Revealing Rolling Warehouse: A "Double-Edged Sword" that Leverages Small Capital to Unlock Great Wealth
Rolling warehouse, an operation that can bring exponential growth in returns, carries extremely high risks behind it, and operations must be cautious. Combining rolling warehouses with compound interest is a cost-effective strategy, with its core lying in effectively utilizing unrealized profits.
1. Example of Rolling Warehouse Operation
Taking 5000 capital and 10x leverage, with BTC current price at 10000 as an example. After establishing a position, BTC rises to 11000, a 10% increase, yielding a profit of 5000. Floating profits with additional capital means adding 5000, and if it rises another 10% to 12000, the total including principal and interest will be 25000; rolling warehouse involves closing the previous position, using the total of 10000 including principal and interest to re-establish a position, which under the same increase results in 20000 including principal and interest. If this cycle continues, when BTC rises to 20000, a 100% increase, floating profits will ultimately reach 3250000, while rolling warehouse will achieve 5120000, showing a huge difference.
2. Comparison of Rolling Warehouse and Growth Models
Regular position establishment is similar to linear growth, like driving a car with steady acceleration; floating profits with additional capital are based on linear growth; rolling warehouse represents exponential growth, akin to technological development, slow in the beginning and rapid in the later stages. Strictly speaking, contracts do not count as linear growth, but for ease of understanding, this analogy can be made.
3. Essential Conditions and Risks of Rolling Warehouse
Rolling warehouse operations have strict conditions, requiring good fund management, setting profit-taking and stop-loss, and the prerequisite is a bull market with unilateral increases. The biggest risk lies in the possibility of losing everything when encountering a retracement of more than 10 points. However, with reasonable profit-taking and stop-loss settings, one can still give it a try during a major market cycle that occurs once every four years.
4. The Relationship Between Rolling Warehouse and Compound Interest
The true meaning of rolling warehouse lies in compound interest, which fully mobilizes unrealized profits (floating profits). Some people leverage and think with compound interest, transforming small capital into substantial wealth, which is the only possibility for small capital to earn big money. To earn big money with small capital, three points must be met: compound interest thinking, bull market conditions, and correct operations, none of which can be lacking.
5. Application of Compound Interest Thinking
Compound interest thinking is applicable not only to rolling warehouse but also to spot trading. For example, with an annualized rate of 100% and 5000 capital, 6 cycles can reach 320000, while 11 cycles can reach 10240000, with the difficulty of realization being much lower than that of futures rolling warehouse.
