Many people ask me: If your market judgment is accurate, why do you still lose money?

My answer is simple — because you don't know how to manage your positions.

This is the biggest pitfall in trading.

In the crypto market, 90% of liquidations are not caused by sudden market changes, but by chaotic trading rhythms. Impulsively closing positions on small gains, panicking and adding to positions on small dips, or increasing leverage during rebounds... The more chaotic the rhythm, the faster the losses. The more you want to turn the tide, the easier it is to fall into the trap.

Those who can survive in this market for a long time rely not on talent or courage, but on a proven risk management system. In simple terms, it’s a core logic: prioritize the safety of the principal, and only then can profits expand.

Today, I will break down this practical position management system—

**Stage 1: Light positions for trial and error, minimal cost**

Suppose you have a 10,000 USDT limit and are bearish on a certain coin.

Don’t go all-in with passion; instead, start with a 5% position to test the waters. Use moderate leverage and set clear stop-loss levels. The goal is straightforward: verify if the market direction is correct. Minimizing losses is a win.

**Stage 2: Roll over profits, keep the principal untouched**

Once the trial position shows floating profits, start rolling over: after earning 50%, take half of the profit to add to the initial position, and if a breakout occurs, use the remaining profit to add a second position.

What’s the key? Only use floating profits to add positions, never touch the principal. Even if the market suddenly reverses, at worst, you just give back the profits — your "lifeline" — the initial principal, remains intact. This is the fundamental logic of rolling over positions.

**Stage 3: When the trend is established, lock in a safety cushion for the final stage**

When floating profits exceed the principal, immediately hedge to protect the underlying position. Then, at the end of the trend, place a light "tail order" to capture the last wave of accelerated gains.

Once you follow this process, you'll understand: no need for precise market predictions in a trending market; just hold onto the trend tightly. The biggest test is whether you can detach from emotions during those few minutes.

As long as you’re stuck in the cycle of blindly adding to positions and indiscriminately closing or opening, you’ll never seize the real big opportunities.

Recognizing the right direction is never difficult; the challenge is to eat the profits bite by bite until the very end.