Liangxi can roll $1,000 into $10 million, not only relying on market analysis but also an important factor is rolling the position.

What is rolling the position?

Rolling the position, simply put, is trying multiple times with a small amount of capital, achieving doubled returns through high leverage in a successful market trend. Although the process sounds exciting, the core is actually risk control, precise judgment, and strict execution.

Case sharing: Rolling from $300 to tens of thousands of dollars.

Suppose you have $300 (about 2000 RMB), and you use this money for rolling the position. You only take out $10 each time to open a trade, choosing 100x leverage. That's right, 100x leverage! This means any 1% rise or fall will be magnified into 100 times the profit or loss.

First and foremost, the key is to firmly establish your direction - whether bullish or bearish. Before placing an order, you must make a judgment and have the execution power; do not change direction casually. If you continuously lose dozens of times, it may mean your direction is wrong. At this point, it is best to stop and reflect, and you may even need to temporarily exit the market and wait for a market reversal.

But suppose you make your 20th trade, and the market finally moves in the direction you anticipated. As long as the price rises or falls by 1%, you can earn $20 from your $10. Next, you take out $10 as profit and continue to invest the remaining $20. This process is called 'rolling the position.'

If there is another 1% rise or fall, $20 will become $40. At this stage, the cumulative increase or decrease has reached about 2%, and your capital has quadrupled. Continuing this strategy, amid the common 10% fluctuations in Bitcoin over a month, you could quickly roll your principal into thousands or even tens of thousands of dollars.

Set clear goals

An important principle of rolling operations is to set clear goals. For example, when you earn $5,000 or $10,000, stop rolling the position, take out your profits, and reduce risks. This strategy helps you lock in gains and avoid being overly greedy in pursuit of larger goals, which could lead to liquidation.

The consequence of greed: If you do not take profits in time and continue to roll the position, you may end up liquidating due to a wrong judgment, rendering all previous efforts futile. Therefore, controlling desire and setting profit-taking points are always key to safe trading.

When should you restart rolling the position?

When you have earned tens of thousands of dollars through rolling the position, you can choose to stop and wait. Wait for a clearer market trend, such as a significant rise or fall cycle of a certain cryptocurrency. At this point, you can continue to use $500 as your principal, taking out $10 each time for 100x leverage operations. By patiently waiting, once a one-sided trend emerges, it could offer you the chance to achieve several times or even dozens of times your profit within a few days.

However, it should be noted that such opportunities are not common, and you may need several months or even a year or two to encounter a real major market. Moreover, the ups and downs and false breakthroughs in the market will expose you to many unpredictable risks. Therefore, the success of rolling operations relies not only on precise judgment but also requires a lot of patience and self-discipline.

To understand compound interest in a more intuitive and straightforward way, please refer to the detailed image below.

The true meaning of rolling the position lies in compound interest, and the true meaning of compound interest is to fully mobilize unrealized profits, which refers to the floating profits.

Many people who trade contracts always face liquidation.

In summary, the reasons boil down to the following points:

Unable to control your hands: Always wanting to open positions, frequent trading, ignoring the overall market trend.

No patience: Always thinking about making big money in a short time, but unwilling to wait for a suitable opportunity.

Not following the plan: Although there is a trading plan, it was not strictly followed in practice, leading to emotional trading and ultimately liquidation.

When trading contracts, the biggest taboos are greed and impulsiveness. You need to strictly execute your trading plan; even if market fluctuations tempt you, you must firmly control your hands. Otherwise, the final result will definitely be liquidation, or even total loss of assets.

Poison Brother has been navigating the market for many years, well aware of the opportunities and traps within. If your investment is not going well and you feel regret over your losses, you can leave a comment with 999.

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