Once you have 1 million in capital, you will find that life seems completely different. Even if you don't use leverage, if the spot price rises by 20%, you'll gain 200,000, which is already the income ceiling for most people in a year.
When you can increase your capital from tens of thousands to 100,000, you'll grasp some ideas and logic to make big money. By then, your mindset will also calm down a lot, and from then on, it will just be copy and paste.
Don't always talk about millions or billions; start from your own situation. Bragging only makes the braggers feel good. Trading requires the ability to recognize the size of opportunities; you can't always be lightly leveraged nor heavily leveraged. Normally, play with small positions, and when a big opportunity arises, bring out the heavy artillery.
For instance, rolling positions can only be done when there is a big opportunity; you can't keep rolling. Missing out is fine because you only need to roll successfully three or four times in your life to go from zero to tens of millions, which is enough for an ordinary person to join the ranks of the wealthy.
The concept of rolling positions itself is not risky; it's one of the correct approaches to futures trading. The risk lies in leverage. You can roll with 10x leverage, and you can also do it with 1x. I generally use two to three times leverage; capturing opportunities twice can yield hundreds of times in profit. If not, you can use a fraction of a leverage; this has nothing to do with rolling. This is clearly a matter of your own leverage choices; I never said to use high leverage to trade.
I have always emphasized that in trading circles, you should only invest one-fifth of your money, and only one-tenth of your funds in spot trading for futures. At this time, the futures capital only accounts for 2% of your total funds, and futures should use two to three times leverage, only trading Bitcoin, effectively minimizing risks.
If you lose 20,000 out of 1 million, will you be upset?
If you're always leveraged, it loses its meaning. Many say rolling positions is risky, that profit is just good luck. I’m not saying this to convince you; convincing others is meaningless. I just hope there are like-minded traders who can play together.
Currently, there is no filtering mechanism, and there are always harsh voices that interfere with the recognition of those who want to see.
Trading is not full of risks; risks can be mitigated through fund management. For instance, I have a futures account of $200,000 and a spot account that varies randomly from $300,000 to $1,000,000+. If opportunities are abundant, I’ll invest more; if not, I’ll invest less.
With good luck, you can earn over 10 million RMB in a year, which is plenty. In the worst-case scenario, your futures account may be liquidated, but it doesn't matter; spot gains can offset futures losses. Once offset, you can dive back in. Is it really that you can't earn a penny in spot trading in a year? I'm not that bad yet.
You may not make money, but you can't afford to lose. I've been liquidated many times, and in futures, I often make profits, saving a quarter to a fifth separately. Even if profits are exposed, a part will still be retained.
As an ordinary person, my advice is to invest one-tenth of your spot position in futures. For example, if you have 300,000, take 30,000 to trade. After exposure, use the profits from spot trading to reinvest. After experiencing liquidation ten times, you’ll surely grasp some insights. If you haven’t figured it out yet, don’t play; this field may not suit you.
Currently, only the following three situations are suitable for rolling positions:
Choosing a direction after long-term sideways volatility reaches a new low.
2 - Buying the dip after a big drop in a bull market
Breaking through significant resistance/support levels on a weekly basis.
In general, you only have a good chance in the three situations above; all other opportunities should be abandoned.
General opinion:
Define rolling positions: In a trending market, after making significant profits with leverage, due to passive declines in overall leverage, to achieve compound profit effects, increase trend positions at the right time. This process of increasing positions is called rolling.
Here are the methods for rolling positions:
Adding to positions with unrealized profits: After gaining unrealized profits, consider adding to your position. However, ensure that the holding cost has been reduced to minimize the risk of loss. This does not mean blindly adding positions after gaining profits, but rather doing so at the right moment.
Base positions + rolling operations: Divide funds into several parts, keep a portion of the base position untouched, and use another part for high sell-low buy operations. The specific ratio can be chosen based on personal risk preference and fund size. For example, you can choose to roll with half the position, 30% as base, or 70% as base, etc. This operation can reduce holding costs and increase profits.
In my opinion, there are mainly two types of 'appropriate timing': 1. Increase positions during a converging breakout in a trend, and reduce positions quickly after the breakout to capture the main upward wave.
In a trend, increase trend positions during pullbacks, such as buying in batches when the moving average is in a pullback.
There are many specific ways to operate rolling positions, the most common being to adjust holdings. Traders can gradually decrease or increase their positions based on market changes to achieve profit. Traders can also use tools such as leverage to amplify returns, but this also increases risk.
A few points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you should not roll easily; you need to find high-certainty and high-probability opportunities.
What is a sure-win opportunity? It's when the price drops sharply, starts to consolidate, and then suddenly surges upwards. At such times, the trend is likely to reverse; you need to hop on quickly and not miss a good opportunity.
This market only has 10% of people who can make money because it's destined to be a zero-sum game.
You can only earn money during 20% of the bull market time; the rest of the time will eliminate those without investment logic and patience.
Always maintain a mindset of bearing a 30%-50% drawdown to laugh till the end; otherwise, the process will be a torment for you.
40% of retail investors may just end at the beginning; there are more pitfalls in this circle than you can imagine.
At least 50% of people in this market choose to play contracts; most will ultimately gain nothing and lose everything. Remember, contracts are just gambling.
In a bull market trend, over 60% of people playing spot trading can earn, and only those who can hold steady throughout the bull market cycle will be the final winners.
It is estimated that 70% of people continuously recharge without ever withdrawing funds, and the circle is more brutal than you think.
80% of people cannot return to the past due to the wealth effect of this circle, just like being addicted to drugs.
90% of people ultimately are just passersby in this market, yet everyone thinks they are the chosen ones.
In the end, #BTC will reach $1 million, I will always believe this.
Only roll long positions;
4. Setting appropriate stop-loss and take-profit levels is very important.
Rolling short positions is a high-risk strategy; market volatility can lead to significant losses. When entering a trade, we should set a reasonable stop-loss level. Once the market trend goes against expectations, exit promptly to control losses. It's equally important to set appropriate profit-taking levels to protect gains. This ensures we secure enough profit before a market reversal.
Reasonable fund management is also key to steady profitability.
When executing rolling short positions, we should allocate funds reasonably and not invest all funds into a single trade. Diversified investment can reduce risk and enhance overall stability. We should also follow risk control principles and not abuse leverage to avoid greater losses.
Timely tracking of market dynamics is also key to profitability.
Market conditions are constantly changing; we should maintain sensitivity to the market and adjust strategies promptly. Timely understanding and learning relevant technical indicators and trading tools can help us better analyze market trends and improve prediction accuracy.
Rolling short positions in the cryptocurrency market can be a strategy for making profits, but it needs to be done cautiously. By accurately predicting market trends, setting appropriate stop-loss and take-profit levels, managing funds wisely, and keeping up with market dynamics, we can steadily earn profits in the market.
Of course, if it's Eth.
In cryptocurrency, you can also try forced rolling methods by staking, borrowing, or investing in liquidity pools to obtain safer returns, and specific coins should be analyzed to avoid liquidity issues.
How to grow small funds
Many people have misconceptions about trading, such as small funds should trade short-term to grow big. This is a complete misconception; this kind of thinking is just trying to exchange time for space, hoping to get rich overnight. Small funds should focus on medium to long-term trades.
- Is one piece of paper thin enough? If a piece of paper is folded 27 times, it becomes 13 kilometers thick. If folded 10 more times, it becomes 37 times, thicker than the earth. If folded 105 times, the entire universe won't contain it.
If you have 30,000 in capital, you should think about how to triple it in one wave, then triple it again in the next wave. … This way, you'll have four to five hundred thousand. Rather than thinking about making 10% today and 20% tomorrow… this will eventually lead you to ruin.
Coin trading advice:
1. Don’t easily sell bull coins; prioritize bull coins. Take a halfway approach, combining hot and strong coins, balancing investment and speculation.
The most important thing for a trader is the ability to adapt during trading.
3. Qualitative analysis is essential. Qualitative analysis on a large cycle, selecting coins on a weekly basis, verifying on a monthly basis, and tracking on a daily basis.
4. Strictly adhere to methods; use Bollinger Bands or any moving average you believe is feasible to analyze the market.
5. Skills are taught through ability; success relies on technical proficiency, repeating successful experiences, and making profit a habit. Consistent earnings are more important than one-time big profits.
No man is an island; a lone sail cannot sail far! In the trading circle, if you don't have a good circle and firsthand news, I suggest you follow me, and I can help you reach shore. Welcome to join the team!
