Judging the timing of rolling positions, rolling positions are not something you can do whenever you want; there needs to be a certain background and conditions for a higher chance of success. The following four situations are most suitable for rolling positions:
(1) Breakout after long-term consolidation: When the market has been in a consolidating state for a long time and volatility drops to a new low, once the market chooses a breakout direction, rolling positions may be considered.
(2) Buying the dip during a bull market: In a bull market, if the market experiences a significant drop after a round of substantial gains, consider using rolling positions to buy the dip.
(3) Weekly breakout: When the market breaks through significant resistance or support at the weekly level, consider using rolling positions to seize the breakout opportunity.
(4) Market sentiment and news events: When market sentiment is generally optimistic or pessimistic, and there are significant news events or policy changes that may affect the market, consider using rolling positions.
Only under the above four situations will the chances of rolling positions be higher; at other times, one should operate cautiously or abandon the opportunity. However, if the market seems suitable for rolling positions, it is still necessary to strictly control risks, set stop-loss points, and prevent potential losses.
2. Technical Analysis
After confirming that the market meets the conditions for rolling positions, the next step is technical analysis. First, confirm the trend using technical indicators to determine the direction, such as moving averages, MACD, RSI, etc. If possible, combine multiple technical indicators to confirm the trend direction, as it is always good to be well-prepared. Secondly, identify key support and resistance levels and assess the effectiveness of the breakout. Finally, use divergence signals to capture reversal opportunities. (Divergence signal: When a certain coin's price hits a new high, but MACD does not reach a new high, forming a top divergence, it indicates that the price will rebound, and one can reduce positions or go short; similarly, when the price hits a new low, but MACD does not reach a new low, forming a bottom divergence, it indicates that the price will rebound, and one can increase positions or go long.)
3. Position Management
Once this step is done, it’s time for position management. Reasonable position management includes three key steps: determining the initial position, setting rules for adding positions, and formulating strategies for reducing positions. Let me give an example to help everyone understand the specific operations for these three steps: Initial position: If my total capital is 1 million, then the initial position should not exceed 10%, which is 100,000.
Adding position rules: Be sure to wait until the price breaks through key resistance levels before adding positions; each addition should not exceed 50% of the original position, i.e., at most add another 50,000. Reducing position strategy: Gradually reduce positions when the price reaches the expected profit target; don't hesitate when it's time to let go. Each reduction should not exceed 30% of the existing position to gradually lock in profits.
As ordinary people, we should invest more when opportunities are abundant and less when opportunities are scarce. With good luck, we can earn a few million; with bad luck, we can only accept losses. However, I want to remind you that when you make money, you should withdraw your principal and only use the profits to play. You may not make a profit, but you must not lose money.
4. Adjusting positions
After completing position management, we come to the most critical step: how to achieve rolling positions through adjusting holdings. The operation steps are undoubtedly those few steps:
1. Choosing the timing: Enter the market when it meets the conditions for rolling positions.
2. Opening positions: Open positions based on technical analysis signals and choose suitable entry points.
3. Adding positions: Gradually increase your position as the market continues to move in a favorable direction.
4. Reducing positions: Gradually reduce positions when the predetermined profit target is reached or when the market shows a reversal signal.
5. Closing positions: When the profit target is reached or the market shows a clear reversal signal, close the position completely.
Here, I will share with you my specific operations for rolling positions:
(1) Floating profit position addition: When the invested asset appreciates, consider adding positions, but the premise is to ensure that the holding cost has been lowered to reduce the risk of loss. This does not mean adding positions every time there is a profit, but rather doing so at the right time, such as adding positions during a converging breakout trend, quickly reducing after the breakout, or adding during trend pullbacks.
(2) Base position + trading: Divide the assets into two parts, keeping one part unchanged as the base position, and using the other part for buying and selling during market price fluctuations to lower costs and increase returns. The proportions can refer to the following three types:
1. Half position rolling: Use half of the funds for long-term holding, while using the other half for buying and selling during price fluctuations.
2. 30% base position: Hold 30% of the funds long-term while using the remaining 70% for buying and selling during price fluctuations.
3. Seventy percent base position: Hold 70% of the capital long-term, while the remaining 30% is used for buying and selling during price fluctuations.
The purpose of this approach is to maintain a certain position while utilizing the market's short-term fluctuations to optimize the holding cost.
5. Risk Management
Risk management mainly consists of two parts: controlling the overall position and allocating funds. Ensure that the overall position does not exceed the risk tolerance, and allocate funds reasonably without investing all funds in a single operation. Of course, constant monitoring is required, closely following market dynamics and changes in technical indicators, flexibly adjusting according to market changes, and stopping losses or adjusting positions in a timely manner when necessary.
Many people feel both fearful and eager when they hear about rolling positions; they want to try but are afraid of the risks. In fact, the risk of the rolling position strategy itself is not high; the real risk comes from leverage. However, if used reasonably, the risk of leverage will not be too great.
For example, if I have a principal of 10,000, open a position when a certain coin is at 1,000, use 10 times leverage, and only use 10% of the total capital (i.e., 1,000) as margin, this is equivalent to 1 times leverage. Set a 2% stop loss; if triggered, I will only lose 2% of this 1,000, which is 200. Even if the liquidation condition is eventually triggered, you will only lose this 1,000, not all your funds. Those who face liquidation often do so because they used higher leverage or larger positions, causing them to trigger liquidation with just a slight market fluctuation. However, by following this method, even if the market is unfavorable, your losses will still be limited. So 20 times can roll, 30 times can roll, and 3 times can roll; even 0.5 times can be used. Any multiple of leverage can be used, but the key is to use it reasonably and control your position appropriately.
The above is the basic process of using rolling positions. Friends who want to learn can watch it several times and ponder it carefully. Of course, there may be different opinions, but I only share experiences, not to persuade others.
So how can small funds grow?
Here, we must mention the effect of compound interest. Imagine if you have a coin, and its value doubles every day; after a month, its value will become astonishingly high. The first day it doubles, the second day it doubles again, and so on, the final result will be astronomical. This is the power of compound interest. Although it starts with small capital, after a long time of continuous doubling, it can grow to millions.
For friends who currently want to enter the market with small capital, I suggest focusing on big goals. Many people believe that small funds should frequently engage in short-term trades to achieve quick appreciation, but actually, it is more suitable to aim for medium to long-term investments. Instead of earning small profits daily, one should focus on achieving several times the growth with each trade, with the unit being multiples, exponential growth.
When it comes to positions, one must first understand how to diversify risks and not concentrate all funds in a single trade. Funds can be divided into three to four parts, using only one part for each trade. For example, if you have 40,000, divide it into four parts and use 10,000 for trading. Secondly, use leverage moderately.
Leverage: I personally recommend not to use more than 10 times for major coins and not more than 4 times for altcoins. Additionally, dynamic adjustments are necessary; if you incur losses, supplement with equivalent funds, and if you make a profit, withdraw some appropriately. No matter what, you should avoid losses. Finally, you should add positions, but this should be done only when you are already in profit. When your capital grows to a certain extent, you can gradually increase the amount for each trade, but don't add too much at once; transition slowly. I believe that through reasonable position management and solid trading strategies, small funds can gradually achieve significant value, and the key lies in patience.
Wait for the right opportunity, focusing on the big goals of each trade rather than daily small profits. Of course, I have faced liquidation before, but I still had spot gains to offset my losses. I don't believe that you haven't made a single cent from your spot holdings. My futures only account for 2% of my total capital, no matter how much I lose, I won't lose it all, and my losses have always been within my controllable range. Finally, I hope each of us can accumulate wealth gradually and earn hundreds of thousands or millions.
Meeting is fate, and knowing each other is a bond. V God firmly believes that those who are destined will eventually meet, while those who are not will pass by due to fate. The journey of investment is long; temporary gains and losses are just the tip of the iceberg. Remember that even the wisest may have their oversights, and thoughtful consideration may yield unexpected gains. Regardless of emotions, time will not stop for you. Pick up the worries in your heart and stand up to move forward again.
I am V God, having gone through multiple bull and bear markets with rich market experience in various financial fields. Here, penetrate the fog of information to discover the real market. Capture more opportunities for wealth and discover truly valuable opportunities; don't miss out and regret it!
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In the cryptocurrency market, holding onto the seven major trading principles, one must deeply understand the offense and defense of investment to remain stable amidst opportunities and turn dangers into safety. V God has roamed the market for many years, well aware of the opportunities and traps within. If your investment is not going well and you feel dissatisfied with your losses, you can contact V God, and I will correct your past; if you are currently profitable, I will teach you how to preserve your profits; if you are still lost in the market, I am willing to guide you forward. The real tragedy in trading lies not in how much you suffer but in how many opportunities you miss! Seize the present and move forward together. I am V God, a person who will leave a name in the future.
V God has roamed the market for many years, deeply aware of the opportunities and traps within. If your investment is not going well and you feel dissatisfied with your losses, you can contact V God by leaving 999 in the comments.
