If you plan to invest in the cryptocurrency circle, please take a few minutes to read my answer word for word, as it could save your life and that of your family.
Thousands of originally happy families end up broken because of pursuing the unattainable dream of making a fortune in the cryptocurrency circle.
I think if I really want to continue on the trading path, I still need to study diligently; besides understanding the basics, I should also analyze news and study technical indicators.
If you do not conduct in-depth research and reasonably plan your money management, your funds will eventually be worn away. In the end, as a completely rootless retail investor, you will only joyfully enter and leave in silence.
There is a reason why some famous technical indicators have endured through time.
The divergence signals, KDJ's overbought and oversold signals, support and resistance signals, etc., although they cannot guarantee profit, can allow you to quantitatively analyze based on a more mature model, giving investors a basic direction.
In the cryptocurrency circle, there’s only one way to turn 6,000 into 1,000,000 in capital, and that is through rolling positions.
Once you have 1,000,000 in capital, you will find that your whole life seems different. Even if you don’t use leverage, a 20% increase in spot will give you 200,000. 200,000 is already the ceiling of annual income for most people.
Moreover, when you can grow from several thousand to 100,000, you will grasp some ideas and logic for making big money. At this point, your mindset will also calm down a lot, and from then on, it’s just about copying and pasting.
Don’t always talk about millions or a hundred million; start from your actual situation. Bragging only makes the cow comfortable. Trading requires the ability to identify the size of opportunities; you cannot always play light positions or heavy positions. Usually, play small positions, and when a big opportunity comes, then bring out your big guns.
For rolling positions, you should only operate when a big opportunity arises. You can’t keep rolling endlessly; it’s okay to miss some. Because in your lifetime, you only need to roll successfully three or four times to go from zero to tens of millions, which is enough for an ordinary person to upgrade to 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► Long-term horizontal volatility at new lows before choosing a direction
2► Buying the dip after a big drop in the bull market
3► Breakthrough of major resistance/support levels on a weekly basis
Overall, only the above three situations have a relatively high chance of success; all other opportunities should be given up.
General viewpoint:
Let’s define rolling positions: in a trending market, using leverage.
After significant profits, due to the overall leverage passively decreasing, to achieve compound profit effects, increase trend positions at the right time. This process of increasing positions is called rolling positions.
Here are the methods for rolling positions:
● Adding positions to floating profits: After obtaining floating profits, consider adding positions. However, before adding, ensure that the holding cost has been reduced to minimize the risk of losses. This does not mean blindly adding positions after making profits but rather doing so at the right time.
● Base position + T trading rolling position operation: Divide funds into several parts, leaving one part of the base position untouched, while using another part for high selling and low buying operations. Specific ratios can be chosen based on personal risk preference and fund scale. For example, one can choose half a position for rolling T, three-tenths as a base position for rolling T, or seven-tenths as a base position for rolling T, etc. This operation can lower holding costs and increase returns.
In my definition of 'the right time', I believe there are mainly two situations.
1. Increase positions during convergence breakout trends; after breaking through, quickly reduce the added positions during the main upward wave.
2. Increase trend positions during pullbacks in trends, such as buying in batches during moving average pullbacks.
There are various specific ways to roll positions, with the most common being through position adjustments. Traders can gradually decrease or increase their position sizes according to market conditions to achieve profit. Traders can also use trading tools like leverage to amplify returns, but this also increases risks.
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 billions, so you cannot roll lightly. Look for high-certainty, nearly certain opportunities.
2. What is a nearly certain opportunity? It’s when prices plummet, start to consolidate, and then suddenly spike upwards. At such times, the trend is very likely to reverse, and you need to hop on quickly; don’t miss the good timing.
1⃣ Only 10% of people in this market can earn money because it is destined to be a zero-sum game.
2⃣ The money you can earn will only be generated during 20% of the bull market time; the rest of the time will weed out those who lack investment logic and patience.
3⃣ Always maintain a mindset to endure a 30%-50% drawdown to laugh last; otherwise, the process will be a torment for you.
4⃣ 40% of retail investors may end at the beginning; there are more traps in this circle than you think.
5⃣ At least 50% of people in this market will choose to trade contracts.
Most will end up with nothing and lose everything; remember that contracts are gambling.
6⃣ In a bull market trend, 60% of people playing spot can earn, and those who can hold steady throughout the entire bull market cycle are the final winners.
7⃣ It is expected that 70% of people are always recharging without ever withdrawing funds; the cryptocurrency circle is far more cruel than you think.
8⃣ 80% of people cannot return to the past due to the wealth effect of this circle, just like being addicted to drugs.
9⃣ 90% of people ultimately are just passersby in this market, but everyone thinks they are the chosen one.
Finally, #BTC will 100% reach 1,000,000 USD; always believe this.
3. Only roll long positions;
4. Setting appropriate stop-loss and take-profit points is very important.
Shorting while rolling positions is a high-risk strategy; market fluctuations can lead to huge losses. When entering a trade, we should set a reasonable stop-loss point. Once the market trend goes against expectations, promptly stop losses to control losses. Similarly, it is important to set appropriate take-profit points to protect profits. This ensures we gain enough profit before the market reverses.
5. Reasonable fund management is also the key to steady profits.
When engaging in rolling positions and shorting, 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 not misuse leverage to avoid greater losses.
6. Timely tracking of market dynamics is also key to profit.
Market conditions are constantly changing, and we should maintain sensitivity to the market, adjusting strategies promptly. Keeping up with and learning relevant technical indicators and trading tools can help us analyze market trends better and improve prediction accuracy.
Rolling positions and shorting in the cryptocurrency market can be a strategy for making profits, but it requires cautious operation. By accurately predicting market trends, setting appropriate stop-loss and take-profit points, managing funds reasonably, and promptly tracking market dynamics, we can steadily obtain profits in the market.
Of course, if it’s Eth
For this type of cryptocurrency, you can also try the forced rolling method, engaging in staking, lending, or investing in liquidity pools to achieve safer returns, and specific coins should also be analyzed to avoid liquidity issues.
▼ Rolling position risks
Let’s talk about rolling strategies. Many people think this is risky. I can tell you that the risk is very low, much lower than the logic of opening futures positions.
If you only have 50,000, how to start with 50,000? First, this 50,000 must be your profit. If you are still at a loss, don’t look anymore.
If you open a position at 10,000 in Bitcoin with a leverage of 10 times, using a cross-margin mode and only opening 10% of the position, that means only using 5,000 as margin. This is equivalent to 1x leverage, with a 2% stop-loss. If you hit the stop-loss, you only lose 2%, just 2%? 1,000 bucks. How do those who blow up their accounts do it? Even if you do blow up, it’s only a loss of 5,000, right? How can you lose everything?
If you are right, and Bitcoin rises to 11,000, you continue to open 10% of the total funds, also setting a 2% stop-loss. If you hit the stop-loss, you still earn 8%. Where’s the risk? Isn’t it said that the risk is huge? And so on...
If Bitcoin rises to 15,000, and you add positions smoothly, during this 50% market movement, you should be able to earn around 200,000. Capturing such movements twice can lead to around 1,000,000.
There is no compound interest at all. 100 times is earned through two 10 times, three 5 times, or four 3 times, not through a daily or monthly 10% or 20% compounding; that’s nonsense.
This content not only has operational logic but also contains the core internal skills of trading, position management. As long as you understand position management, you cannot lose everything.
This is just an example; the general idea is like this. The specific details still require you to ponder.
The concept of rolling positions itself has no risk; not only is there no risk, but it is also one of the correct thoughts in futures trading. The risk lies with leverage. You can roll with 10 times leverage or even 1 time; I usually use two to three times. Capturing two movements can yield dozens of times returns, right? At worst, you can use less than one times leverage. What does this have to do with rolling positions? This is clearly your own choice of leverage. I never said to operate with high leverage.
I have always emphasized that invest only one-fifth of your money in the cryptocurrency circle while only using one-tenth of your spot money to play futures. At this point, the funds for futures only account for 2% of your total funds, and futures should only use two to three times leverage, and only trade Bitcoin. This can be said to reduce risks to an extremely low level.
If you lose 20,000 from 1,000,000, will you feel painful?
Always using leverage is pointless. People keep saying rolling positions are risky, that making money is just luck; saying this is not to convince you. Convincing others is meaningless. I just hope that like-minded traders can play together.
Currently, there’s no filtering mechanism; there are always jarring voices that disturb the recognition of those who want to watch.
▼ Fund management
Trading is not filled with risks; risks can be mitigated through fund management. For instance, I have 200,000 in my futures account; my spot account ranges from 300,000 to over 1,000,000. When the opportunity is great, I invest more; when there’s no opportunity, I invest less.
With good luck, you can earn over ten million RMB in a year, which is more than enough. If luck is bad, the worst-case scenario is that your futures account blows up. It doesn’t matter; spot earnings can cover the losses from futures blowing up. Once compensated, you can reinvest. Is it possible that spot doesn’t earn a penny in a year? I’m not that bad.
It’s okay not to make money, but you cannot lose money. I’ve blown up my account a long time ago, and when I do make money in futures, I often withdraw one-fourth or one-fifth to keep separately. Even if I expose profits, a portion will still be retained.
As an ordinary person, my personal advice to you is to use one-tenth of your spot position to trade futures. For example, if you have 300,000, only use 30,000 for trading. If it gets exposed, reinvest the profits from spot trading. After you’ve blown up your account ten or eight times, you’ll surely grasp some inner workings. If you still haven’t figured it out, then don’t play; it’s not suitable for you.
▼ How to grow small funds
Many people have misconceptions about trading. For example, small funds should trade short-term to grow their capital; this is completely wrong. This kind of thinking is trying to exchange time for space, attempting to get rich overnight. Small funds should instead engage in medium to long-term trading to grow.
Is one sheet of paper thin enough? A sheet of paper folded 27 times 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 accommodate 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... then you will have four or five hundred thousand. Rather than thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.
I believe many cryptocurrency friends have experienced the helplessness of buying in fully and getting trapped, feeling disconnected when the market surges, and being unable to cut losses. These can be avoided through position management.
Without further ado, let’s get right to the point:
Current advice on position management:
For example, you take out 30,000 U to trade contracts.
Then my suggestion is to divide it into 3 parts, each part 10,000 U.
Use one share from each opening position, fixed at 10,000 U.
Bitcoin should not exceed 10 times, and altcoins should not exceed 5 times.
If you lose money
For example, if you lose 1,000 U, you should inject another 1,000 U from outside.
If you earn 1,000 U, you withdraw 1,000 U.
Make sure to say that in recent times
You can ensure that every position you open is fixed at 10,000 U.
Until you earn 60,000 with 30,000 U in this way.
Raise each of your positions to 20,000 U.
Doing it this way has the benefit that:
The first point is to split positions + low leverage to avoid needle spikes from exchanges, causing you to lose all your funds.
The second point is to avoid getting too high. One day, if you get too high and lose everything, the most you will lose is 1/3, and the rest can give you a buffer opportunity.
The third point is to maintain a fixed position; whether you are at a loss or profit, you can keep a relatively calm mindset, which can help stabilize your mentality.
My habit of opening positions is to fill them completely at once.
For example, 1 contract of 10,000 U, one market movement for one coin, is a full position trading out.
Full position is one-third of the split funds; altcoins at 5 times and Bitcoin at 10 times, this way is for full entry and exit.
My entry is based on a fine and accurate grasp of the opening price.
If you are all using stop-losses and low leverage, it’s impossible to blow up your account.
My logic is to not look at any indicators, only focus on the gains and losses of positions.
For example, if my total scale earns X%, I add one share to the position. If the total scale loses Y%, I either stop-loss completely or exit.
All operations are only related to my position gains and losses; the K line only serves as the initial direction for opening a position.
As for those indicators, their original role is to feedback on the position gains and losses of those who discovered these indicators.
In fact, my operation is essentially a kind of abstract indicator, as taught by the master, Livermore.
Special use; I won’t tell regular people.
The secret skills have been shared with everyone; whether you can become famous in the rivers and lakes depends on yourself.
Everyone must save these methods and watch them several times. Friends who find them useful can forward them to more coin traders around them. Follow me to learn more valuable information in the cryptocurrency circle. Having braved the rain, I’m willing to hold an umbrella for the retail investors! Follow me, let's walk forward together in the cryptocurrency circle!
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