In the cryptocurrency world, you need to find a way to earn 1 million yuan in principal first. There is only one way to earn 1 million yuan in principal from tens of thousands of yuan.
That is rolling position.
When you have 1 million yuan in capital, you will find that your whole life seems to be different. Even if you do not use leverage, if the spot price increases by 20%, you will have 200,000 yuan. 200,000 yuan is already the annual income ceiling for most people.
And when you can make 100W from tens of thousands, you will also be able to grasp some ideas and logic of making big money. At this time, your mentality will be much calmer, and the rest of the time is just copy and paste.
Don't always boast about tens of millions or hundreds of millions. You should start from your actual situation. Bragging all the time will only make you feel good. Trading requires the ability to identify the size of opportunities. You can't always have a light position or a heavy position. Usually, you can play with small guns, and when the big opportunity comes, you can pull out the damn Italian cannon.
For example, rolling positions can only be performed when a big opportunity comes. You can't roll positions all the time. It doesn't matter if you miss it, because you only need to roll positions successfully three or four times in your lifetime to go from 0 to tens of millions. Tens of millions are enough for an ordinary person to join the ranks of wealthy people.
A few points to note when rolling:
1. Be patient enough. The profit of rolling positions is huge. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you cannot roll easily. You must look for opportunities with high certainty.
2. An opportunity with high certainty refers to sideways fluctuations after a sharp drop, and then an upward breakthrough. At this time, the probability of following the trend is very high. Find the point of trend reversal and get on board at the beginning.
3. Only roll more;
▼Rolling Risk
Let's talk about the rolling strategy. Many people think this is risky, but I can tell you that the risk is very low, much lower than the futures order opening logic you are playing.
If you only have 50,000, how do you use it to start your business? First of all, this 50,000 should be your profit. If you are still losing money, don't read this.
If you open a position in Bitcoin 10,000, with a leverage of 10x, and use the position-by-position mode, and only open a 10% position, that is, only open a 5,000 yuan margin, which is actually equivalent to 1x leverage, 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 were liquidated, wouldn't you only lose 5,000 yuan? How could you lose everything?
Suppose you are right, and Bitcoin rises to 11,000, and you continue to open 10% of the total funds, and set a 2% loss stop loss. If the stop loss is reached, you still make 8%. What about the risk? Isn’t it said that the risk is very high? And so on. . . .
If Bitcoin rises to 15,000, and you successfully increase your position, you should be able to earn around 200,000 in this 50% market trend. If you catch two such market trends, you will make around 1 million.
There is no such thing as compound interest. 100 times the profit is earned by increasing ten times twice, five times three times, and three times four times, not by compounding at 10% or 20% every day or every month. That's nonsense.
This content not only contains the operational logic, but also contains the core skills of trading 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, you still need to think about the specific details yourself.
The idea 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 in leverage. You can roll positions with 10x leverage, and 1x leverage is also acceptable. I usually use 2x or 3x. If I catch it twice, won’t I still get dozens of times the profit? At worst, you can use 0.1x or a few times. What does this have to do with rolling positions? This is obviously a matter of your own leverage choice. I have never told you to operate with high leverage.
And I have always emphasized that you should only invest one-fifth of your money in the cryptocurrency circle, and only invest one-tenth of your money in spot futures. At this time, the futures funds only account for 2% of your total funds. At the same time, futures only use two or three times leverage, and only play Bitcoin. It can be said that the risk is reduced to an extremely low level.
Would you feel sad if you lost 20,000 out of 1 million?
There is no point in always arguing. Some people have always said that rolling positions is risky and making money is just luck. I am not saying this to convince you. There is no point in convincing others. I just hope that people with the same trading philosophy can play together.
However, there is currently no screening mechanism, so there are always harsh voices that interfere with the recognition of those who want to watch.
▼ Fund Management
Trading is not full of risks. Risks can be resolved by fund management. For example, I have a futures account of 200,000 US dollars, and a spot account ranging from 300,000 US dollars to 1,000,000+ US dollars randomly. If there is a big opportunity, I will charge more, and if there is no opportunity, I will charge less.
If I'm lucky, I can earn more than 10 million RMB a year, which is more than enough. If I'm unlucky, the worst case scenario is that my futures account will be blown up. It doesn't matter. The spot profit can make up for the loss of the futures account. After making up for it, I can rush in. Can't I make a penny in the spot market in a year? I'm not that bad.
I can not make money but I cannot lose money so I have not had a margin call for a long time. Moreover, for futures trading, I usually withdraw one-quarter of my profit and keep one-fifth separately. If I lose all the money, I will also retain some of the profit.
As an ordinary person, my personal advice to you is to use one tenth of the spot position to play futures. For example, if you have 300,000, use 30,000 to play. Once you are exposed, go for the profit of spot. After you have been exposed eight or ten times, you will always be able to figure out some inside information. If you still haven't figured it out, don't play, you are not suitable for this line of work.
▼How to grow small funds
Many people have many misunderstandings about trading. For example, they think that small funds should be invested in the short term in order to grow the funds. This is a complete misunderstanding. This kind of thinking is completely trying to exchange time for space and try to get rich overnight. Small funds should be invested in the medium and long term in order to grow them.
Is a piece of paper thin enough? If a piece of paper is folded in half 27 times, it is 13 kilometers thick. If it is folded in half again 10 times and folded 37 times, the earth is not as thick as it. If it is folded 105 times, the entire universe will not be able to contain it.
If you have 30,000 yuan in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... so that you can have 400,000 or 500,000 yuan. Instead of thinking about making 10% today and 20% tomorrow... this will kill you sooner or later.
You must remember that the smaller the capital, the more you should invest in the long term, rely on doubling of compound interest to expand it, and avoid short-term investments to earn small profits.
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