetition. Long-term trading is about repeatedly copying a successful trading logic.

**How to allocate positions?**

Four common approaches—

**1) Equal division method**: Divide into four or five parts, quick calculation, suitable for beginners.

**2) Fixed risk method**: This is the industry standard. Set the maximum loss per trade at 2% of the principal, and then calculate position size accordingly. It sounds conservative, but small funds can't withstand large drawdowns.

**3) Pyramid method**: Suitable for gradually adding positions in trending markets, with controlled risk progression.

**4) Balance method**: Divide into three parts: base position, rolling position, and reserve funds. Never fully allocate all funds; always keep some ammunition. This is the way to survive the longest.

**The true trading logic**

Funds below 500,000 are considered small funds. The biggest mistake with small funds is diversification. It’s recommended to focus on just one, at most three coins. Why? Because the profit from each trade has little impact on the total funds, making trading meaningless. Small funds are about subtraction, not allocation—grab one or two high-probability opportunities, go all-in decisively, and that’s the way to turn things around.

Don’t forget, holding no position is also position management. When there are no opportunities or the market is uncertain, staying out can prevent unnecessary losses. Spend time every weekend reviewing each trade, including whether the position was right or wrong.

Another often overlooked point: good techniques must be paired with the right mindset to execute. And position size directly affects mindset—light positions keep you calm but earn less; heavy positions earn more but can cause emotional breakdowns. Finding this balance is what mature traders work on.

**Final words**

Position size represents risk, and position management is your lifeline. True trading veterans have long embedded position management into their very bones.