Position management, to put it simply, is not just a straightforward math problem of "how much to invest," but more like a set of emotional regulation systems. It determines whether you can stay calm and steady during market fluctuations or become panicked and chaotic.

The reality is often like this—

Going all-in, encountering a big downward gap, and your mindset collapses immediately. In a moment of impulsiveness, all trading discipline and risk plans are thrown aside, leading to a series of regretful actions. Many people's principal is thus evaporated.

Conversely, what if you only allocate 10% of your funds for a trial trade? When the same big downward move hits, your perspective is completely different—it's just a normal correction. Stop-loss when necessary, losses are within expectations, and your mindset remains stable. With a clear mind, your judgment naturally improves.

The logical chain here is very clear: **Emotion → Mindset → Decision → Result**. Therefore, the essence of position management is to control emotional fluctuations at the source.

Based on this understanding, my approach is "be a bit slower." For example, I rarely make major position-building decisions during the early trading session. I usually wait until after 2:30 PM—by then, the noise from the morning has mostly dissipated, and the true strength or weakness pattern of the day becomes clear. Avoiding the most emotionally volatile periods naturally helps you dodge many traps.

Most market losses come from one word: **Rush**. Rushing to buy in, rushing to sell out. But trading is precisely something that shouldn't be rushed. Slowing down the pace clarifies the picture; a clear rhythm is the real path to stable profits.

Especially for traders with limited capital, position management can even surpass technical analysis. It is your lifesaver—ensuring you don't get wiped out after just a few misjudgments. From another perspective, technical analysis is tactical, but position management is strategic.

Once you understand this, your trading stability and psychological resilience will truly improve to a new level. This is not some profound theory; it is the most straightforward survival wisdom that the market teaches us through real gains and losses.