Everyone should have heard of the rolling operation.
A simple explanation of rolling positions is: the bold will die of overeating, and the timid will die of starvation.
The art of rolling positions: In 2018, I know that in just one wave of market, two people became rich by using this art. It is true that they became rich in just one wave of market, but more people failed.
Here comes the chapter. As for rolling positions, many people who play futures like to talk about it casually without looking at the market. Whether to roll positions depends on their mood. . . The two better rolling opportunities in 2018 were EOS in April and the subsequent BCH rally.
If you fail to roll over once, you are done for. No matter how much you have earned before, if you fail once, you are done for. The key is that rolling over will put you in a disadvantageous position again and again.
The difficulty lies in the judgment of the big market. Enough of the nonsense, let me talk in detail about the use of the rolling warehouse method and the judgment.
Rolling literally means rolling your position continuously. For example, when EOS was $2, we judged that a big market was coming, and we thought EOS would reach 1,000 RMB!!!
Then I choose to open a long position at $2 for EOS. If I use 100 EOS and 20x leverage, then when EOS reaches $2.1, I already have 200 EOS, and I choose to close my position. Then I use 200 EOS to open a long position at $2.1. Then when EOS is around $2.205, I will have 400 EOS... It will continue like this~ No kidding, when EOS is not yet 1000, but EOS reaches 150, how much money do you have? It's scary, right? This is just assuming that the principal is only 100 EOS.
For ordinary futures, when EOS reaches $2.205, your EOS is about 300. This is a 100 EOS difference, and we just rolled over once. You know how high the compound interest is.
Of course, it comes with huge risks!! Suppose: We open long positions at 100 EOS at 2 USD and keep rolling positions. When EOS reaches 150 RMB per EOS!! We are already fantasizing about a better future. We hold countless EOS and choose to open long positions at 150 RMB again. After all, EOS will reach 1000 RMB per EOS in 18 years. Suddenly: the milk is gone~ the star halo disappears~ the waterfall falls. In the bull market, you have fantasies in your mind. If you are not careful, it will be cold and all the success will fall short.
Ordinary futures: At this time, it opens at 2 dollars. Even if it falls back, when it falls to 150, there is still a huge space and time to reflect and stop profit!!! And it is not small, just less than rolling position!
Rolling is like this. If you make a mistake once, you will be doomed. Of course, what if I judge the market correctly? This kind of market only appears in extreme market conditions, that is, the bull market, or the coin goes solo. Don't tell me, it keeps falling, and you open a short position to roll? I will say my point again. If it keeps falling, it is not a bear market for me, but a bull market! It's just a bull market that does not belong to leeks.
The coin goes solo ~ I witnessed it with my own eyes, a leek got rich in that BCH wave, he really didn't know anything, he just simply asked me about the rolling operation, anyway, it opened at a negative 40%, no matter, didn't look at it, in the end, just like that, rolling the position, from 50,000 RMB to nearly 3 million, it only took a week, which was the time when BCH took off.
Do you think he is good at judging the market? No, he doesn't know anything and doesn't look at the K-line. He just rolls his position without thinking. He rolls until he sees that there is more money and it is time to settle. He withdraws the money to spend, and then he closes the position. Do you think there will be people who can always judge the market correctly? Will there be no mistakes in the middle? I don't believe it. There will always be mistakes.
Therefore, friendly advice: If the market is good, use rolling positions sparingly, roll 2 or 3 times, and stop when you see the profit. If commodity futures are compared to the spot of digital currency, the risk is similar. Then the futures of digital currency are greater than the spot of digital currency! The risk of rolling futures is far greater than that of digital currency futures.
You should know: ordinary people think that stocks are high-risk, your rolling operation > digital currency futures > digital currency spot = commodity futures > stocks
