Where is the most frightening part of losses? It's often not about misjudging the market, but rather that your position has already spiraled out of control without you noticing.

There’s a saying circulating in the market: beginners dare to enter the market, veterans will exit; true market players understand the importance of long-term holding. But what truly separates the good from the bad is never just the skill of holding or not holding. The key lies in—whether you have mastered the ability of position management.

To put it plainly, position management is the bottom line for surviving in trading. It’s not some secret or trick; it’s simply a red line you must never cross.

Ask yourself, have you really thought about these before placing an order?

How much capital will this position consume? Will I go all in at once, or build my position gradually? At what price must I set a stop-loss? Is there still room in my account to withstand market fluctuations?

Many times, your problem starts at the beginning. If you don’t think it through initially, subsequent losses won’t wipe you out all at once, but will slowly eat away at your account like boiling a frog in warm water.

You’ve probably experienced this scenario: going all-in with a full position, getting caught on a small fluctuation; seeing a little floating profit and unable to resist adding more, only for the market to retrace and cause heavy losses; a real opportunity appears right in front of you, but due to previous losses, you feel uncertain, can’t hold the position, and end up being liquidated.

The core issue isn’t your judgment, the real root cause is your position.

To avoid these traps, it’s enough to stick to a few hard rules.

**Build positions in stages**—don’t expect to go all-in at once. First explore the market, then gradually increase your position. **Enter and exit in segments**—perfect timing is a fantasy; the market never waits for anyone. **Set a stop-loss**—orders without stop-loss are essentially gambling. **Layer your funds**—long-term, mid-term, and short-term strategies each have their own path. **Use leverage moderately**—it can amplify gains but cannot fix the flaws in your position management.

Market trends determine how high your ceiling can be; your position size determines how long you can survive in this market. Keep your position under control, and your mindset will be stable; with a stable mindset, your funds will have a way out.

True experts are not the ones who make the fastest profits, but those who survive the longest in this market. When your position management is in place, only then are you qualified to talk about long-term profitability.