Many cryptocurrency friends privately message asking how small funds can trade to grow larger. Many of them must have started with small funds; no one begins with large funds or all their assets to trade cryptocurrencies.
Next, I want to talk about this knowledge point — rolling positions.
How to roll positions:
In the cryptocurrency world, you need to find a way to first earn 1 million in capital, and the only way to earn 1 million from tens of thousands is through one path.
That is rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you do not use leverage, just holding spot will appreciate.
20%, then you have 200,000. 200,000 is already the income ceiling for most people in a year.
And when you can grow from tens of thousands to 100,000, you will grasp some thoughts and logic for making big money. At that time, your mindset will calm down a lot, and moving forward will just be a matter of copying and pasting.
Don’t think about millions or billions all the time; start from your actual situation. Always bragging only makes you feel good. Trading requires the ability to identify the size of opportunities. You cannot always trade with small positions, nor can you always trade with large positions. Usually, play with small positions, and when a big opportunity comes, pull out the artillery.
For example, rolling positions. This is an opportunity that should be operated when it comes. You cannot keep rolling; missing it is okay 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 are enough for an ordinary person to upgrade.
In the ranks of money makers.
Key points to note when rolling 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 to hundreds of millions. So, you must not roll carelessly; you need to find high-certainty opportunities.
2. A high certainty opportunity refers to a horizontal consolidation after a crash, followed by an upward breakout. At this time, the probability of following the trend is very high, so you need to identify the turning point of the trend and get in from the very beginning.
3. Only roll long positions;
▼ Risks of rolling positions
Let’s talk about the rolling position strategy. Many people think this carries risks. I can tell you that the risks are very low, far lower than the logic of the futures positions you are playing.
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, then don’t look.
If you open a position in Bitcoin at 10,000, set the leverage at 10x, and use a margin of only 10% of the position, that means you are only using 5,000 as collateral. In fact, this is equivalent to 1x leverage, with a stop loss of 2%. If you hit the stop loss, you only lose 2%, which is only 2%? That's 1,000. How do those who face liquidation actually face it? Even if you face liquidation, fine, you only lose 5,000, right? How can you lose everything?
If you are correct, and Bitcoin rises to 11,000, you continue to open 10% of your total funds, setting a stop loss at 2%. If you hit the stop loss, you still earn 8%. Where’s the risk? Didn't they say the risk is very high? And so on...
If Bitcoin rises to 15,000 and you add positions smoothly, during this 50% rally, you should earn around 200,000. Capturing two such rallies would bring you around 1 million.
Compound interest does not exist at all. 100 times is achieved by two rounds of 10 times, three rounds of 5 times, or four rounds of 3 times, not through daily or monthly compounding of 10% or 20%. That’s nonsense.
This content not only has operational logic but also contains the core internal principles of trading, position management. As long as you understand position management, you cannot lose everything.
This is just an example; the general idea is like this. The specific details still need to be pondered by yourself.
The concept of rolling positions itself carries no risk; not only is there no risk, but it is also one of the most correct thoughts for trading futures. The risk lies in leverage. You can roll with 10x leverage or even 1x. Generally, I use two to three times leverage. Capturing two such opportunities yields tens of times in profit. If all else fails, you can use 0.something leverage. What does this have to do with rolling positions? This is clearly your choice of leverage; I have never suggested using high leverage for operations.
Moreover, I have always emphasized that in the cryptocurrency world, you should only invest one-fifth of your total funds and only one-tenth of your funds in spot trading for futures. At this time, the funds allocated for futures only account for 2% of your total funds, and futures should only use two to three times leverage, and only trade Bitcoin, which can be said to reduce the risk to a very low level.
Will you feel heartbroken if you lose 20,000 from 1 million?
Constantly leveraging has no meaning. There are always people saying that rolling positions are risky, and that making money is just a matter of luck. This isn’t meant to convince you or others; that’s meaningless. I just hope that people with similar trading philosophies can play together.
Currently, there is no filtering mechanism, and there are always jarring voices that interfere with the recognition of those who want to watch.
▼ Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For example, I have a futures account with 200,000 and a spot account ranging randomly from 300,000 to over 1 million. When opportunities are abundant, I invest more; when there are fewer opportunities, I invest less.
If you are lucky, you can earn over ten million RMB in a year, which is more than enough. If you are unlucky, the worst-case scenario is the futures account facing liquidation, but it doesn't matter. Spot profits can compensate for the losses from futures liquidation. After compensating, you can reinvest. Is it really impossible to earn a single cent from spot trading in a year? I am not that bad.
You can avoid making money, but you cannot lose money. I have experienced liquidation a long time ago, and in futures, I often save one-fourth to one-fifth of the profits separately. Even if I face liquidation, I will retain a portion of the profits.
As an ordinary person, my personal advice is to use one-tenth of your spot position to play futures. For example, if you have 300,000, use 30,000 to play. Once exposed, you can reinvest the profits from spot trading. After experiencing liquidation ten or eight times, you will eventually grasp some insights. If you still haven’t figured it out, then don’t play; this industry may not suit you.
▼ How to grow small funds
Many people have misconceptions about trading, such as thinking that small funds should engage in short-term trading to accumulate wealth. This is completely a misconception. This kind of thinking is purely trying to exchange time for space, attempting to get rich overnight. Small funds should engage in medium to long-term trading to grow larger.
How thin is a piece of paper? If a piece of paper is folded 27 times, it is 13 kilometers thick. If it is folded 10 more times, up to 37 times, it would be thicker than the Earth. If folded 105 times, the entire universe would not be able to contain it.
If you have 30,000 in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... that way, you will have four to five hundred thousand. Rather than thinking about making 10% today, 20% tomorrow... this approach will eventually lead to your downfall.
Always remember, the smaller the funds, the more you should focus on long-term trading. Use compound interest from doubling your funds to grow larger. Do not engage in short-term trading for small profits.
In the past few days, I have been preparing for the layout of a divine order that is about to begin!!!
Doubling is still quite simple.
I am also preparing to find some potential coins to hold until the end of the year.
Comment 888 to get on board!!!
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