How to roll positions:
In the crypto space, you need to find a way to first earn 1,000,000 in capital. There is only one way to earn that from a few thousand.
#加密市场反弹 That's rolling positions.
Once you have 1,000,000 in capital, you will find that your whole life seems different. Even if you don't use leverage, you can gain from spot price increases.
With 20%, you'd have 200,000, which is already the income ceiling for the majority of people in a year.
Moreover, when you can grow a few thousand into 100,000, you will also grasp some big money-making ideas and logic. At this point, your mindset will calm down a lot, and from then on, it's just about copying and pasting.
Don't always think of tens of millions or a billion; start from your own actual situation. Bragging only makes you feel good. Trading requires the ability to identify the size of opportunities; you can't always trade with small positions nor always with large positions. Generally, play with small positions, and when a big opportunity arises, then bring out the big guns.
For instance, rolling over positions should only be done when significant opportunities arise; you can't keep rolling. Missing out isn't a problem because you only need to roll successfully three or four times in your lifetime to go from zero to tens of millions, which is enough for an ordinary person to upgrade.
The ranks of money people.
Points to note when rolling over positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions.
You cannot roll your capital easily; you need to find high-certainty opportunities.
2. High-certainty opportunities refer to a sharp drop followed by sideways consolidation, and then a breakout upwards. The probability of following the trend at this point is very high.
Find the point of trend reversal and get on board from the start.
3. Only roll long positions;
▼ Rolling position risks
Let's talk about rolling strategies. Many people think this is risky, but I can tell you that the risks are very low, far lower than the logic of opening futures contracts.
If you only have 50,000, how to start with it? First, this 50,000 should be your profit. If you are still at a loss, then don’t bother looking.
If you open a position at 10,000 in Bitcoin with a leverage of 10 times, using a cross-margin mode and only opening 10% of the position, you are essentially using 1x leverage with a 2% stop loss. If you hit your stop loss, you only lose 2%, which is just 1,000. How do those who get liquidated end up losing everything? Even if you get liquidated, wouldn't you only lose 5,000? How can you lose it all?
If you are correct and Bitcoin rises to 11,000, you continue to open 10% of your total funds, also setting a 2% stop loss. If you hit your stop loss, you still earn 8%. Where's the risk? Didn't they say the risk is huge? And so on...
If Bitcoin rises to 15,000 and you manage to add to your position smoothly, you should be able to earn around 200,000 from this 50% market movement. Capturing two such movements would be around 1,000,000.
Compound interest simply does not exist. Earning 100 times is based on two instances of 10 times, three instances of 5 times, or four instances of 3 times, not from compounding 10% or 20% every day or month. That's nonsense.
This content not only has operational logic but also contains the core trading mindset and position management. As long as you understand position management, you cannot lose everything.
This is just an example; the general idea is like this. Specific details still need your own reflection.
The concept of rolling positions itself has no risk; not only is there no risk, but it is also one of the most correct approaches in futures trading. The risk lies in leverage. You can roll with 10x leverage, or even with 1x. I usually use two to three times; catching two times can yield dozens of times profit. At worst, you can use 0.x leverage. What does this have to do with rolling positions? This is clearly a matter of your own leverage choice; I never said to operate with high leverage.
Moreover, I always emphasize that in the crypto space, you should only invest one-fifth of your money, and only one-tenth of your spot money for trading futures. At this time, the futures capital only accounts for 2% of your total funds, using only two to three times leverage, and only trading Bitcoin, which significantly reduces the risk.
Would you be upset if you lost 20,000 from 1,000,000?
Always using leverage is pointless. There are constant claims that rolling positions are risky, that making money is simply lucky. I'm not saying this to persuade you or others; that's pointless. I just hope that those with similar trading philosophies can play together.
Currently, there is no filtering mechanism; there will always be jarring voices that interfere with the recognition of those who want to see.
▼ Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For instance, I have a futures account of 200,000 and a spot account ranging from 300,000 to over 1,000,000 randomly. When opportunities are abundant, I invest more; when there are fewer opportunities, I invest less.
With good luck, you can earn over 10 million RMB in a year, which is quite sufficient. If luck is bad and your futures account gets liquidated, it doesn't matter; the profits from spot trading can compensate for the losses from futures liquidation. After compensating, you can re-enter. Can you really not earn a single cent from spot trading in a year? I haven't reached that level of incompetence.
You may not make money, but you cannot lose money. I haven't been liquidated for a long time, and I often save a quarter or a fifth of my profits from futures separately. The profits will also be partially retained.
As an ordinary person, my personal advice is to use one-tenth of your spot position to trade futures. For example, if you have 300,000, use 30,000 to play. If you gain exposure, invest the profits from your spot trading back in. After experiencing ten or eight major trades, you will eventually grasp some insights. If you haven't figured it out yet, then perhaps this field is not suitable for you.
▼ How small funds can grow
Many people have misconceptions about trading, such as thinking that small funds should engage in short-term trading to grow their capital. This is completely wrong. This way of thinking is merely trying to exchange time for space, hoping to get rich overnight. Small funds should engage in medium to long-term trading to grow.
Is a piece of paper thin enough? If you fold a piece of paper 27 times, it becomes 13 kilometers thick. If you fold it 10 more times to 37 times, it's thicker than the Earth. If you fold it 105 times, the entire universe cannot contain it.
If you have 30,000 in capital, you should think about how to triple it in one go, and then triple it again in the next wave... then you'll have four to five hundred thousand. Instead of thinking about earning 10% today and 20% tomorrow... this will ultimately lead to your downfall.
Always remember, the smaller the capital, the longer the investment should be; aim to grow it through doubling rather than making quick profits from short-term trading.