2026-01-02 18:22:57

There's an old saying in the crypto market: it's not scary to get the market direction wrong, but the worst thing is not managing your positions well. Truly long-lasting traders are often not those with the most accurate vision, but those who understand how to manage their chips.

Have you ever experienced this—correctly judging the trend, only to be knocked out by a wave of pullback; or finally choosing a good coin, only to sell it in a hurry after a small rise, and then watch it go up without you? Ultimately, most of these losses are not due to picking the wrong target, but because all your chips were put in one basket. Dreams of getting rich quickly are shattered time and again, and your account becomes increasingly quiet.

I've seen many such cases. During the 2017 bull market, a trader used leverage to multiply his Bitcoin holdings tenfold, thinking he was about to get rich. But a sudden crash without timely stop-loss wiped out all his gains and returned them to the market. The crypto world is never short of people who can see the market clearly; what’s lacking are those who can survive until the end of the bull run.

**Why can’t you hold onto your positions?**

The fundamental reason is quite straightforward: the size of your position determines your mindset, and your mindset influences every step you take.

When you bet your entire wealth on a single trade, every price movement causes psychological impact. A slight fluctuation in the market can make you restless and eager to exit. This is not cowardice; it’s human instinct.

There is a classic asset allocation approach worth referencing. It roughly looks like this:

**Core reserves** (over 60%): stored in cold wallets, with withdrawal barriers set up, naturally avoiding impulsive actions;

**Stable cash flow portion** (20-30%): generates regular income, providing a psychological sense of gain;

**Active trading portion** (a small amount): used for daily operations and experimentation, with profits immediately transferred out;

**Living expenses**: planned at 4% of annual expenditure, ensuring daily needs are met.

The beauty of this system is that no matter how volatile the market, your mindset can remain relatively stable. The main assets are locked away, preventing short-term fluctuations from influencing you; the smaller, tradable portion still has room to participate in market opportunities without risking serious harm.

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RunWhenCut

· 6h ago

Really, I've done this kind of all-in before. During a wave of pullback, I got wiped out instantly, and the feeling was incredible... Now I still play it safe by splitting my positions, at least my mindset is much better.

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FlashLoanLarry

· 6h ago

That's so true, position management is really a lifesaver. I used to be a fool who went all-in with my entire position, and I got wiped out in a single wave of decline. Thinking back, I still feel heartbroken. --- The cold wallet setup is indeed perfect; treating 60% as if it doesn't exist instantly stabilizes my mindset. --- That's why I only trade with one-tenth of my funds now and keep the rest stored away. A painful lesson, brother. --- Listening to the story of that guy in 2017 gives me goosebumps—tenfold profits, and he just gave it all back to the market. Leverage really is a devil. --- If you’re right about the market, how can you still lose money? It’s because of going all-in. That hit right at my core. --- Most people lose money because they’re greedy—they must go all-in to feel happy, right? --- As for core reserves, I keep them in a cold wallet; I’ve almost forgotten the password. This actually improves my sleep quality a lot. --- Most people who watch K-line charts every day won’t survive a bull market cycle. That’s not wrong. --- Position management > coin selection > timing; I now understand this priority.

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FUDwatcher

· 6h ago

You're absolutely right. I'm the kind of person who always goes all in, and then gets wiped out every time. That's when I finally understand what it means that only by staying alive can you make money. --- After the thrill of going all-in on a trade, comes the despair of an empty account. Truly, the lessons are bloodily clear. --- I've heard the story of that guy in 2017. Leveraged ten times, and it was all gone in an instant. That left a psychological shadow. --- Cold wallets are a perfect move. Tying your own hands is actually self-rescue; just worried about not having enough willpower. --- Locking 60% of core assets is really rational this time. The remaining liquid funds should be played well, without hurting the principal. --- Don’t tell me to watch the market carefully. So what if I do? In the end, it all comes down to mindset and position. --- Every time I think this time will be different, but when volatility hits, I still can't sit still. Having a large position is truly suicidal.

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FlatTax

· 6h ago

You are absolutely right, full position is a dead end. I'm the kind of person who goes all in in one shot, and as a result, I almost lost everything in 2021. I'm still recovering from that. --- Now I finally understand what it means that being alive is more important than making money. Position management is truly the first lesson. --- Damn, that's why I always get trapped... Looks like I need to redistribute my account. --- Leveraging ten times and then going all in to zero is something I've seen too often. Mindset is indeed harder to control than choosing coins. --- This move of keeping 60% in cold wallets is brilliant; otherwise, I wouldn't even know how I survived. --- The crypto world is really a big wave washing out the sand. Those who survive until the end are not because they have the sharpest vision, but because they have a steady mindset. --- So the key is self-discipline? But who can really stay unmoved by price increases, haha. --- Right now, I am all in on a single coin. After reading this, I am a bit panicked. --- It's true, but executing it is really difficult. Human nature is greed.

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