When you have 1,000,000 in capital, you will find that your entire life seems different. Even if you don’t use leverage, if you hold a spot and it rises by 20%, you would have 200,000. 200,000 is already the ceiling of annual income for most people.
Moreover, when you can grow from tens of thousands to 1,000,000, you will grasp some ways and logic to make big money. At this point, your mindset will also be much calmer, and from then on, it’s just about copying and pasting.
Don’t always think in millions or billions; you need to start from your actual situation. Bragging only makes the braggers comfortable. Trading requires the ability to identify the size of opportunities; you can't always be in small positions and you can't always be in large positions. Usually, just play with small guns, and when a big opportunity comes, then you can bring out the heavy artillery.
For example, rolling positions can only be executed when there is a big opportunity. You cannot keep rolling; it’s okay to miss out because you only need to roll successfully three or four times in your life to go from 0 to tens of millions. Tens of millions is enough for an ordinary person to step into the ranks of the wealthy. Here are a few points to note when rolling positions:
1. Enough patience; the profits from rolling positions are enormous. As long as you can successfully roll a few times, you can earn at least tens of millions or even billions, so you shouldn’t roll easily; you need to find opportunities with high certainty.
2. High-certainty opportunities refer to a sharp drop followed by a sideways fluctuation, then an upward breakout. At this time, the probability of following the trend is very high. Identify the reversal point of the trend, and you need to get on board right from the start. 3. Only roll long positions;
Rolling position risk
Let’s talk about rolling position strategies. Many people think this is risky. I can tell you that the risk is very low, far lower than the logic of opening a position in futures trading.
If you only have 50,000, how do you start with 50,000? First, this 50,000 should be your profit. If you are still at a loss, just don't look anymore. If you open a position in Bitcoin at 10,000, with leverage set to 10 times, using isolated margin mode, only opening 10% of the position, which means only using 5,000 as margin, this is actually equivalent to 1x leverage, with a stop loss of 2 points. If you hit the stop loss, you only lose 2%, is that just a 2% loss? That's 1,000. How do those who get liquidated actually get liquidated? Even if you get liquidated, okay, you only lose 5,000, how can you lose everything?
If you are right and Bitcoin rises to 11,000, you continue to open 10% of your total capital, similarly setting a 2% stop loss. If you hit the stop loss, you still earn 8%. What about the risk? Didn’t they say the risk is huge? This can be extrapolated...
If Bitcoin rises to 15,000 and you successfully increase your position, in this 50% market, you should be able to make around 200,000. Seizing two such opportunities would result in about 1,000,000.
Compound interest does not exist. 100 times is achieved through 2 times 10 times, 3 times 5 times, 4 times 3 times. It's not from compounding 10% or 20% every day or month; that’s nonsense.
This content not only contains operational logic but also embodies the inner workings of trading psychology, position management. As long as you understand position management, you will never lose everything.