Position management is what truly determines whether you can survive in the long run.
Many people understand position control as just 'how much money I invested'.
But that's only the surface.
The essence of position management is managing emotions.
Just think about it:
When your position is fully loaded and you face a large bearish candlestick, even approaching a limit down,
can you still remain calm at that moment?
Most people are not analyzing; they are ignited by the emotions stirred up by the market.
Once emotions surge, judgment becomes distorted.
What often follows is: random position increases, random stop losses, and making more and more mistakes.
But what if it's just a 10% position?
To be honest, it's really not a big deal.
The position isn't high, the logic isn't broken; you can hold on to it;
Even if you stop loss, the loss is completely within an acceptable range.
If emotions don't collapse, the mindset remains stable.
Emotions → Mindset → Response → Result
This is a complete transmission chain.
Those who truly know how to manage positions have a very slow pace.
I have a habit:
I only make important decisions after 2:30 PM.
The strengths and weaknesses of the day are basically clear by this time.
90% of the mistakes in the market come from one word—snatch.
Snatching in, snatching out, snatching the opportunity to prove oneself.
Slowing down actually leads to fewer mistakes.
Slow is, in fact, fast.
Once you understand position management properly and execute it well,
you will quickly feel the changes:
Your trading mindset will be noticeably more stable, and operations will no longer be distorted.
Don’t think that only large funds need position management.
On the contrary, small funds need it even more.
Position management is essentially risk management,
and also mindset management.
No technology can replace it.
Positions are strategic,
while techniques are merely tactical.
I have been in the market for ten years; these are all personal experiences,
not just grand theories.
Only by truly understanding position management can you be considered to have stepped into the door of trading.
