To survive long in this market, position management is the true lifeline. It is more important than any candlestick pattern or technical indicator.

Most people have a shallow understanding of position sizing—they think it’s just about deciding how much to invest. In fact, it’s much more than that. The deeper logic of position management, simply put, is about managing your human nature. When you are fully leveraged and get hit, the panic can make you lose your mind and mess up your operations. Conversely, if you only hold a 10% position, the same decline won’t pose a real threat, and your mindset remains stable. When your mindset is stable, your judgment can be clear.

Some may say this is only necessary for large funds. Actually, the opposite is true—small funds need effective position management even more. With limited capital, a single out-of-control move could wipe you out completely, leaving no chance to recover. From this perspective, position management is fundamentally risk management, and more importantly, psychological management. No chart analysis can replace its role. Position size is your strategic framework; technical analysis is just a means of execution.

While maintaining good position control, you also need to find ways to filter out market noise and avoid being driven by rumors and anxiety. Use data tools effectively to observe trends, organize information, and execute trades, keeping yourself calm. The role of tools is to help you make decisions, not to create more anxiety. That’s the right attitude to have.