How to roll positions:
In the cryptocurrency space, you need to find a way to earn 1 million in capital first, and the only way to earn 1 million from tens of thousands is:
That's called rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you don't use leverage and just hold cash, it will appreciate.
With 20%, you have 200,000, which is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to 100,000, you will also touch on some ideas and logic for making big money. At this time, your mindset will also calm down a lot, and from then on, it's just about copying and pasting.
Don’t always talk about millions or billions; start from your own actual situation. Blowing your own horn only makes you feel good. Trading requires the ability to identify the size of opportunities; you can't always trade small positions or always trade heavy positions. Usually, play with small positions and when big opportunities arise, then pull out the big guns.
For example, rolling positions can only be operated when big opportunities come. You can't keep rolling; missing out is okay because you only need to roll successfully three or four times in your lifetime to go from zero to tens of millions. Tens of millions are enough for an ordinary person to level up.
You will be among the wealthy.
Some points to note about rolling positions:
1. Enough patience; the profit from rolling positions is enormous. As long as you can roll successfully a few times, you can earn at least tens of millions or billions.
You cannot roll easily; you need to find high-certainty opportunities.
2. High certainty opportunities refer to sideways fluctuations after a sharp drop, followed by an upward breakout. At this time, the probability of following the trend is quite high.
Find the point of trend reversal and get in right from the start.
3. Only roll long positions;
▼ Rolling Position Risks
Let's talk about the rolling position strategy. Many people think this has risks, but I can tell you that the risk is very low, far lower than the logic of opening positions in futures.
If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit. If you are still losing, then don't look.
If you open a position in Bitcoin at 10,000 with a leverage of ten times and use the isolated margin mode, only opening a position of 10%, that is, just opening 5,000 as margin, this actually equals one-time leverage with a 2% stop-loss. If you hit the stop-loss, you only lose 2%. Just 2%? That's 1,000. How do those who get liquidated end up liquidated? Even if you get liquidated, you only lose 5,000, right? How can you lose it all?
If you are correct and Bitcoin rises to 11,000, you continue to use 10% of your total capital, while also setting a 2% stop-loss. If you hit the stop-loss, you still make an 8% profit. What about the risk? Isn't there a lot of risk involved? This can be applied similarly...
If Bitcoin rises to 15,000 and you successfully add positions, during this 50% market movement, you should be able to earn around 200,000. Grabbing two such opportunities would be about 1 million.
Compound interest does not exist at all; a hundred times is made from two times ten times, three times five times, and four times three times profit, not from compounding 10% or 20% daily or monthly; that is nonsense.
This content not only has operational logic but also contains the core essence of trading—the inner skills and position management. As long as you understand position management, you will never lose everything.
This is just an example; the general idea is like this, and the specific details need to be pondered more by yourself.
The concept of rolling positions itself has no risk; not only does it have no risk, but it's also one of the most correct thoughts for doing futures. The risk lies in leverage. You can roll with ten times leverage, or even one time. I generally use two or three times. Isn’t that the same as catching two opportunities for dozens of times returns? If not, you can use 0.x times leverage. What does this have to do with rolling positions? This is clearly your own choice about leverage. I have never said to use high leverage for operations.
Moreover, I always emphasize that in the cryptocurrency space, only invest one-fifth of your money, and only use one-tenth of your cash to play futures. At this time, the funds for futures only account for 2% of your total capital, while futures only use two or three times leverage, and only trade Bitcoin. This can be said to reduce risk to an extremely low level.
If you lose 20,000 from 1 million, will you feel distressed?
Always relying on leverage is meaningless. There are always people saying that rolling positions are risky, and that making money is just good luck. Saying this is not to convince you; there's no point in convincing others. I just hope that people with similar trading philosophies can play together.
It's just that there is currently no filtering mechanism; there will always be unpleasant voices disrupting the recognition of those who want to see.
▼ Capital Management
Trading is not filled with risks; risks can be mitigated through capital management. For example, my futures account has 200,000, and my cash account ranges from 300,000 to over 100,000. When opportunities are great, invest more; when there are no opportunities, invest less.
With good luck, you can earn over ten million RMB in a year, which is quite enough. With bad luck, the worst-case scenario is that your futures account gets liquidated. It doesn't matter; the profits from cash can compensate for the losses from futures liquidation. Once compensated, you can reinvest. Can you really not earn a single penny from cash in a year? I'm not that bad.
You can not make money but cannot lose money, so I have already experienced liquidation for a long time, and I often save a quarter or one-fifth of my profits separately. Even if I have a loss, a portion of the profits will still be retained.
As an ordinary person, my personal advice is to use one-tenth of your cash position to play futures. For example, if you have 300,000, use 30,000 to play. Once you expose it, use the profits from cash to reinvest. After you have had ten or eight losses, you will surely grasp some insights. If you still haven't figured it out, then don't play; it's not suitable for you.