Do you know why 90% of contract traders go bankrupt
while top traders use 'rolling positions' to earn 90% of the profits in a bull market?
The 'all-in' approach of ordinary people and the 'rolling positions' of professional traders are completely two different dimensions of operation.
Last year, I witnessed a small account of 2000 USD precisely rolling positions
making 500,000 USD in a one-sided market, while retail investors who heavily invested all-in had already gone to zero...
Real masters of rolling positions are solving a math problem: "Using 10 times 1% stop-loss to exchange for 1 time 100% trend".
Behind this lies three counterintuitive laws:
Initial position must be small enough to be 'imperceptible'
Only increase positions at 'high certainty nodes'
Profits must be withdrawn
2. Three fatal misconceptions about rolling positions
Misconception 1: "Floating profit addition = adding casually"
Truth: Every addition is an independent trade and must recalculate the stop-loss point.
Misconception 2: "The higher the leverage, the faster the profit"
Bitter lessons: Leverage above 5 times significantly reduces the margin for error; 3 times is the golden value for rolling positions.
Misconception 3: "One rolling position can make you rich"
Core mindset: Rolling positions is a game of 'exchanging time for space'; it requires 3-5 trials and errors to capture the big trend.
My practical notes on rolling positions
Position control tool:
Each addition amount = (Current floating profit × 30%) / Stop-loss range
Example: Floating profit 1000 USD, stop-loss distance 2%, then the addition amount = (1000 × 0.3) / 0.02 = 1500 USD*
The art of taking profits:
First target reduce position by 50%
Second target withdraw principal
Remaining position uses trailing stop to chase the trend
Death alarm (close immediately upon occurrence):
Volatility suddenly increases but price stagnates
The number of open contracts on the exchange drops by more than 20%
5. A message for those who want to truly master rolling positions
If you are still using the cycle model of 'open order - pray - go bankrupt', it’s time to establish a systematic trading mindset.
"In the contract market, knowledge disparity is the biggest leverage"
Remember: Never play contracts with money you cannot afford to lose; true experts are running with profits...