In the past few years in the crypto world, I have come into contact with all kinds of traders. Some accurately grasp market directions but can never make money; others have average judgment of the trend but their accounts are steadily growing. It was only later that I realized, this is not a matter of luck, but a fundamental difference in understanding of position management.

I used to be the kind of trader who would go all-in at the first sign of a trend and blindly add to positions when prices fell. After exhausting my funds through this approach, I was forced out by a long lower shadow wick, and during that period, even drinking water felt bitter. Every sleepless night, I asked myself: Am I simply not suited for this market?

The turning point came from a sentence from an experienced trader. He said: "You’re not bad at trading, you just haven’t learned how to let profits generate more profits." This statement struck me like lightning. I realized that my problem was not about trend judgment, but entirely about mastering risk management logic.

Regarding "adding positions," many people interpret it as chasing floating profits. In reality, it’s the complete opposite. The correct pace of adding positions should be: only add when the market is favorable, and protect your principal when the market is unfavorable. Establish a solid core position, keep flexible floating positions. Let market fluctuations work for you; when the trend unfolds, profits naturally grow. Your only task is to set proper take-profit and stop-loss at key points.

The first time I applied this logic in practice was during a deep correction. I entered with a tentative position, took small losses without touching the principal, and instead used the previous profits to add more. When the price broke through again, I added another position. When the trend truly unfolded, this single trade wiped out all the losses from the past two weeks.

That moment is hard to describe in words — making money can be so calm, not gambling your life, but following the market rhythm.

Looking back now, the core logic of position scaling is actually very simple: within a controllable risk range, use profits to seek greater returns. It sounds like the art of compound interest, but in reality, it’s about transforming trading from "all-in" to "segmental deployment." Some people lose everything after a single misjudgment, but those who understand this logic can survive longer even if they make mistakes, and when opportunities come, they can turn the tide in one decisive move.

If finding the right trend is like finding a good track, then position management determines how far you can run. Many give up at the first step, unaware that the real competition is in the second step.