Many traders tend to fall into a vicious cycle in the face of market volatility—once they hesitate, they start adding to their positions. The result? Increasing panic, and ultimately losing complete control of their emotions.

People who make real money think differently. They understand a fundamental principle: when certainty is lacking, reducing your position is actually the safest choice.

Why? Holding a large position is like a sword hanging over your head; every price fluctuation can trigger anxiety within you. You keep watching the market, constantly guessing, and eventually get emotionally hijacked. On the other hand, a smaller position gives you ample psychological space. You can calmly observe the market, analyze the true logic of the situation, rather than being scared and helpless due to short-term fluctuations.

What are the benefits of doing this? When the market is in a confusing phase, you can maintain your rhythm without losing control. And when real opportunities arise—those critical moments worth going all in—you will have already prepared and can strike with no hesitation.

Trading has never been a speed contest. Reducing your position is the smartest strategy.