The reason rolling positions can be violent is that it leverages the exponential growth of 'compound interest + leverage'.
Every time you close a position and reinvest fully, it resets the margin, turning profits into new principal and continuously amplifying returns.
The essential difference between rolling positions and adding to open profits.
When BTC rises from 50,000 to 100,000:
Ordinary investors 'add to open profits': 325,000 (including 50,000 principal)
Top hunters 'rolling positions': 5,120,000 (with only 5,000 principal)
The three major death traps of rolling positions:
Misjudging the trend: Rolling positions are only suitable for one-sided markets; in a choppy market, you will be repeatedly harvested.
Excessive leverage: With 10x leverage, if there is a 10% reverse fluctuation, it goes directly to zero.
Loss of emotional control: Being greedy and not taking profits when in profit, and stubbornly holding on without cutting losses when in loss.
Best timing for rolling positions:
Breaking through key resistance levels
Before major positive news lands
When the market is in extreme fear/greed
Practical skills for rolling positions:
"3-5% stop-loss iron rule": A hard stop-loss must be set every time a position is opened, otherwise, one mistake will lead to total loss.
"50% profit drawdown to take profit": For example, if you earn 1,000,000, forcibly close the position when it draws down to 500,000.
"Tiered leverage increase":
Initial 5x leverage test
Increase to 10x after trend confirmation
In extreme markets, it can be temporarily increased to 15x
The 3 types of coins most suitable for rolling positions:
BTC/ETH
Leading coins in new sectors
Small-cap high-control coins
My rolling position trading record: Started with 30,000 in 2023, achieved seven figures through seven rounds of rolling positions, and am now positioning for the next hundredfold coin.
pepe sui doge
