Why does your trading account always keep shrinking? Many people blame the market for going against them, but if you ask yourself honestly — the real culprit is actually the chaos in position management.

There is a saying in the market that is quite heart-wrenching: rookies only know how to enter the market, seasoned traders understand how to exit, but true traders are always in a long-term position waiting for opportunities. However, to bridge the gap between people, just knowing how to stay out of the market is not enough. The key lies in whether one can manage the position from the very beginning.

Position management boils down to four questions: How much money should be invested in this order? Should it be all in at once or in portions? At what position must one cut losses? Is there any backup capital? This is not some profound technique; to put it simply, it's the basic skill needed to survive in the market.

**Common loss traps, have you fallen into them all:**
Full position diving in, and as a result, a slight fluctuation gets you trapped; as soon as the price rises, you increase your position, and when the pullback comes, it directly injures your capital; when the real opportunity arises, you have no bullets left; what's worse is not setting a stop loss at all, relying solely on a strong belief to hold on.

Many times during a review, it is found that most people who lose money do not do so because they misread the direction, but rather because their Position is completely out of control.

**A few principles that change the game:**

When opening a position, don't reveal all your cards at once. Start by testing the waters with a fixed ratio to get a feel for the market's temperament. Try to operate in batches when entering and exiting trades; don't be obsessed with hitting that perfect entry point. Sometimes, entering just a little late can actually help you avoid a pitfall. You must set a stop-loss; trading without a stop-loss is just gambling, the only difference is the object of the gamble.

Funds should be used in a tiered manner: long-term positions, swing trading, and short-term trading should each follow their own paths and not mix together. As for leverage, it can indeed improve return efficiency, but never expect it to save you — it often accelerates your exit instead.

Ultimately, the market determines how much you can earn in this round, but the Position decides how far you can go. Once the Position stabilizes, your mindset naturally becomes stable; and only those who can truly maintain a stable mindset deserve to be called traders qualified for long-term profits.