Position management, to put it simply, is a shield for your mindset. Many people understand it as a simple math problem—how much to invest and how to divide it. But in reality, it's far more complex; it directly influences whether you can stay rational in trading.

Let's look at a realistic scenario: going all-in and then hitting a limit-down. At this moment, the anxiety in your heart instantly explodes, and all your analysis logic and trading discipline vanish into thin air. When your emotions take over, losses start to snowball. I've seen too many people play it this way and end up with nothing.

On the other hand, what if you only commit ten percent of your position? The same decline becomes just a normal fluctuation for you. You can sit down calmly and ask yourself: Are my previous judgments still valid? You won't feel distressed when stopping out because it was already part of your risk plan. When your mindset is stable, your thinking naturally becomes clearer.

The chain behind this is quite straightforward: Emotion → Mindset → Decision → Result. To break this bad chain, the most effective way is to control your emotions from the source—your position size.

My personal habit is to be patient. For important entry decisions, I generally avoid making them in the morning. I prefer to wait until after 2:30 PM, when the morning noise has mostly dissipated and the true daily trend has emerged. By avoiding the most emotional periods, half of the pitfalls are automatically avoided.

Ultimately, most market mistakes stem from one word: greed—greed to buy in and greed to sell out. But trading itself is paradoxically more prone to collapse when rushing. Slowing down the rhythm allows you to see the real pulse, and a clear pulse is the true map to making money.

Especially for traders with limited capital, the importance of position management even surpasses candlestick patterns and indicator analysis. It’s like your safety latch, ensuring you won't be eliminated from the market due to one or two wrong judgments. You can see technical analysis as tactical tools, but position management? That’s your survival strategy.

Once you truly understand this, your trading rhythm and emotional stability can elevate to a new level. It’s not some profound theory; it’s simply the most straightforward lesson the market has taught us with real money over the years.