How to roll positions:
In the cryptocurrency space, you need to find a way to first earn $1,000,000 in capital. The only path from tens of thousands to $1,000,000 is...
That is rolling positions.
Once you have 1,000,000 in capital, you'll find that your entire life seems different. Even if you don't use leverage, just by holding assets, you can benefit from price increases.
If you have 20%, that's $200,000, and for most people, $200,000 is the ceiling of annual income.
Moreover, when you can grow from tens of thousands to 100,000, you'll also grasp some big money-making strategies and logic. At this point, your mindset will calm down a lot, and from then on, it's just a matter of copying and pasting.
Don't always think in terms of millions or billions; start from your actual situation. Bragging only makes the braggers feel good. Trading requires the ability to recognize the size of opportunities. You can't always use small positions or heavy positions; usually, trade with small positions, and when a big opportunity arises, then bring out your big guns.
For example, rolling positions is an opportunity that should be taken when the time is right. You can't keep rolling; if you miss it, that's okay. In your lifetime, you only need to successfully roll three or four times to go from zero to tens of millions. Tens of millions is enough for an ordinary person to upgrade their life.
You will join the ranks of the wealthy.
A few points to note about 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 or even hundreds of millions.
You can't roll positions easily; you need to find high-certainty opportunities.
High-certainty opportunities refer to a sharp decline followed by sideways movement, followed by an upward breakout. The probability of following the trend at this moment is very high.
Find the point of trend reversal and get in early.
3. Only roll long positions.
▼ Risks of rolling positions
Let's talk about rolling strategies. Many people think this is risky, but I can tell you that the risk is very low, much lower than the logic of opening futures positions.
If you only have $50,000, think about how to start with that $50,000. First, this $50,000 should be your profit. If you are still losing, then don’t look at it.
If you open a position on Bitcoin at $10,000 with a 10x leverage and use a cross-margin mode, opening only 10% of your position means using $5,000 as margin. This is essentially 1x leverage with a 2% stop loss. If you hit the stop loss, you've only lost 2%, which is only $1,000. How do people end up liquidating? Even if you do get liquidated, isn't that just a loss of $5,000? How can you lose everything?
If you're correct and Bitcoin rises to $11,000, continue to open 10% of your total capital, also setting a 2% stop loss. If you hit the stop loss, you've still made 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 successfully add to your position, during this wave of 50% market movement, you should be able to earn around $200,000. If you catch two such waves, that's about $1,000,000.
Compound interest does not exist; 100 times is earned through two instances of 10 times, three instances of 5 times, or four instances of 3 times, not through daily or monthly 10% or 20% compounding. That's nonsense.
This content not only contains operational logic, but also embodies the core principles of trading, namely position management. As long as you understand position management, you cannot completely lose.
This is just an example; the general idea is like this. The specific details still require you to think deeply.
The concept of rolling positions itself carries no risk; in fact, it's one of the most correct approaches to futures trading. The risk lies in leveraging. You can roll with 10x leverage or even 1x; I usually use two to three times leverage. If you catch two good opportunities, isn't that the same as making tens of times your investment? Even if you use 0.3x leverage, what does that have to do with rolling positions? This is clearly your choice of leverage; I have never said you should operate with high leverage.
Moreover, I always emphasize that in the cryptocurrency space, you should only invest one-fifth of your money, and only one-tenth of your money in spot trading to play futures. This way, the funds in futures only account for 2% of your total funds, and futures are only used with two to three times leverage, focusing only on Bitcoin, which can be said to minimize risk to an extremely low level.
If you lose 20,000 out of 1,000,000, would you feel heartbroken?
It's always pointless to just leverage; there are always people saying that rolling positions is risky, and that making money is just about luck. I'm not saying this to convince you or others; that doesn't matter to me. I just hope to find like-minded traders so we can play together.
Currently, there is no screening mechanism; there will always be jarring voices that interfere with people's recognition of what they want to see.
▼ Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For example, I have a futures account of $200,000 and a spot account ranging from $300,000 to $1,000,000. When opportunities arise, I invest more; when there are no opportunities, I invest less.
With good luck, you can earn over ten million RMB in a year, which is already quite sufficient. In the worst-case scenario, even if your futures account gets liquidated, it doesn't matter; the profits from spot trading can compensate for the losses from futures liquidation. After compensating, you can reinvest. Is it really impossible to earn even a penny from spot trading in a year? I haven't reached that level yet.
You can not make money, but you cannot lose money. That's why I haven't been liquidated for a long time. And I often save one-fourth to one-fifth of my profits separately. Even if I incur losses, part of the profits will still be retained.
As an ordinary person, my suggestion is to use one-tenth of your spot position to play futures. For example, if you have $300,000, use $30,000 for trading. If you incur losses, reinvest the profits from spot trading; after experiencing losses several times, you should be able to grasp some insights. If you still can't figure it out, then don’t trade; this isn't the right field for you.
▼ How to grow small capital
Many people have misconceptions about trading. For example, they think that small capital should be used for short-term trading to grow it. This is completely misguided thinking; this mindset is just attempting to exchange time for space, hoping to get rich overnight. Small capital should focus on medium to long-term strategies to grow.
Is one sheet of paper thin enough? If a sheet of paper is folded 27 times, it becomes 13 kilometers thick. If folded 10 more times, reaching 37 folds, it would be thicker than the Earth. If folded 105 times, the entire universe could not contain it.
If you have $30,000 in capital, you should be thinking about how to triple it in one wave, and then triple it again in the next wave... This way, you'll have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... Doing so will only lead to your downfall.
You must remember, the smaller the capital, the more you should focus on long-term investments. Rely on compounding returns to grow your capital; don't chase small profits through short-term trades.
