Why do so many people still like rolling positions?
The core of the rolling position strategy lies in the prediction of market trends, which is only applicable to one-way markets. In the field of cryptocurrency, the market often falls rapidly and violently. Compared with the rising market, the rolling position strategy has more advantages. Rolling positions require individuals to have superb timing grasping ability. Although there are opportunities for rolling positions in the cryptocurrency market, opportunities are often rare. The rolling position strategy is suitable for extreme market conditions, especially extreme plunges.
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 through continuous rolling 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, the world's top cryptocurrency exchange FTX and hedge fund Alameda founded by SBF collapsed, and then the price of FTX's platform currency FTT plummeted by more than 90%, directly affecting the entire virtual currency market. Starting at 12:00 a.m. 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%, which is also the best time to roll short the FTT coin. In addition, in the bull market, the market conditions in the last stage of Bitcoin's surge are often rapid and fierce, which is the best time to roll long. And in the decline stage after the bull market's top surge, 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 it can achieve huge profits the fastest in a one-way market. After using rolling, you don't have to worry about price fluctuations, because the top of the bull market is unique and will eventually rise no matter how many corrections it experiences. However, rolling is extremely risky and is only effective in a one-way market. You must use a small amount of capital, and even if you lose money, you won't feel bad. The key is to seize the opportunity, and only a few people can succeed.The difficulty is that it takes courage and the right mentality to seize opportunities.
Why have we only recently started discussing the rolling strategy? Because it is only effective in a bull market. Liang Xi realized that it was the one-way market that made him successful, not the one-way market that destroyed him after he became rich overnight in the 519 incident. Times make heroes, and the same strategy varies greatly in different market conditions. When the wind comes, pigs can fly even if they stand at the wind. When the wind stops, understanding the core of the rolling strategy is the key. Let's continue to explore this topic.
In the cryptocurrency market, the rolling strategy requires special caution and a high degree of market insight. The volatility and uncertainty of the market make rolling operations full of risks, requiring investors to have a firm sense of risk control and good psychological quality. Successful rolling operations often require timely market analysis and decision-making in order to quickly adjust positions when the market changes.
In addition, the importance of risk management must also be considered during the implementation of the rolling strategy. Reasonable setting of stop-loss points and avoiding the use of excessive leverage are the key to ensuring the robustness of rolling operations. Due to the high volatility and extremeness of the cryptocurrency market, rolling operations may face greater risks, so investors need to have adequate preparation and countermeasures.
In actual operation, investors can combine technical analysis and fundamental analysis to assist in rolling decisions to improve the accuracy and success rate of operations. At the same time, it is also crucial to regularly evaluate and adjust the rolling strategy to adapt to market changes and changes in risks.
In general, the rolling strategy is a high-risk and high-return trading strategy that requires investors to have a deep understanding of the market and firm execution. When implementing the rolling strategy, be sure to be cautious, do what you can, avoid blindly following the trend and excessive risk-taking to ensure the safety of funds and stable trading performance.
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