Rolling operations are not a strategy applicable at every moment. Only in the following three situations does the probability of success for rolling operations increase; other times should be approached with caution.
Choice direction after long-term sideways volatility reaches a 'new low'
If the market has experienced a period of sideways consolidation, and volatility is close to a new low, then once the direction becomes clear, rolling operations can quickly yield profits. However, at this time, ensure that you have determined the breakthrough direction of the price, and don’t be confused by the market's chaotic fluctuations.
Buying the dip after a significant drop following a major rise in a bull market
After a significant rise in a bull market, there may occasionally be a large pullback, which is a golden opportunity for rolling operations. During the pullback, you can buy in accordance with the trend, adding to your position at a low price to prepare for the upcoming rise. But remember, don’t let temporary panic cause you to miss this opportunity.
When breaking through significant resistance/support levels on a weekly chart
If the price breaks through significant support or resistance levels on a weekly chart, it may indicate that the market is entering a new phase. At this point, through rolling operations, reasonable increases can capture the long-term trend of this breakthrough.
Specific methods for rolling operations:
Floating profit margin increase
After obtaining floating profits, consider increasing your position. However, don’t rush before adding to your position. Ensure that your holding cost has been reduced, so that even if the market fluctuates slightly, you won’t easily fall into losses. Remember, rolling over is not for blind increases, but for choosing the right timing and progressing steadily.
Base position + T+0 rolling operation
This is a common operational method. You can divide your funds into two parts: one part holds a base position, while the other engages in high sell-low buy T+0 operations. The specific ratio should be determined based on your risk tolerance. For example, you can choose to do T with half of your position, 30% base position for T, or 70% base position for T, etc. This approach not only effectively reduces holding costs but also enhances your profit potential.
Summary:
Rolling operations are not a momentary 'gamble,' but a precise operation based on market analysis and strategy. As long as you understand when it is suitable to roll over and how to manage your position reasonably, you can achieve greater profits amidst market fluctuations. Remember, at unsuitable times, giving up rolling over is the smartest choice.