Five Questions Before Opening a Position
Cultural Note: The original Chinese title is 开仓前的五个问题 (Kāicāng qián de wǔ gè wèn tí). These five questions form a mandatory checklist — missing any one means no trade.
Ask these five questions before every trade. Not “recommended” — mandatory. Missing one = no position.
Q1: Why Open?
Correct answers have only one format: “Because X, therefore Y.” X is your logic, Y is your action.
Correct: “Because BTC formed a double bottom at 78K, neckline breakout confirmed at 81K, I go long targeting 85K.”
Wrong: “Feels like it’ll go up” / “Others are buying” / “Dropped so much, should bounce” / “Don’t want to miss” / “Lost money, want to make it back.”
Q2: How Much?
Formula: Position = (Total Capital × Max Loss %) ÷ (Entry - Stop)
Example: 10,000 USDT capital, max loss 2% = 200 USDT, entry 40,000, stop 39,200 (distance 800). Position = 200 ÷ 800 = 0.25 BTC.
这个计算每次开仓前都要做。不是”大概多少”，是精确到小数点后两位。 “This calculation must be done every time. Not ‘approximately’ — precise to two decimal places.”
Q3: What If I’m Wrong?
Exact stop price. Not “around that area.” BTC 39,200.0. ETH 3,050.0. SOL 145.5.
Fuzzy stop = stop that won’t execute. Precise stop = no hesitation space.
Q4: What If I’m Right?
Three exit options (choose before opening):
- Fixed target — simple, strong execution
- Trailing stop — lets profits run, protects gains (but vulnerable to sweeps)
- Partial exit — 50% at first target, 30% at second, remainder with trailing stop
Which method doesn’t matter — choosing before opening matters.
Q5: Worst Case?
Total loss if stop-loss hits, as percentage of total capital:
- 1-2% → can open
- 3-5% → consider reducing position
-
5% → don’t open
2%不是随便定的数字。它是让你在连亏10次之后还能理性交易的边界。 “2% isn’t an arbitrary number. It’s the boundary that lets you trade rationally even after 10 consecutive losses.”
The Five-Question Checklist
□ Why? (Logic)
□ How much? (Position = Capital × 2% ÷ Stop distance)
□ What if wrong? (Stop price)
□ What if right? (Exit plan)
□ Worst case? (Loss ≤ 2%)
All five checked → open. Missing any → no trade.
不是”建议不开”，是”不允许开”。 “Not ‘recommended not to open’ — ‘not allowed to open.’”
Texture Check:
- Last trade: how many of the five questions did you answer?
- Is your position calculated or guessed?
- Set a number: how many consecutive 2% losses can you tolerate?
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