From basic operations to core ideas, it’s all valuable information, especially recommended for those with weaker fundamentals. Next, we will delve into some key content:
1. Methods for small capital accumulation.
2. High capital practical stability and profit.
3. Core logic of cryptocurrency investment.
Deep in the fan circle, I learned that many ordinary people in the crypto world, even students, are eager to invest profitably. However, many people do not truly understand how to invest in the crypto space.
First, it is important to clarify that investing in digital currencies is financial investment; our goal is to achieve continuous profitability and economic doubling within a certain period. If you always expect to get rich overnight and constantly watch ups and downs, that’s no different from gambling.
In addition to waiting for opportunities, trading also requires the ability to recognize the size of opportunities. You cannot always have small positions or always have large positions; normally, you can test the waters with a small position, and when a big opportunity comes, increase your position.
For example, rolling positions is a strategy that can only be operated when a big opportunity arises. You cannot operate frequently; missing one time is okay because you only need to succeed a few times in your lifetime to turn from nothing to millions, or even tens of millions, enough for an ordinary person to join the ranks of the rich.
1. Rolling positions, applicability, small and medium capital.
Assuming you only have 1,000 today, and Bitcoin is currently valued at 30,000, you believe Bitcoin is about to rise. If you buy in with 1,000 and it rises to 36,000, you make 200 dollars. Because you only used 1,000, the increase was two-fold for you to earn 200 dollars.
Sometimes it’s okay to earn a little money with stable bloggers, but if you want to get rich quickly, then you need to consider contracts.
Assuming you also believe Bitcoin will increase by 20% * 5, your 1,000 dollars could turn into 1,000 dollars.
However, contracts are not something to be played with casually. There are methods for high risk and low investment.
In fact, rolling positions only requires attention to these points:
1: Sufficient patience; the profits from rolling positions are immense. As long as you can succeed a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you should not roll positions lightly and must find high-certainty opportunities.
2: High-certainty opportunities refer to when the price experiences a sharp drop and then continues to oscillate within a certain range before breaking upward. At this point, the probability of following the trend is very high, and you should enter at the point of trend reversal.
3: Have patience, wait for opportunities; even if there is only one opportunity in a month or a few months, when the opportunity arises, you must seize it.
▼ Rolling Position Risk
When it comes to rolling position strategies, many people feel there is a risk. In fact, I tell you, the risk is very low, much lower than the risks you face in futures trading.
Assuming you only have 50,000 and want to start with this capital. First, this 50,000 should be your profit. If you are still in a loss, you should not continue.
If you enter Bitcoin at a price of 10,000 and set 10x leverage using isolated margin mode, only opening a position of 10%, it is equivalent to using only 5,000 as collateral, which actually corresponds to 1x leverage. Set a 2% stop-loss; if you hit the stop-loss, you will only lose 2%, which is a loss of 1,000 dollars. How do those who get liquidated get liquidated? Even if you get liquidated, you would only lose a maximum of 5,000, not everything.
Assuming Bitcoin rises to 11,000, you continue to open 10% of your total capital, also setting a 2% stop-loss. If you hit the stop-loss, you can still earn 8%. Where is the risk? Isn’t the risk very high? And so on...
If Bitcoin rises to 15,000 and you successfully increase your position, during this 50% market movement, you should be able to earn about 200,000. Capturing two such market movements would be around 1,000,000.
There is fundamentally no compound interest; 100 times is made by 2 times 10 times, 3 times 5 times, and 4 times 3 times, not by compounding 10% or 20% every day or month. That’s unrealistic.
This content not only includes operational logic but also contains the core principles of trading—position management. As long as you understand position management, it is basically impossible to lose everything.
This is just an example; the general idea is like this. Specific details still need to be thought through.
The concept of rolling positions itself has no risk; not only is there no risk, but it is also one of the most correct approaches to futures trading. The risk lies with leverage.
10x leverage can be rolled, 1x can also be; I usually use two or three times. Capturing twice isn’t that the same as dozens of times in returns? At worst, you can use 0.x leverage; how does that relate to rolling positions? This is actually a matter of your own choice of leverage. I have never said you should operate with high leverage.
Moreover, I have always emphasized that in the crypto space, only invest one-fifth of your money, while only one-tenth of your cash should be used to play futures. At this time, the futures capital only accounts for 2% of your total capital, while futures only use two or three times leverage, and only trade Bitcoin. This effectively lowers the risk to an extremely low level.
Would you feel heartbroken if 200 from 10,000 was lost?
In summary, small investments for big returns, endure solitude, wait for opportunities, and learn position management. If you are not a jinx, you will always have opportunities. Opportunities are for those who think. Relying purely on luck, whatever you earn will be returned, ultimately returning to the starting point.
Many people have misconceptions about trading; for example, small funds should do short-term trading to expand capital, which is a complete misunderstanding. This kind of thinking attempts to exchange time for space, trying to get rich overnight. Small funds should do medium to long-term trades to achieve greater returns. Always remember that the smaller the capital, the more you should engage in long-term trading, relying on compounding to grow, not just for meager short-term profits.
Having been through the rain, I want to help those who are new to the market and avoid the biggest risks for everyone!!!
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