Once you have 1 million in capital, you’ll find that life seems different. Even if you don’t use leverage, a 20% increase in spot trading yields 200,000; 200,000 is already the annual income ceiling for most people.
Moreover, when you can grow from several thousand to 100,000, you will grasp some ways and logic to make big money. At that point, your mindset will stabilize significantly, and from then on, it’s just about copying and pasting.
Don't always think in millions or hundreds of millions. Start from your actual situation. Bragging only makes one feel good. Trading requires the ability to identify opportunities' sizes; you can't always trade small or large positions. Usually, trade small, and when a big opportunity arises, bring out the big guns.
For instance, rolling positions can only be executed when significant opportunities arise; you can't keep rolling. Missing out is fine because you only need to roll successfully three or four times in your life to turn from zero to tens of millions. Tens of millions are enough for an ordinary person to transition into the ranks of the wealthy.
First, we need to know under what circumstances rolling positions are suitable:
Currently, only the following three situations are suitable for rolling positions:
1► Choose a direction after a long period of horizontal volatility at new lows.
2► Buy on the dip after a significant drop in a bull market.
3► Breakthrough of significant resistance/support levels on weekly charts.
In general, only the above three situations have a relatively high chance of winning; all other opportunities should be abandoned.
Common viewpoint:
Let's define rolling positions: In a trending market, after significantly profiting using leverage, the total leverage passively decreases. To achieve a compounding profit effect, increase the trending position at the right time. This process of increasing positions is called rolling.
Here are the methods for rolling positions:
● Adding positions with floating profits: After achieving floating profits, consider adding positions. However, before adding, ensure that your holding costs have been reduced to minimize the risk of losses. This does not mean blindly increasing positions after making a profit, but rather doing so at the right moment.
● Base position + T+0 rolling position operation: Divide your funds into several parts, keeping a portion as a base position and using another portion for high sell-low buy operations. The specific ratio can be chosen based on individual risk preference and capital scale. For example, you can choose to roll with half your position, or 30% base position rolling, or 70% base position rolling, and so on. This operation can reduce holding costs and increase profits.
The definition of 'the right time' mainly has two types, in my view:
1. Increase positions during convergence breakout trends, quickly reduce the added positions after breaking through to catch the main upward wave.
2. Increase trending positions during corrective trends, such as buying in batches during moving average pullbacks.
There are various specific operational methods for rolling positions, the most common being through adjusting holdings. Traders can gradually reduce or increase their holdings according to market changes to achieve profitability. Traders can also use trading tools like leverage to amplify returns but this also increases risk.
Here are a few points to note about rolling positions:
1. Enough patience; the profits from rolling can be enormous. As long as you manage to roll successfully a few times, you can earn tens of millions or even hundreds of millions. So, you can't roll easily; look for high certainty, almost guaranteed opportunities.
2. What constitutes a nearly guaranteed opportunity? It is the kind where the price plummets, then starts to consolidate, and suddenly shoots up. At such times, the trend is likely to reverse, and you need to get on board quickly and not miss the good timing. 10%-100% version.
1⃣ Only 10% of people in this market can make money because it's destined to be a zero-sum game.
2⃣ You can only earn money during 20% of bull market time; the rest of the time will eliminate those without investment logic and patience.
Always maintain a mindset to withstand a 30%-50% drawdown to laugh last; otherwise, the process will be a torment for you.
4⃣ 40% of the retail traders might end up quitting right from the start; there are more pitfalls in this circle than you imagine.
At least 50% of people in this market will choose to trade contracts, and most will end up with nothing and lose everything. Remember, contracts are gambling.
6⃣ In a bull market trend, over 60% of those trading spot can earn, and being able to hold through the entire bull market cycle is what makes the final winners.
70% of people are expected to keep recharging without ever withdrawing funds; the crypto circle is far more brutal than you think.
80% of people are unable to return to the past because of the wealth effect in this circle, just like being addicted to drugs.
90% of people are ultimately just passing through this market, yet everyone believes they are the chosen one.
Finally, #BTC will 100% reach 1 million USD. Always believe in this.
3. Only roll long positions;
4. Setting appropriate stop-loss and take-profit points is very important.
Rolling short positions is a high-risk strategy; market fluctuations can lead to significant losses. When entering trades, we should set a reasonable stop-loss point. If the market moves against our expectations, we should cut losses in a timely manner to control losses. It is equally important to set appropriate take-profit points to protect profits. This ensures that we gain enough profits before the market reverses.
5. Reasonable fund management is also key to stable profits.
When engaging in rolling short operations, we should allocate funds reasonably and not invest all our funds into a single trade. Diversifying investments can reduce risks and improve overall stability. We should also follow risk control principles and avoid abusing leverage to prevent greater losses.
6. Timely tracking of market dynamics is also key to profitability.
The market is constantly changing, and we should maintain sensitivity to the market, adjusting our strategies in a timely manner. Keeping updated 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 to earn profits, but it requires cautious operation. By accurately predicting market trends, setting appropriate stop-loss and take-profit points, managing funds wisely, and tracking market dynamics in a timely manner, we can steadily gain profits in the market.
Of course, if it’s a cryptocurrency like Ethereum, you can also try forced rolling positions through staking, lending, or investing in liquidity pools to obtain safer returns. Specific coins should be analyzed individually to avoid liquidity issues.
▼ Rolling Position Risks
Let's talk about rolling strategies. Many people think this carries risk. I can tell you that the risk is very low, much lower than the logic of opening futures positions you are used to.
If you only have 50,000, how do you start with 50,000? First, this 50,000 has to be your profit. If you're still losing, then don't look anymore.
If you open a position at 10,000 for Bitcoin, set your leverage at 10x, and use a margin of only 10%, you are effectively using 1x leverage with a 2% stop loss. If you hit the stop loss, you only lose 2%, just 2%, right? 1,000 USDT. How do those who blow up their accounts do it? Even if you blow up your account, isn't it just a loss of 5,000? How can you lose everything?
If you're right and Bitcoin rises to 11,000, you continue to open 10% of your total funds, also setting a 2% stop loss. If you hit the stop loss, you still make 8%. Where's the risk? Didn't they say the risk is high? Continuing in this manner...
If Bitcoin rises to 15,000 and you successfully add positions, in this wave of 50% in the market, you should earn around 200,000. Grabbing two such waves means around 1,000,000.
Compound interest does not exist. A 100x return is made through two 10x trades, three 5x trades, or four 3x trades, not through daily or monthly 10% or 20% compounding. That’s nonsense.
This content not only contains operational logic but also embodies the core mindset of trading, which is position management. As long as you understand position management, you can't lose everything.
This is just an example; the general idea is like this, and specific details still need to be pondered more.
The concept of rolling positions itself does not carry risk; not only is it risk-free, but it is also one of the most correct mindsets for trading futures. The risk lies in leverage. You can roll with 10x leverage or even 1x; I usually use two to three times leverage. Grabbing two opportunities yields similar returns of several tens of times. If nothing else, you can use 0.x leverage. What does this have to do with rolling? This is clearly a matter of your own choice of leverage; I have never said to use high leverage to operate.
Moreover, I have always emphasized investing only one-fifth of your funds in the crypto circle, and simultaneously only investing one-tenth of your spot funds to play futures. At this time, the funds in futures only account for 2% of your total funds, and futures use only two to three times leverage. Additionally, only trade Bitcoin, which can be said to reduce risk to an extremely low level.
Would you feel pained if you lost 20,000 from 1,000,000?
It's always boring to argue. There are always people saying that rolling positions carries high risks and that making money is just a matter of luck. I'm not saying this to persuade you or others; that's pointless. I just hope that those with similar trading philosophies can play together.
Currently, there is no filtering mechanism; there will always be discordant voices that interfere with those who want to see.
▼ Capital Management
Trading is not inherently full of risks; risks can be mitigated through fund management. For example, I have a futures account of 200,000 USDT and a spot account ranging from 300,000 to over 1,000,000 USDT. When opportunities are high, I invest more; when there are no opportunities, I invest less.
With good luck, you can earn over 10 million RMB in a year; that's more than enough. With bad luck, the worst-case scenario is that your futures account gets wiped out. It doesn't matter; spot profits can compensate for futures losses. Once compensated, you can dive back in. Can't you at least earn a penny in spot trading in a year? I haven’t fallen that low yet.
You can not make money, but you cannot lose money. I have already blown up my account for a long time. Moreover, I often save one-fourth to one-fifth of the profits I make from futures separately. Even if I blow up, I will still retain part of the profits.
As an ordinary person, my personal advice is to use one-tenth of your spot position to play futures. For example, if you have 300,000, use 30,000 to play. If exposed, put the profits from the spot back in. After blowing up ten or eight times, you should be able to grasp some insights. If you still can't grasp it, then don't play; this field isn't suitable for you.
▼ How small funds can grow larger.
Many people have misconceptions about trading. For example, they think small funds should do short-term trading to increase capital. This is a complete misconception; this kind of thinking is simply trying to exchange time for space, hoping for a windfall. Small funds should be focused on mid to long-term trading to grow larger.
Is one piece of paper thin enough? If a piece of paper is folded 27 times, it is 13 kilometers thick. If folded 10 more times to 37 times, it would be thicker than the Earth. If folded 105 times, the entire universe would not be able to contain it.
If you have 30,000 in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... this way, you’ll have four to five hundred thousand. Instead of thinking about earning 10% today and 20% tomorrow... this will eventually lead to your downfall.
I believe many crypto friends have experienced the helplessness of being fully invested and trapped when the market rises, feeling disconnected from the action, and being unable to cut losses. These can be avoided through position management.
No more nonsense, let's get straight to the practical stuff:
Position management gives everyone the current advice:
For example, you take out 30,000 USDT to trade contracts.
My suggestion is to divide it into three parts, each 10,000 USDT.
Each time I open a position, I use one of those parts, a fixed 10,000 USDT.
The maximum leverage for Bitcoin should not exceed 10 times, and for altcoins, it should not exceed 5 times.
If you lose money
For example, if you lose 1,000 USDT, just add 1,000 USDT from outside.
If you earn 1,000 USDT, just withdraw that 1,000 USDT.
Ensure that you say that in the recent period
You can ensure that each time you open a position, it is at a fixed level of 10,000 USDT.
until you earn 60,000 USDT using this method with your 30,000 USDT.
Raise each of your positions to 20,000 USDT.
Doing it this way has its benefits:
Point 1: Use a divided position + low leverage to avoid getting wiped out by the exchange's spikes.
Point 2, avoid getting caught up in such problems. If one day you get carried away and lose everything, then at most you lose 1/3, and the remaining part can give you a buffer.
Point 3: Maintain a fixed position. Whether you are losing or making profits, you can maintain a relatively calm mindset, which can help stabilize your mentality.
My habit when opening positions is to fill them completely at once.
For example, if you have 10,000 USDT, a single market movement on one coin means taking a full position.
Filling a position means using 1/3 of the divided funds; altcoins at 5x and Bitcoin at 10x, thus entering and exiting fully.
My entry is based on my precise and accurate grasp of the entry point.
If you always use stop losses and low leverage, it is impossible to blow up your account.
My logic is not to look at any indicators, only focus on position profits and losses.
For example, if my total scale earns X%, I add one position; if my total scale loses Y%, I will stop loss or exit completely.
All operations are only related to my position profits and losses; the candlestick chart only serves to indicate the initial direction of my positions.
As for those indicators, their original purpose is to reflect the profit and loss situation of the positions that discovered those indicators.
In fact, my approach is essentially an abstract indicator, specifically for the master Li Fumo. I don't tell ordinary people about it.
The martial arts secrets have been shared with you; whether you can make a name for yourself in the market depends on you.
Everyone should save this method. Watch it a few more times. If you find it useful, feel free to share it with more people in the crypto community. Follow me to learn more practical knowledge about the crypto world. Having weathered the rain, I'm willing to shelter the new traders! Follow me, and let's walk the path of the crypto world together!
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