Contract trading is like a double-edged sword; wield it well and it can double your wealth, wield it poorly and you may lose everything. Why do most contract players end up being liquidated? The answer is simple: they treat contracts as gambling tools, while true winners play a game called 'rolling positions'.

Rolling positions are not frequent trading, nor are they about gambling on luck; they are a capital management strategy based on market rules, patience, and discipline. In simple terms, it is about capturing a few major trends, leveraging to amplify profits, and then rolling the profits into the next trade for gradual capital growth.

Rolling positions are definitely not all-in; they require deep insights into the market, knowing when to decisively act at the right moment, while strictly controlling risks.

Why do most people end up liquidated when trading contracts? Because they fall into the following two fatal misconceptions:

Treating contracts as a cash machine, trading frequently every day.
Many newcomers dive headfirst into the contract market, eager to trade several times a day, thinking that frequent trading will lead to quick wealth. The truth is: in the cryptocurrency market, capturing 2-3 major trends a year is enough. Frequent trading not only increases the probability of errors but can also wear you down with trading fees and emotional fluctuations.

Not understanding stop-loss; one mistake leads to total loss. Trading without a stop-loss is like driving a car without brakes; sooner or later, it will crash and shatter. One mistake could wipe out your capital, whereas a reasonable stop-loss can help you survive longer, waiting for the next opportunity.

In my opinion, true rolling positions follow a core principle: let profits run and cut losses timely. They understand market rules deeply and know when to be greedy and when to be fearful.

Here are several key operating principles for rolling positions:
Seize the opportunity in extreme market conditions; the cryptocurrency world has never lacked severe fluctuations. After a major crash, there is often a rebound, and after a long period of consolidation, significant movements usually brew. When market sentiment is extremely euphoric or fearful, it’s your entry point. Remember Buffett's golden quote: Be greedy when others are fearful, and be fearful when others are greedy.

A scientific capital management formula: After the first position is profitable, withdraw the principal: use profits to continue playing, while protecting the principal's safety.

Each time you increase your position, do not exceed 20% of the total capital: avoid excessive leverage that leads to total loss.

Keep the maximum drawdown within 30%: strictly set stop-loss orders to ensure capital safety.

Patiently wait and decisively act; never chase small fluctuations. Patiently wait for the market to give clear signals. A successful rolling position may only take a month or even a few days, but the premise is that you must survive until the opportunity arises.

The cryptocurrency market is never short of opportunities; what it lacks is the capital to survive until the opportunity arrives. If you are still trading frequently, blindly leveraging, or being led by market sentiment, it might be time to stop and ask yourself.

Give up the fantasy of getting rich overnight; treat contract trading as a long-term capital management game. Learn to have respect for the market and adhere to its rules.

Before each trade, clarify your entry point, stop-loss point, and target profit. Strictly execute the plan and do not let emotions dictate your actions.

After each trade, review your actions, identify problems, and optimize your strategy. Winners in the cryptocurrency market are not born; they grow through constant trial and error and summarizing their experiences.

The cryptocurrency market is a place full of opportunities and traps. Contract trading is not a beast to be feared, but it requires sufficient patience, discipline, and self-control.

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