You have already learned the basics of position sizing, and now it's time to advance. True experts rely not on picking the right coins a few times, but on meticulous position management to survive longer and earn more steadily in the market.

**When Should You Reduce Your Position**

Many people ask, how long should you hold a position? Actually, it depends on three situations. First is when you're in profit—don't wait for the coin price to drop; instead, proactively take some profits. Second is when market risks clearly increase and overall sentiment begins to panic; reducing exposure in advance is often wise. The third situation is the easiest to overlook: when you no longer understand the market trend. Admitting uncertainty is itself a skill.

As for when to completely close a position, several strict conditions must be met. If your stop-loss point is triggered, you must execute—emotions are useless here. If your investment logic has completely reversed, or a black swan event occurs in the fundamentals, holding on is gambling. Also, when you discover a better opportunity, you should free up your funds. And when your portfolio needs a major adjustment, you should dare to clear positions and rebuild.

**Can Locking Positions Really Save You**

In the derivatives market, there's a common operation called locking positions—simultaneously taking long and short positions of equal size to freeze profits and losses. It seems satisfying, but it's actually quite useless. Why? It doesn't truly resolve the position; it just delays the decision, and trading fees and funding rates still eat into your profits. In most cases, instead of locking positions, it's better to simply cut losses directly.

**Three Practical Rules for Adding and Reducing Positions**

The pyramid addition method emphasizes that the lower the price, the larger the proportion you buy. This offers a clear cost advantage, but the premise is that you must accurately identify the bottom—something most people find too difficult. Conversely, the inverted pyramid reduction method involves selling more as the price rises, which can protect profits without missing out on big gains. The downside is that you might sell too much at the start of a bull market, which is a balancing act.

There's also an underrated principle—never go all-in. Keep 10% to 20% of cash to handle extreme market shocks and reserve ammunition for sudden opportunities. The benefit of this approach is that psychologically, you'll be much calmer and less likely to panic during short-term fluctuations.

**Position Size Should Match Your Mindset**

Here's the key: the position size that allows you to sleep peacefully at night is the right size for you. If your holdings cause anxiety, frequent checking, or even affect your daily life, your position is already too large. This isn't a psychological issue but a problem with your allocation.

**Master-Level Thinking**

Ordinary traders think about picking the right coin to make a one-time profit; experts think about managing their positions to keep earning consistently. The value of position management far exceeds the ability to pick coins. During a bull market, you can be aggressive, but you should dynamically adjust your overall position based on the market’s risk level; during a bear market, be more conservative and leave enough safety margin.

Finally, don't pursue perfect buy and sell points. Buying at the lowest and selling at the highest is a myth. What you should truly aim for is keeping your position within a comfortable zone, enabling you to stick to your strategy. Only then can you continue to profit through market cycles like BTC, ETH, and Solana. Good position management isn't about getting rich overnight; it's about not getting wiped out.