In the cryptocurrency world, 90% of losses come from frequent trading!!!
But true top players achieve exponential asset growth through "rolling positions."
What is rolling positions?
Rolling positions means letting profits run, rather than hastily cashing out.
Ordinary players: Run after making 10%, then miss out on big trends.
Rolling position players: Increase positions with floating profits, making trends work for you.
Core Logic of Rolling Positions
Trend is King: Only roll positions in a bull market or strong trend; it doesn't apply in a sideways market.
Increase Positions with Floating Profits: Use profits to bet on larger profits, rather than risking principal.
Move Stop Loss Up: As profits grow, gradually raise the stop-loss level to lock in profits.
Wrong rolling positions = gambling; correct rolling positions = compound interest machine.
Practical Skills for Rolling Positions
(1) Confirm the trend before taking action
(2) Pyramid positioning method
Initial position: 20%-30% of funds for testing
Trend continuation: Use profits to gradually increase positions
Final position should not exceed 50% of total funds
(3) Dynamic profit-taking, let profits fly
Break below the 10-day moving average? Reduce position by 50%
Break below the 20-day moving average? Liquidate
Volume surge with stagnation? Take profits in batches
Remember: You won't go bankrupt from taking profits, but you will go to zero from greed.
4. Fatal Traps of Rolling Positions
Rolling against the trend: Averaging down in a downtrend, losing more as you roll (typical: holding onto contracts)
Excessive leverage: Rolling positions ≠ going all in; high leverage can accelerate liquidation
Emotional trading: FOMO leads to full positions, panic leads to cutting losses
5. The Highest Realm of Rolling Positions: Rule by Doing Nothing
After establishing a position, look at the market less and trade less
Let the market move on its own; you only need to follow the trend
80% of profits come from 20% of the time; endure loneliness to maintain prosperity
(If you keep making small profits in a bull market but miss out on major trends, perhaps you should learn the "rolling position mindset")
