Many people still want to roll their positions now?
Listen to my advice!
In the 519 incident in 2021, the cryptocurrency market experienced an epic collapse. The well-known Internet celebrity Liang Xi became rich overnight because of his bold short selling. His short order started from $1,000 and he eventually earned $30 million by continuously rolling his positions. On May 11, 2022, Luna coin, nicknamed "Moutai in the coin circle", experienced a collapse. In just one month, the price of Luna coin fell from $119 per coin to less than $0.0002, a 99.99% plunge. Many people lost all their money overnight. This is the perfect time to short Luna coin through rolling positions.
Similarly, on November 9, 2022, FTX, the world's top cryptocurrency exchange founded by SBF, and hedge fund Alameda collapsed. Subsequently, the price of FTT, the platform coin of FTX, plummeted by more than 90%, directly affecting the entire virtual currency market. Starting from 12:00 am on November 9, the price of FTT fell from a high of $17.71 to $4.6 in less than 3 hours, a drop of 74%. This is also the best time to roll short FTT coins.
In addition, in the bull market, the market conditions of Bitcoin in the final stage of the high rise are often rapid and fierce, which is the best time to roll long. And in the decline stage after the bull market top, it is an excellent time to roll short.
Many people may not be familiar with the concept of rolling, and emphasize it again. The definition of rolling is "small principal, high leverage, full position trading, stop loss if the position is blown up, and increase the position if there is profit", usually choose 10 times leverage, and the position will be blown up when the price falls by 10%. The advantage of rolling is that in a one-way market, it can realize huge profits the fastest. After using rolling, there is no need to worry about price fluctuations, because the top of the bull market is unique, and it will eventually rise no matter how many callbacks it experiences. However, rolling is extremely risky and is only effective in a one-way market. It must use a small principal, and even if there is a loss, it is not painful. The key is to seize the opportunity, and only a few people can succeed. The difficulty lies in the fact that it takes courage and the right mindset to seize opportunities.
Rolling trading, a seemingly high-risk strategy, has many followers in the cryptocurrency circle. Behind this, it actually reflects the uniqueness of the cryptocurrency market and the advantages of rolling trading in this field.
First of all, the core of rolling trading lies in the accurate prediction of market trends, and based on this prediction, high-leverage full-position trading is carried out.In the currency circle, due to the extremely high volatility and uncertainty of the market, this strategy can often bring significant returns in a short period of time. Especially when there is a unilateral upward or downward trend in the market, roll traders can quickly seize the opportunity and achieve rapid capital appreciation.
Secondly, the reason why rolling trading is popular in the currency circle is also because of the characteristics of the currency circle market. The currency market is often affected by various factors, such as policy, technology, market sentiment, etc. Changes in these factors may cause violent market fluctuations. This kind of fluctuation is exactly what roll traders expect. They achieve profits by keenly capturing market changes and using high leverage to trade.
In addition, rolling trading also has certain psychological effects in the currency circle. For many traders, rolling is not only an investment strategy, but also a challenge and excitement. They enjoy the process of finding opportunities in the market, getting in and out quickly, and making huge profits. This psychological effect also prompts more people to join the ranks of roll trading.
However, we must also see the high risk of roll trading. Since it relies on accurate predictions of market trends and high-leverage trading methods, once judgment is made incorrectly or the market fluctuates in the opposite direction, you may face huge losses. Therefore, when trying to roll positions, we must have full risk awareness and take corresponding risk control measures.
In general, the reason why rolling trading is popular in the currency circle is that it can bring significant profits in a short period of time and has certain psychological effects. But at the same time, we must also recognize its high risk and treat it with caution. While pursuing high returns, we must also ensure the safety of funds and stable investment performance.
