In the financial market, the key to making money lies in effective position management. When the market is in a clear uptrend, our focus should be on going with the trend, using a "small-to-large, step-by-step confirmation" approach to adding to our positions, rather than starting with a heavy investment.

1. Position Management in Uptrends

In an uptrend, prices gradually create new highs and quickly rebound after a pullback. In this scenario, it is advisable to initiate positions cautiously. Once prices break through critical levels and do not pull back, adding to our positions can effectively enhance our advantage based on existing profits. As prices rise, we should adopt a more conservative stance to avoid accumulating risk.

However, if a pronounced acceleration occurs or a key support level is breached, we must decisively reduce positions to secure existing profits, as the market will not continuously move in one direction.

2. Strategies for Making Money in Ranging Markets

In a ranging market, prices oscillate within a specific range, making it easy for investors to be swayed by market fluctuations. In this environment, it's wise to identify the support and resistance levels of the stock. When prices approach the lower boundary, consider small position buys but set stop-loss levels. Conversely, when nearing the upper boundary, be prepared to take profits and exit.

Making money in a range-bound market is about capitalizing on volatility, not trends. Therefore, positions should not be too heavy, and operations need to be decisive to enhance capital efficiency rather than chasing unrealistic doubling returns.

3. Risk Management in Downtrends

In a downtrend, prices progressively decline, making proper position management crucial. During this phase, one should set an acceptable loss threshold. Once breached, implement a reduction or stop-loss strategy; do not emotionally fight the market. If attempting short-term rebounds, maintain light positions with a clear price plan—exit if wrong.

Managing positions and adjusting them isn't just a matter of simple rules but requires a comprehensive understanding of market structures, risk tolerance, and capital status. Regularly assess your holdings by asking: Is this stock in an uptrend, ranging, or downtrend? Is my current position appropriate? Applying these principles in your trading account marks a significant step toward improved risk control and position management.