After spending 200,000 on tuition, I finally understand what true position management means.

I used to be a reckless all-in person, but what was the result? Three fatal flaws: losing my composure when the market crashes, lacking cash reserves to have a say, and missing the chance to turn things around after one mistake. The market loves to take advantage of those who are overly confident that "I will definitely make money."

Later, I developed a three-layer position management method, now sharing it with everyone:

**Foundation Layer (40%-50%)**
Bitcoin and Ethereum, dollar-cost averaging strategy, at least 3 years. This is the ballast, buy more when prices fall, no fuss.

**Mobility Layer (30%-40%)**
Bitcoin, Ethereum, plus 1-2 mainstream coins, for swing trading. This layer tests your skills the most; keep single-loss within 10% of this layer.

**Cash Layer (20%-30%)**
USDT or fiat currency, for two purposes: emergencies and capturing extreme opportunities. Always keep the option open; this is your psychological bottom line.

**Three essential formulas to follow:**

Single trade stop-loss ≤ 2% of total funds — force yourself to always bet small.

Buy in at least three batches (ratio 3:4:3) — avoid missing out or buying at high prices.

Gradually raise stop-loss after profits — prioritize not losing money first, then let profits run.

**How to respond to four market conditions:**
In a bull market, stay calm, follow the trend, and gradually take profits.
In a bear market, stay patient, add to your foundation layer with dollar-cost averaging.
In a volatile market, avoid unnecessary fuss, watch more, act less.
In extreme crashes, the cash layer is prepared for this moment.

Take action now: redistribute according to 5:3:2, put the rules in a visible place, and execute like a robot for three months. You will find that position management is never an option but a vital skill for survival.