Extreme Position Management Strategy: Turning Losses into Continuous Profits

In trading, many new investors often find themselves in a situation where their capital is nearly liquidated just after one wrong trade. The main reason is over-leveraging, lacking a capital management strategy, which leads to extremely high risks. However, with a scientific and extreme position management method, protecting capital, maximizing profits, and seizing market opportunities is entirely feasible.

1. Basic Principle: "30-70 Position" This strategy is based on the principle of flexible capital allocation: 30% experimental capital: Used to survey the market, check trends, and sensitivity to price fluctuations. 70% core capital: Used to place main orders, "ambush" profit opportunities based on the results from the 30% experimental capital. This allocation helps investors explore the market while still protecting most of their capital, limiting the risk of account liquidation.
2. The "Rolling Profit Law, Protecting Core Capital" An important principle in position management: When there is profit, do not rush to increase the order volume but let the profit roll into the next order. When making a mistake, only the profit from trial orders is lost, the core capital is not affected. This approach prevents heavy losses while creating opportunities for double growth through continuously reinvested profits.
3. Rhythm of "Order Roll" - No Greed, No Emotional Attachment Do not pursue failed orders for too long; when the market is favorable, take profits immediately and reinvest. This strategy helps investors maximize each wave of the market while avoiding being influenced by emotions, reducing the risk of significant losses.
4. Results and Evidence When applying this principle correctly: Investors can turn a small capital into continuous profits, distinctly different from those who overtrade leading to liquidation. Market fluctuations are no longer an absolute risk but become a profitable tool if position management is handled scientifically.
5. Important Note This strategy is not for the impatient or those who want to win big immediately. It requires: Strict discipline in capital allocation. Patience according to the "order roll" rhythm. Understand the stop-loss and take-profit points. In summary Managing extreme positions with the principle of "30-70", rolling profits, and the rhythm of order execution is a way for investors to protect capital, maximize profits, and take advantage of market volatility. Those who know how to apply this strategy will avoid the risk of rapid losses while also having the opportunity for sustainable double growth.