Position management is a critically important survival skill in the field of digital money investment that is often severely overlooked. Even if you choose mainstream tokens like Bitcoin or Ethereum, without a reasonable position control strategy, market fluctuations are likely to result in total loss.

Position allocation is actually related to the survival of investors. When fully invested, the profits from price increases can be unsettling, and it’s hard to let go during downturns; on the other hand, being completely out of the market turns investors into spectators, causing them to miss favorable opportunities. Only by maintaining a reasonable position can one ensure having both investment ammunition and operational space, while also keeping a good mindset.

Experienced investors generally adopt three practical strategies:
1. Batch Positioning Method: Buy gradually, add small positions when prices drop, avoiding putting all funds in at once.
2. Tiered Profit Taking Method: Gradually reduce positions as prices rise, prioritizing the recovery of the principal before considering profits.
3. Diversification Principle: Do not concentrate on a single coin, but also do not over-diversify, keeping it between 3-5 assets.

Three dangerous position management models to be wary of:
• Unlimited Positioning: Continuously adding positions while prices are falling, ultimately exhausting funds.
• Full Position Investment: Operating based on news and luck, with extremely high risk.
• Rejection of Stop Loss: Continuously absorb losses and eventually the account collapses

Position strategies for different market environments:
• Bull market adopts pyramid position increase model: increase position in the direction of the trend, adding holdings as prices rise.
• In a bear market, use the funnel-style averaging down method: reduce the average position cost in batches.
• Implement dynamic balance in a fluctuating market: flexibly adjust spot and contract positions.

In summary, market trends determine the upper limit of returns, but position management determines whether investors can survive in the market in the long term. Good position management skills will be the true passport for investors to succeed in the next bull market.