Recently, while chatting about investments in the community, I found that many beginners make the same mistake: once they see a good price, they go all in and buy everything at once. I used to do the same thing, and the result was that once I made a wrong judgment, the entire plan was ruined. Only later did I realize that what seems like a simple task—building a position—actually has a lot of nuances.

Building a position in batches is the way to go. Rather than putting all your funds in at once, it’s better to enter the market in several rounds. What are the benefits of doing this? First, it helps you avoid those fake signals—“short trap” and “long trap.” By entering in stages, you naturally steer clear of them. Second, building in batches helps you accumulate at lower levels, gradually average down your cost, and at the same time capture more opportunities. Most importantly, this approach lets you manage risk while also ensuring returns.

As for specific position-building methods, I’ve come across three that are more practical. The first is the index-based accumulation method. Put simply, the lower the price drops, the more you buy; the higher the price rises, the less you buy. For example, divide your funds into 10 parts. During a pullback, you can buy 1 part first, then 2 parts, and finally 4 parts, increasing in an index-like progression. This method carries relatively higher risk and requires caution.

The second is the pyramid accumulation method. The principle is similar, but the rhythm is different. It follows a rule of an arithmetic decrease when chasing a rally—for instance, it may be 30%, 20%, and 10% as the price moves up, and when the market pulls back, it does the opposite. This method is especially suited for capturing hot themes and is quite useful for people who want to catch the momentum.

The third is the equal division method, which is the one I recommend the most. Divide your funds evenly, and when the outlook is good, enter in stages. When you see an opportunity to add, you also add in stages. This method is more moderate and particularly suitable for risk-neutral or conservative investors. In choppy, sideways-moving markets, it works well for buying low and selling high.

But no matter which position-building method you use, there are a few points you must keep a close watch on. The stop-loss point is your line of defense: once your losses exceed what you can tolerate, you must cut your losses—this is especially important in a bear market. The take-profit point is your umbrella: it prevents greed from ruining the whole situation. Also, the historical lows and the cost points are key reference coordinates. During the position-building process, you need to keep these four points firmly in mind.

To be honest, position-building “technique” really boils down to patience and discipline. Beginners often rush to make quick money, but a steady, disciplined position-building strategy is what long-term winners choose. After spending so long in the crypto space, the biggest takeaway isn’t the profit from any single trade—it’s learning how to build positions scientifically and how to manage risk. These experiences are more valuable than anything else.