There are three phrases that keep running through my mind when I trade: learn to wait, dare to act, strictly cut losses. It sounds simple, but very few people actually do it.

Over the years, I’ve interacted with many traders, whether beginners or veterans. The reasons for losing money are countless, but they all point to the same issue—poor sense of rhythm. Do you know? Those who stare at K-line charts all day and trade frequently actually see their account balances decrease over time. It’s truly ironic.

You don’t need a genius-level brain or the ability to read the market makers’ minds. If you can listen, do what you’re supposed to do, and execute thoroughly, you can outperform most people in the market. The key is understanding how to grasp this rhythm.

**Level One: Building Positions in Batches**

Many people turn building a position into gambling. They go all-in at the first sign of a trend, and their confidence shatters with the slightest price fluctuation.

Batch building positions is the only way to deal with market uncertainty. Suppose you have 10,000 USDT and plan to invest in Bitcoin. Don’t put it all in at once. Divide it into five parts, each 2,000 USDT. Buy 2,000 USDT worth of Bitcoin at $50,000, then add another 2,000 USDT when the price drops to $45,000. This way, your average cost drops to $47,500. It’s much better than investing everything at $50,000 in one go.

My own habit is: after identifying the main trend, I start with a small position to test the waters. Once I confirm the direction is correct, I gradually add more. It’s like testing the water temperature with your toes before jumping in. This approach may not make you rich overnight, but it ensures you survive longer in the market.

**Level Two: Have a Bottom Line for Position Size**

Position management, simply put, is the trader’s lifeline. Many people end up losing everything because they simply don’t manage their position sizes properly.