Risk of rolling positions
Let's talk about the rolling position strategy. Many people think this is risky. I can tell you that the risk is very low, much lower than the futures order opening logic you play.
If you only have 50,000, how to start with 50,000? First of all, this 50,000 should be your profit. If you still lose, don't read it.
If you open a position in Bitcoin 10,000, the leverage is set to 10 times, and use the position-by-position mode, only open 10% of the position, that is, only open 5,000 yuan as a margin. In fact, this is equivalent to 1x leverage and 2 points stop loss. If you stop loss, you only lose 2%, only 2%? 1,000 yuan. How did those people who were liquidated get liquidated? Even if you are liquidated, it's okay, isn't it just 5,000? How can you lose everything?
If you are right, Bitcoin rises to 1.1W, you continue to open 10% of the total funds, and set a stop loss of 2% loss. If you stop loss, you still make 8%, and so on. . . .
If Bitcoin rises to 15,000, and you increase your position smoothly, you should be able to earn about 200,000 in this 50% market, and about 1 million if you catch such a market twice.
There is no compound interest at all. 100 times is earned by 2 times 10 times, 3 times 5 times, and 4 times 3 times, not by 10% 20% compound interest every day and every month. That is nonsense.
The concept of rolling positions itself is not risky. Not only is it risk-free, but it is also one of the most correct ideas for futures trading. The risk is leverage. 10 times leverage can be rolled, 1 times can also be, and I usually use 2 or 3 times. If I catch it twice, won’t I get dozens of times the profit? At worst, you can use 0.1 times. What does this have to do with rolling positions? This is obviously a question of your own leverage choice. I never told you to operate with high leverage.
And I have always emphasized that you only invest one-fifth of your own money in the currency circle, and only invest one-tenth of the money in spot to play futures. At this time, the funds for futures only account for 2% of your total funds. At the same time, futures only use two or three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level.
Will you feel bad if you lose 20,000 yuan from 1 million yuan?
It is meaningless to always leverage. Some people have always said that rolling positions is risky and making money is just luck. I am not saying this to convince you. It is meaningless to convince others. I just hope that people with the same trading philosophy can play together.