When you have 1 million yuan in capital, you will find that your whole life seems to be different. Even if you do not use leverage, if the spot price increases by 20%, you will have 200,000 yuan. 200,000 yuan is already the annual income ceiling for most people.
And when you can make 100W from tens of thousands, you will also be able to grasp some ideas and logic of making big money. At this time, your mentality will be much calmer, and the rest of the time is just copy and paste.
Don't always boast about tens of millions or hundreds of millions. Start from your own actual situation. Bragging all the time will only make you feel good.
Trading requires the ability to identify the size of opportunities. You cannot always have a light position or a heavy position. Normally, just play with a small position, and when a big opportunity comes, then pull out your fucking Italian cannon.
For example, rolling positions can only be performed when a big opportunity comes. You can't roll positions all the time. It doesn't matter if you miss it, because you only need to roll positions successfully three or four times in your lifetime to go from 0 to tens of millions. Tens of millions are enough for an ordinary person to join the ranks of wealthy people.
A few points to note when rolling:
1. Be patient enough. The profit of rolling positions is huge. 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 cannot roll easily. You must look for opportunities with high certainty.
2. An opportunity with high certainty refers to sideways fluctuations after a sharp drop, and then an upward breakthrough. At this time, the probability of following the trend is very high. Find the point of trend reversal and get on board at the beginning.
3. Only roll more;
▼Rolling Risk
Let's talk about the rolling strategy. Many people think this is risky, but I can tell you that the risk is very low, much lower than the futures order opening logic you are playing.
If you only have 50,000 yuan, how do you use it to start a business? First of all, this 50,000 yuan should be your profit. If you are still losing money, don't read this.
If you open a position with 10,000 Bitcoin, set the leverage to 10x, and use the position-by-position mode, and only open 10% of the position, that is, only open 5,000 yuan as margin, which is actually equivalent to 1x leverage and 2 points stop loss. If you stop loss, you only lose 2%. Only lose 2%? 1,000 yuan. How did those people who got liquidated get liquidated? Even if you get liquidated, you only lose 5,000 yuan, right? How can you lose everything?
Suppose you are right, and Bitcoin rises to 11,000, and you continue to open 10% of the total funds, and set a 2% loss stop loss. If the stop loss is reached, you still make 8%. What is the risk? Isn’t it said that the risk is very high? And so on. . . .
If Bitcoin rises to 15,000, and you successfully increase your position, you should be able to earn around 200,000 in this 50% market trend. If you catch two such market trends, you will make around 1 million.
There is no such thing as compound interest. 100 times is earned by 10 times twice, 5 times three times, and 3 times four times, not by 10% or 20% compound interest every day or month. That is nonsense. This content not only has the operation logic, but also contains the core inner skills of trading, position management. As long as you understand position management, you will not lose everything. This is just an example. The general meaning is like this. You still need to think about the specific details. The concept of rolling positions itself is not risky. Not only is it risk-free, but it is also one of the most correct ideas for futures trading. The risk is leverage.
10x leverage can be rolled, 1x can be rolled as well, and I usually use 2x or 3x. If I catch it twice, won’t I get dozens of times the profit? If it’s not possible, you can use 0.1x. What does this have to do with rolling? This is obviously a matter of your own choice of leverage. I never told you to operate with high leverage.
And I have always emphasized that only one-fifth of your own money should be invested in the currency circle, and only one-tenth of the money should be invested in spot futures. At this time, the funds for futures only account for 2% of your total funds. At the same time, futures only use two or three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level. Would you feel bad if you lost 20,000 yuan out of 1 million yuan? It is meaningless to always leverage. Some people have always said that rolling positions is risky and making money is just luck. I am not saying this to convince you. It is meaningless to convince others. I just hope that people with the same trading philosophy can play together. It’s just that there is no screening mechanism at present, and there are always harsh voices that interfere with the recognition of those who want to watch.
▼ Fund Management
Trading is not full of risks. Risks can be resolved by fund management. For example, I have a futures account of 200,000 dollars, and a spot account ranging from 300,000 dollars to 1,000,000 dollars. If there is a good opportunity, I will charge more. If there is no opportunity, I will charge less. If I am lucky, I can make more than 10 million RMB a year, which is more than enough. If I am unlucky, the worst case is that my futures account will be exposed. It doesn't matter. The spot income can make up for the loss of the futures account explosion. After making up for it, I will rush in. Can't I make a penny in a year from spot? I am not that bad.
You can not make money but you can not lose money, so I have been liquidated for a long time, and I often take out a quarter of the futures profit and keep it separately. If it is exposed, I will also keep part of the profit. As an ordinary person, my personal advice to you is to take one-tenth of the spot position to play futures, for example, 300,000, take 30,000 to play, and if it is exposed, go for the profit of spot. After you have been exposed eight or ten times, you will always find out something. If you still haven't figured it out, don't play, it is not suitable for this industry.
▼How to grow small funds
Many people have many misunderstandings about trading. For example, small funds should be short-term in order to grow the funds. This is a complete misunderstanding. This kind of thinking is completely trying to use time to exchange space and try to get rich overnight. Small funds should be medium- and long-term in order to grow. Is a piece of paper thin enough? A piece of paper folded 27 times is 13 kilometers thick. Fold it 10 times and fold it 37 times. The earth is not as thick as it. If it is folded 105 times, the entire universe will not be able to accommodate it.
If you have 30,000 yuan in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... so that you can have 400,000 or 500,000 yuan. Instead of thinking about making 10% today and 20% tomorrow... this will kill you sooner or later.
If you want to use cryptocurrency trading as a second source of income, want to get a piece of the cryptocurrency circle, and are willing to spend time to grow and learn, then don't miss this article. Read it carefully, and every point is the essence of the cryptocurrency circle. It can be said that whether it is a bull market or a bear market, these 10 guiding principles for screening new currencies can help you! If used well, it is easy to increase 30 times in a month!
If you want to achieve stable profits, you must keep these ten rules in mind!
1. Don't let floating profit turn into loss. Once there is more than three points of floating profit, set a protective stop loss near the opening price, and never lose the principal. In the currency circle, it is easy to rise by more than three points, especially for small cottages. At this time, you can slightly enlarge your stop profit position, and you can take the method of moving stop profit, and do a protective stop loss by the way. Especially in a bear market, frequent stop profit is a must, only in this way can you protect your profits from being taken away. Normal people can't stand the original floating profit state. They were originally happy and had already started thinking about what they would do with the profit money and what to buy. As a result, not long after, the floating profit turned into a floating loss. It felt like heaven and hell. People with weak psychology can't stand it. Emotions are easily affected, which will affect your decision-making and decision-making ability, and induce you to make some stupid decisions. When you wake up, you find that the account funds are basically sober, and you regret it.
2. Don't make a small profit and a big loss! Just like playing baccarat, today I went up and won 500 yuan with 100 or 200 chips. I was satisfied and retreated. The next day I won 500 again, and I retreated again, feeling happy. On the third day, it was not so smooth. I went up and lost 500. I was unwilling to give up and continued to gamble. I wanted to get my money back in one hand. I bet 500, but I was wrong and lost 1000. All the profits of the previous two days were gone. Then I was unwilling to give up and continued to gamble. I threw 500 chips and 1000 chips at random, and ended up losing 10,000. This is a typical case of winning an egg with one win and losing a chicken with one loss. 2. Embrace the trend and follow the trend. The buying price is not the lower the better, but the more appropriate the better. You will not gain an advantage because the buying price is cheap, because there is no bottom in the decline. Give up the junk coins and the trend is king.
3. In fact, in the speculative market, being flexible is the most wrong approach. Use your own fixed trading system and keep the same in the trading system. I am not afraid of you using 10,000 methods, but I am afraid that you use one method 10,000 times. Not moving is the best defense. Often, when you are most reluctant, you make the most mistakes. You should seriously understand this sentence!
4. Patience is the foundation of making money. You may have to study for a long time and be cheated countless times before you know what the cryptocurrency world is like. It’s okay. Cherish every experience of being cheated. These are the lessons you should learn on the road to investment.
5. The price of the currency has entered a stable upward channel. Each callback is a temporary stop, which is a good opportunity for us to get on the train. There is no currency that keeps rising. The callback is like a spring compression, in order to jump higher. 6. The bottom judged by humans is basically not the bottom, but the middle of the mountain. The formation of the real bottom depends on emotions and funds. So don't blindly buy the bottom. Often 9 out of 10 copies are trapped.
7. When the order is profitable, you can close the position when it reaches your psychological point, and don't think about taking all the profits. At the same time, you should also pay attention to the control of positions and leverage. You should learn to strictly control the positions according to the leverage of the products you make and your own funds.
8. Use moving averages: Short-term operations generally refer to the five-day, ten-day, and twenty-day moving averages. When the five-day moving average crosses the ten-day and twenty-day moving averages, and the ten-day moving average crosses the twenty-day moving average, it is called a golden cross, which is a good time to buy. Otherwise, it is called a dead cross, which is a good time to sell.
9. If you don’t have the right mentality for cryptocurrency trading, you may lose everything even if you have tens of millions. Cryptocurrency trading is all about mentality. Cryptocurrency trading is a psychological game, a competition of intelligence among millions of people, and a fierce psychological warfare.
10. Finally, of course, you should learn more about cryptocurrency investment knowledge, enrich yourself, and make a summary every day. As the saying goes, practice is the only criterion for testing truth. Only after a large number of real transactions can you truly get started in cryptocurrency trading.
Method that I have personally tested: My method of cryptocurrency trading is very simple and practical. It took me only one year to make eight figures. I only trade in one pattern and enter the market only when I see the right opportunity. I don’t trade without a pattern. I have maintained a winning rate of over 90% for five years!
Rolling
Since the Fed cut interest rates, many newcomers have flocked to the cryptocurrency world. The cryptocurrency world is a place where only the fittest survive. The threshold is low, and everyone can enter the cryptocurrency world, but not everyone can make money in the cryptocurrency world. If you plan to enter the cryptocurrency world, please remember that the cryptocurrency world is not a place where you can get rich overnight, but a field that requires long-term accumulation and continuous learning.
Many people come to the cryptocurrency circle with the dream of getting rich overnight, and they fantasize about making 1 million yuan from a few thousand yuan. Of course, it is not that no one has succeeded, but in most cases it can only be achieved through "rolling positions". Although rolling positions is a theoretically feasible way, it is by no means an easy road.
Rolling is a strategy that is only used when big opportunities arise. It does not require frequent operations. If you seize a few such opportunities in your life, you can accumulate tens of millions from zero. And tens of millions of assets are enough for an ordinary person to join the ranks of the rich and achieve financial freedom.
When you really want to make money, don't think about how much money you want to make, what you have to do to make so much, and don't think about those goals of tens of millions or even hundreds of millions. Instead, start from your actual situation and take more time to settle down. Boasting blindly cannot bring us substantial changes. The key to trading is to identify the size of opportunities. You can't always have a light position or a heavy position. You can practice with a small amount of money at ordinary times, and when the real big opportunity comes, go all out. When you really make 1 million yuan from a principal of tens of thousands of yuan, you have unknowingly learned some ideas and logic for making big money. At this time, your mentality will become more stable, and future operations will be more like a repetition of previous successes.
If you want to learn how to roll over, or if you want to learn how to make millions from a few thousand, then you should read the following content carefully.
1. Determine the timing of rolling positions
Rolling a position is not something you can do whenever you want. It requires certain background and conditions to have a greater chance of success. The following four situations are most suitable for rolling a position:
(I) Breakthrough after a long period of sideways trading: When the market is in a sideways state for a long time and the volatility drops to a new low, once the market chooses a breakthrough direction, you can consider using rolling positions.
(ii) Buying at the bottom during a big drop in a bull market: In a bull market, if the market experiences a round of sharp rise and then suddenly falls sharply, you can consider using rolling operations to buy at the bottom.
(III) Weekly level breakthrough: When the market breaks through a major weekly resistance or support level, you can consider using rolling positions to capture the breakthrough opportunity.
(iv) Market sentiment and news events: When market sentiment is generally optimistic or pessimistic, and there are major news events or policy changes that may affect the market in the near future, you can consider using rolling operations.
Only in the above four situations will the chances of success of rolling positions be relatively high. At other times, you should be cautious or give up the opportunity. However, if the market seems suitable for rolling positions, you also need to strictly control risks and set stop loss points to prevent potential losses.
2. Technical Analysis
After you confirm that the market has met the conditions for rolling positions, the next step is to conduct technical analysis. First, you need to confirm the trend and use technical indicators to determine the direction, such as moving averages, MACD, RSI, etc. If possible, combine multiple technical indicators to jointly confirm the trend direction. After all, it is always right to make more preparations. Secondly, you need to identify key support and resistance levels to determine the effectiveness of the breakthrough. Finally, use divergence signals to capture reversal opportunities. (Divergence signal: When the price of a certain currency hits a new high, MACD does not hit a new high, forming a top divergence, indicating that the price will rebound, you can reduce your position or go short; similarly, when the price hits a new low, MACD does not hit a new low, forming a bottom divergence, indicating that the price will rebound, you can add positions or go long.)
3. Position Management
After this step is completed, the next step is position management. Reasonable position management includes three key steps: determining the initial position, setting the position increase rules and formulating the position reduction strategy. Let me give you an example to help you understand the specific operations of these three steps:
Initial position: If my total capital is 1 million yuan, then the initial position should not exceed 10%, that is, 100,000 yuan.
Rules for adding positions: You must wait until the price breaks through the key resistance level before adding positions. Each increase in position should not exceed 50% of the original position, that is, a maximum of 50,000 yuan can be added.
Reduced position strategy: When the price reaches the expected profit target, gradually reduce the position, and don't hesitate when it's time to let go. Each reduction should not exceed 30% of the existing position to gradually lock in profits.
In fact, as ordinary people, we should charge more when the opportunities are great, and charge less when the opportunities are few. If we are lucky, we can earn millions, and if we are unlucky, we can only accept the loss. But I still want to remind you that when you make money, you should withdraw the invested capital, and then use the earned part to play. You can not make money but you cannot lose money.
4. Adjusting Positions
After completing position management, the most critical step is how to implement rolling operations through position adjustments.
The operation steps are undoubtedly those steps:
1. Choose the right time: enter the market when the market meets the conditions for rolling positions.
2. Open a position: Open a position based on technical analysis signals and choose a suitable entry point.
3. Add positions: Gradually add positions as the market continues to develop in a favorable direction.
4. Reduce positions: Gradually reduce positions when the predetermined profit target is reached or the market shows reverse signals.
5. Close the position: When the profit target is reached or the market shows a clear reversal signal, the position is completely closed.
Here I share with you my specific operations of rolling positions:
(I) Adding to floating profits: When the investment assets appreciate, you can consider adding to your position, but the premise is to ensure that the cost of holding the position has been reduced, thereby reducing the risk of loss. This does not mean that you should add to your position every time you make money, but you should do it at the right time, such as adding to your position in a convergence breakthrough market in the trend, and then quickly reducing it after the breakthrough, or adding to your position when the trend pulls back.
(II) Base position + T: Divide the assets into two parts, one part remains unchanged as the base position, and the other part is used to buy and sell when the market price fluctuates to reduce costs and increase profits. The proportions can refer to the following three types:
1. Half-position rolling: half of the funds are used for long-term holding, and the other half is used to buy and sell when prices fluctuate.
2. 30% base position: 30% of the funds are held for the long term, and the remaining 70% are used to buy and sell when prices fluctuate.
3. 70% bottom position: 70% of the funds are held for the long term, and the remaining 30% is used to buy and sell when prices fluctuate.
The purpose of doing this is to optimize the holding cost while maintaining a certain position and taking advantage of short-term market fluctuations.
When you reach this step, you have actually completed most of the process. The picture above shows my holdings. For details, please refer to the article I wrote yesterday: Exclusive Reveal | My Cryptocurrency Holdings Revealed
V. Risk Management
Risk management mainly consists of two parts: total position control and fund allocation. Make sure that the overall position does not exceed the tolerable risk range, allocate funds reasonably, and do not invest all funds in a single operation. Of course, real-time monitoring is also required, and market dynamics and technical indicators should be closely monitored. Flexible adjustments should be made according to market changes, and stop losses or adjust positions in a timely manner when necessary.
Many people are afraid and eager to try when they hear about rolling positions. They want to try but are afraid of the high risk. In fact, the risk of rolling positions itself is not high. The risk is leverage, but the risk is not great if leverage is used properly.
Just like if I have 10,000 yuan in principal and open a position when a certain coin is 1,000 yuan, I use 10x leverage and only use 10% of the total funds (that is, 1,000 yuan) as margin, which is actually equivalent to 1x leverage. Set a 2% stop loss. If the stop loss is triggered, I will only lose 2% of the 1,000 yuan, that is, 200 yuan. Even if the liquidation condition is eventually triggered, you will only lose the 1,000 yuan, not all the funds. Those who have liquidated their positions often use higher leverage or larger positions, which may trigger liquidation with a slight market fluctuation. But according to this method, even if the market is unfavorable, your losses are limited. So 20 times can be rolled, 30 times can be rolled, then 3 times can also be rolled, and at worst 0.5 times can also be used. Any number of times of leverage is fine, the key is to use and control the position reasonably.
The above is the basic process of using rolling positions. Friends who want to learn can read it several times and think about it carefully. Of course, there will be different opinions, but I only share my experience and do not convince others.
So how can we make small funds bigger?
Here we have to mention the compound interest effect. Imagine if you have a coin and its value doubles every day, then after a month, its value will become extremely amazing. The value doubles on the first day, doubles again on the second day, and so on, and the final result will be an astronomical figure. This is the power of the compound interest effect. Even if it is just a small amount of money at the beginning, after a long period of continuous doubling, it can also increase to tens of millions.
For those who want to enter the market with a small amount of capital, I suggest that you focus on big goals. Many people think that small capital should frequently make short-term transactions to achieve rapid appreciation, but in fact it is more suitable for medium and long-term investment. Compared with making small profits every day, you should focus on how many times the growth you can achieve with each transaction, and the unit should be times, exponential growth.
As for the position, you must first know how to diversify the risk and not concentrate all the funds on one transaction. You can divide the funds into three or four parts, and only use one part for trading each time. If you have 40,000 yuan, divide it into 4 parts, and use 10,000 yuan for trading. Secondly, you should use leverage appropriately. My personal suggestion is that you should not use more than 10 times for big cakes and two cakes, and not more than 4 times for cottages. In addition, you should make dynamic adjustments. If you lose, you should supplement the same amount of funds from the outside. If you make money, you should withdraw it appropriately. Don't let yourself lose money anyway. Finally, you should increase your position. Of course, the premise of this is that you have already made a profit. When your funds grow to a certain level, you can slowly increase the amount of each transaction, but don't add too much at one time. You should make a gradual transition.
I believe that through reasonable position management and a sound trading strategy, small funds can also gradually realize substantial appreciation. The key is to patiently wait for the right time and focus on the big goal of each transaction, rather than the small daily profits. Of course, I have also been liquidated, but I still have spot income to make up for my losses. I don't believe that you didn't make a penny from the spot on hand. My futures only account for 2% of the total funds. No matter how much I lose, I will not lose it all, and the amount of loss has always been within my control. Finally, I hope that each of us can make a fortune and make hundreds of millions.
Well, that’s all for today. In future investments, if you want to improve your learning efficiency in the crypto world and Web3, please follow me and join an excellent investment team. Keep up with the market pulse and seize the bull market opportunity. Success comes from wise choices and strategies, not accidental luck.
