In the cryptocurrency market, accumulating a principal of 1 million is key. By using a rolling position strategy, starting with small funds, once you reach a principal of 1 million, making money will become easier. There are a few points to note about the rolling position strategy:
Patience and Certainty: You need to have enough patience to wait for high-certainty opportunities, namely the trend reversal point after a sharp decline followed by a sideways consolidation and upward breakout.
Position Management: When rolling positions, use a small position (like 30% of total capital) and set a reasonable stop-loss (like 15%) to manage risk. Even if a stop-loss is triggered, losses will still be limited.
Gradual Position Increase: As the market rises, gradually increase your positions while maintaining the same stop-loss ratio to lock in profits and reduce risks.
Avoid High Leverage: Although the rolling position strategy itself is relatively low risk, high leverage can amplify risks. It is advisable to use lower leverage.
Capital Management: Keep the funds in your futures account within a certain proportion of your total capital, and use profits from your spot account to cover losses in the futures account. At the same time, regularly withdraw profits from the futures account to reduce overall risk.
Making Big with Small Funds: Small funds should focus on medium to long-term trading rather than short-term trading. By capturing a few significant market fluctuations, rapid capital growth can be achieved.
Mindset and Philosophy: Maintain a calm mindset and do not easily pursue overnight wealth. Start from the actual situation, gradually accumulate experience and capital. At the same time, seek out others who share the same trading philosophy for mutual exchange and learning.
In summary, the rolling position strategy is an effective way to grow capital, but the key lies in patience, position management, capital management, and the correct trading philosophy. Through gradually accumulating experience and capital, ordinary people also have the opportunity to achieve rapid wealth growth in the cryptocurrency market.
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