This content covers the essence of my 10 years of trading, from basic skills to core strategies, and is definitely a must-read for beginners!
All are valuable insights, especially recommended for those with a weaker foundation. Next, we will delve into some key content:
1. Small capital accumulation methods for turning around.
2. High capital practical stable profits.
3. Core logic of digital currency investment.
From deep engagement in fan circles, I've learned that there are many ordinary people in the crypto circle, even students, who are eager to invest and profit. However, many do not truly understand how to invest in the crypto circle.
First, it must be clear that investing in digital currency is financial investment. Our goal is to achieve continuous profits and double our wealth within a certain period. If you always expect to get rich overnight, constantly watching for ups and downs, it is no different from gambling.
In addition to waiting for opportunities, trading also requires the ability to identify the size of opportunities. You cannot always hold a small position, nor can you always hold a large position. You can test the waters with a small position during normal times and increase your position when a big opportunity arises.
For example, rolling positions is a strategy that can only be executed when big opportunities arise. You cannot operate frequently; missing once doesn’t matter because you only need to succeed a few times in your life to go from zero to hundreds of thousands or even millions, enough for an ordinary person to join the ranks of the wealthy.
1. Rolling positions, suitable for small and medium funds.
Assuming today you only have $1,000, and Bitcoin is currently worth $30,000, you believe Bitcoin is about to rise. If you buy in with $1,000 and it rises to $36,000, you earn $200. Since you only used $1,000, with a doubling of the price, you only made $200.
Occasionally making some small money with stable bloggers is fine, but if you want to get rich quickly, then you need to consider contracts.
Assuming you also believe Bitcoin is about to rise by 20% * 5, your $1,000 could become $1,000.
However, contracts are not something to play with casually. Small bets for big gains also have methods.
In fact, rolling positions only requires attention to these points:
1: Sufficient patience, the profits from rolling positions are enormous. As long as you can succeed a few times, you can earn at least tens of millions or even billions. Therefore, you should not roll positions easily; you must find high-certainty opportunities.
2: High certainty opportunities refer to those where the price has experienced a sharp drop and then continues to fluctuate within a certain range before breaking upwards. At this point, the probability of following the trend is very high, and you need to get on at the point of trend reversal.
3: Have patience, wait for opportunities, even if there’s only one opportunity in a month or a few months, seize it as soon as it comes.
▼ Rolling position risks
When it comes to rolling position strategies, many people feel there’s risk. In fact, let me tell you, the risk is very low, far lower than the risks of playing futures.
Assuming you only have $50,000 and want to start with this capital. First, this $50,000 must be your profit; if you are still at a loss, do not continue.
If you enter Bitcoin at a price of $10,000 and set a 10x leverage using the isolated margin model, only opening a position of 10%, it is equivalent to using only $5,000 as margin, which actually amounts to 1x leverage. Set a 2% stop-loss; if you hit the stop-loss, you will only lose 2%, which equals a loss of $1,000. How do those who get liquidated get liquidated? Even if you get liquidated, at most, you only lose $5,000; you won't lose everything.
Assuming Bitcoin rises to 11,000, you continue to open 10% of your total capital, setting a 2% stop-loss. If you hit the stop-loss, you can still earn 8%. Where's the risk? Isn't it said that the risk is high? And so on...
If Bitcoin rises to 15,000, and you successfully increase your position, during this 50% market movement, you should be able to earn around 200,000. Catching such movements twice could yield about 1 million.
There is no such thing as compound interest; 100x leverage is achieved through 2 times 10x, 3 times 5x, 4 times 3x—not through 10%, 20% monthly compounding, which is unrealistic.
This content not only includes operational logic but also embodies the core inner workings of trading—position management. As long as you understand position management, it's basically impossible to lose everything.
This is just an example; the general idea is like this. Specific details still require your own thought.
The concept of rolling positions itself is not risky; it not only has no risk but is also one of the most correct approaches to futures trading. The risk lies in leverage.
10x leverage can roll, 1x can too. I generally use two to three times leverage; catching two opportunities yields the same high returns. If not, you can use 0.x leverage. What does this have to do with rolling positions? This is actually about your own choice of leverage. I have never said you should operate with high leverage.
Moreover, I have always emphasized that in the crypto circle, only invest one-fifth of your money, and only use one-tenth of your spot funds to play futures. At this point, the funds for futures only account for 2% of your total funds, and futures only use two to three times leverage, and only play Bitcoin. This can be said to reduce the risk to an extremely low level.
Would you feel hurt if you lost 200 out of 10,000?
In general, it's about small bets for big gains, enduring loneliness, waiting for opportunities, and learning position management. As long as you are not cursed, you will always have opportunities. Opportunities are for those who think. Relying purely on luck, whatever you earn will be lost again, ultimately returning to square one.
Many people have misconceptions about trading, such as thinking that small funds should trade short-term to grow their capital—this is a complete misconception. This kind of thinking tries to exchange time for space, aiming to get rich overnight. Small funds should actually trade medium to long-term to achieve greater returns. Remember, the smaller the funds, the more you should trade long-term, relying on compound interest to grow, rather than just aiming for meager short-term profits.
First, honestly accumulate coins, hold onto the spot for 3-10 years. Accumulate against the benchmark. There is no one who will not become wealthy. What benchmark is the best in the crypto circle? Anyone in the crypto circle knows it, no need to choose.
Second, when you have a certain amount of capital.
Once you have a certain amount of capital, we indeed touch contracts less, because I fear you can't resist wanting to make a fortune. This idea is good, but also very dangerous. Remember, we only use the money we earn to make more money, and we pursue stability. Stability is not absolutely 100%, but it is relative to our overall profit over a period of time.
This is spot trading, capital management.
▼ 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 over $1 million. If there are many opportunities, I will invest more; if there are few opportunities, I will invest less.
I am lucky to earn over 10 million RMB in a year, which is quite enough. In the event of bad luck, the futures account may get liquidated, but it’s okay; the gains from the spot account can cover the losses in the futures account. If you lose, can the spot account really not earn a penny in a year? Our total capital is already substantial; it is impossible that we can't earn even this little.
You can’t make money but can’t lose money. So I haven’t been liquidated for a long time, and I often extract a quarter or fifth of my profits for separate savings. Even if I get liquidated, I still have a portion of profits retained.
As an ordinary person, my 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. If you lose, make up for it with the profits from the spot. If after ten or eight tries you still haven’t found the way, don’t play anymore; this field may not be suitable for you.
