Once you have 1,000,000 in capital, you will find that your entire life seems different. Even if you don’t use leverage, a 20% increase in spot holdings will yield 200,000, which is already the income ceiling for most people in a year.
When you can grow from tens of thousands to 100,000, you will grasp some ideas and logic for making big money. At this point, your mindset will also stabilize a lot, and the future will be about replication.
Don’t casually talk about millions or billions; start from your actual situation. Stop boasting; it only makes you feel good.
Trading requires the ability to recognize the size of opportunities; you can’t always trade lightly or heavily. Usually, trade with small amounts, and when a significant opportunity arises, then bring out your big guns.
For example, rolling positions should be acted upon only when significant opportunities arise. You can’t keep rolling; it’s okay to miss. You only need to successfully roll a few times in your lifetime to grow from zero to tens of millions. Tens of millions are enough for an ordinary person to elevate to the ranks of the wealthy.
A few points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions can be enormous. As long as you can succeed in rolling a few times, you can earn at least tens of millions or even hundreds of millions, so you cannot roll lightly; you must look for opportunities with high certainty.
2. High certainty opportunities refer to situations where the market experiences a sharp drop followed by sideways movement, then breaks upward. The probability of following the trend is high; identify the point of trend reversal and get on board early.
3. Only roll long positions;
▼ Rolling Risk
Let’s talk about rolling strategies. Many people think this is risky; I can tell you the risk is very low, much lower than the logic of trading futures.
If you only have 50,000, think about how to start from 50,000. This 50,000 should be your profit. If you are still at a loss, then don’t read further.
If you open a position at 10,000 in Bitcoin, set the leverage to 10 times and use only 10% of your total capital, it’s equivalent to using 1x leverage with a stop loss of 2%. If you hit the stop loss, you only lose 2%, which is just 200. How do those who face liquidation end up losing everything? Even if you get liquidated, it’s just a loss of 5,000, right? How could you lose everything?
If you were correct and Bitcoin rose to 11,000, you continue to open positions with 10% of your total capital, similarly 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 significant? And so forth...
If Bitcoin rises to 15,000 and you are adding positions smoothly, you should be able to make about 200,000 from this 50% market move. Capturing two such market moves means around 1,000,000.
Compound interest does not exist; 100 times is earned through two instances of 10 times, three instances of 5 times, or four instances of 3 times, not through daily or monthly gains of 10% or 20%. 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 will never lose everything. This is just an example; the general idea is like this, and the specific details need to be pondered further. The concept of rolling positions itself carries no risk; it not only has no risk but is also one of the most correct ideas for trading futures. The risk lies with leverage.
10x leverage can be rolled, and 1x can too. I usually use two to three times. Grabbing two significant moves yields the same dozens of times in returns. If worse comes to worst, you can use a fraction of a leverage; this has nothing to do with rolling positions; it’s clearly a matter of your own leverage choices. I have never said to use high leverage for operations.
Moreover, I always emphasize that one should only invest one-fifth of their money in the crypto market, and only one-tenth of their spot money in futures. At this stage, the funds for futures should only account for 2% of your total funds, and leverage should only be two to three times, focusing solely on Bitcoin. This can be said to minimize risks significantly. Would you feel heartbroken if you lost 20,000 out of 1,000,000? Constantly using leverage loses its meaning. There are always people saying that rolling positions carry high risks and that making money is just about good luck. Saying this isn't to persuade you; persuading others is pointless. I just hope that those with similar trading philosophies can play together. Currently, there is no filtering mechanism, and there will always be discordant voices that interfere with the acceptance of those who want to learn.
▼ Capital Management
Trading is not fraught with risks; risks can be mitigated through capital management. For example, I have a futures account with 200,000, and a spot account ranging from 300,000 to over 1,000,000. When there’s a big opportunity, I invest more; when there’s no opportunity, I invest less. With good luck, I can earn over ten million RMB in a year, which is more than enough. In the worst-case scenario, if the futures account is liquidated, it doesn’t matter; spot gains can compensate for the futures losses. After compensating, I can jump back in. Are you telling me that you can’t earn a penny from spot holdings in a year? I haven’t reached such a level of incompetence.
It’s okay not to earn money, but you must not incur losses. That’s why I haven’t faced liquidation for a long time, and I often save a quarter or a fifth of my gains separately. Even if I face liquidation, profits will still be retained. As an ordinary person, my personal advice is to use one-tenth of your spot position to trade futures. For instance, if you have 300,000, use 30,000 to play; if liquidation occurs, use profits from spot trading to cover it. After experiencing this several times, you will eventually grasp some insights. If you still can’t grasp it, then don’t play; this field may not be suitable for you.
▼ How small funds can grow larger
Many people have misunderstandings about trading. For instance, they think small funds should engage in short-term trading to grow their capital, which is fundamentally a misconception. This mindset completely attempts to exchange time for space, aiming for overnight wealth. Small funds should focus on medium to long-term trading to grow larger. Can a piece of paper be thin enough? If a piece of paper is folded 27 times, it becomes 13 kilometers thick. If folded 10 more times, it reaches 37 folds, becoming thicker than the Earth. If folded 105 times, the entire universe would not be able to accommodate it.
If you have a capital of 30,000, you should think about how to triple it in one go, and then triple it again in the next wave... this way you will have four to five hundred thousand. Instead of aiming for 10% today and 20% tomorrow... this will eventually lead to your downfall.
If you want to treat crypto trading as a second source of income and are willing to invest time to grow and learn, then you must not miss this article. Read it carefully, as each point is the essence of the crypto world. Whether in a bull market or a bear market, these 10 guiding principles for selecting new coins can be helpful! If used well, it’s quite simple to see returns of 30 times in a month!
To achieve stable profits, these ten iron rules must be firmly kept in mind!
1. Don’t let unrealized profits turn into losses. Once you have more than three points of unrealized profit, set a protective stop loss near the opening price; never lose your principal. In the crypto world, gaining three points is quite easy, especially with small altcoins. At this time, you can slightly increase your take-profit position and apply a trailing stop loss for protection, especially in a bear market. Actively taking profits is essential to protect your profits from being snatched away. Normal people will find it unbearable to have unrealized profits turn into losses, feeling heavenly at first, already thinking about what to do with the earnings, what to buy, only to find that not long after, gains turn into losses, feeling like they’ve fallen from heaven to hell. Those with weaker psyches cannot withstand this; their emotions can easily be influenced, affecting their decision-making abilities and leading them to make foolish choices. By the time they regain clarity, they’ll find their account balance has also been cleared, regretting it.
2. Don’t small profits lead to large losses! It’s like playing baccarat; today I bet one hundred or two hundred, winning 500. I’m satisfied and withdraw. The next day I win another 500, and I withdraw again, feeling pleased. But on the third day, things don’t go as smoothly; I lose 500, and unwilling to accept it, I keep betting, trying to recover by betting 500 again, but I lose 1000, wiping out the profits from the previous two days. Then I keep betting, throwing chips of 500 or 1000, and end up losing tens of thousands. This is a typical case of winning small and losing big. 2. Embrace the trend and go with it; the price you buy at is not necessarily better when it's lower, but when it’s more appropriate. You won’t gain an advantage just because the buying price is cheap; after all, falling prices don’t signal a bottom. Let go of garbage coins; trend is king.
3. In speculative markets, being reactive is the most erroneous approach. Use your fixed trading system, adapting your trading system to the changes without fear. The best defense is often to remain still; the times you are most reluctant to act are when you make the most mistakes. This is something you should seriously reflect on!
4. Patience is the foundation of making money. You may need to study for a long time and be deceived numerous times to understand the situation in the crypto world. It’s okay; cherish every experience of being deceived; these are lessons on the investment journey.
5. When the coin price enters a stable upward channel, each pullback serves as a temporary stop, providing a great opportunity to get on board. No coin rises continuously; pullbacks are like compressed springs, ready to jump higher. 6. Manually judged bottoms are generally not real bottoms but mid-levels. The true formation of a bottom is based on sentiment and capital, so never blindly try to catch a bottom; often, if you try to catch 10, you will be stuck 9 times.
7. When profiting from positions, close them as soon as you reach your psychological target. Do not aim to capture everything. Also, pay attention to position and leverage control, and learn to strictly control positions based on the product’s leverage combined with your funds.
8. Using 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 above the ten-day and twenty-day moving averages, and the ten-day moving average crosses above the twenty-day moving average, it’s called a golden cross, indicating a buying opportunity; conversely, it’s called a death cross, indicating a selling opportunity.
9. Trading mentality is crucial; even with ten million, you could end up with nothing. Trading in the crypto world is all about mindset. It’s a psychological competition among millions, a fierce psychological battle.
10. Lastly, of course, learn more about crypto investment knowledge, enrich yourself, and summarize daily. As the saying goes, practice is the only criterion for testing truth. Only through a large number of real trades can one truly enter the world of crypto trading.
Methods that have been personally tested: My trading methods are very simple and practical. Within one year, I traded my way to eight figures, focusing only on one pattern. I enter the market only when the opportunity is right and avoid trading without a pattern, maintaining a win rate of over 90% for five years!
Rolling Positions
Since the Federal Reserve’s interest rate cut, many newcomers wanting to enter the crypto world have flooded in. The crypto world is a place where the fittest survive. The barriers to entry are low, allowing everyone to enter the crypto world, but not everyone can make money in it. If you plan to enter the crypto world, please be sure to remember that it is not a place for overnight wealth, but a field requiring long-term accumulation and continuous learning.
Many people come to the crypto world with dreams of overnight wealth, fantasizing about turning a few thousand into a million in capital. Of course, some have succeeded, but in most cases, this can only be achieved through 'rolling positions'. Although rolling positions are theoretically feasible, it is by no means an easy path.
Rolling positions are a strategy suitable for use only when major opportunities arise, requiring infrequent operations. Seizing just a few such opportunities in a lifetime can lead to accumulating wealth from zero to tens of millions. An asset of tens of millions is sufficient for an ordinary person to join the ranks of the wealthy and achieve financial freedom.
When you truly want to earn money, don’t focus on how much you want to earn or how to achieve such earnings. Don’t even think about those targets of several million or even a billion. Instead, start from your actual situation and invest more time to settle down. Merely boasting won’t bring us substantial change. The key to trading lies in recognizing the magnitude of opportunities; you can’t always trade lightly or heavily. You can practice with small amounts in normal times, and when real big opportunities arise, go all in. Once you grow your capital from tens of thousands to one hundred thousand, you will unconsciously learn some ideas and logic for making big money. At this point, your mindset will stabilize, and future operations will resemble previous successes.
If you want to learn rolling positions, or in other words, how to grow from a few thousand to several million, then you need to pay close attention to the following content.
1. Judging the Timing for Rolling Positions
Rolling positions are not just about wanting to do it; certain backgrounds and conditions are required to have a greater chance of success. The following four scenarios are most suitable for rolling positions:
(1) Breakthrough after long-term consolidation: When the market has been in a consolidation state for a long time, with volatility dropping to new lows, once the market chooses a breakout direction, consider using rolling positions.
(2) Bottom fishing during major drops in a bull market: If the market experiences a significant drop after a substantial rise in a bull market, consider using rolling positions to catch the bottom.
(3) Weekly level breakthroughs: When the market breaks through significant resistance or support at the weekly level, consider using rolling positions to seize the breakout opportunity.
(4) Market sentiment and news events: When market sentiment is generally optimistic or pessimistic, and there are significant news events or policy changes that may impact the market, consider using rolling positions.
Rolling operations have a higher chance of success only under the four scenarios mentioned above. At other times, you should operate cautiously or abandon the opportunity. However, even if the market appears suitable for rolling positions, it is also necessary to strictly control risks, set stop-loss points, and prevent potential losses.
2. Technical Analysis
Once you confirm that the market meets the conditions for rolling positions, the next step is to conduct technical analysis. First, confirm the trend using technical indicators to determine the direction, such as moving averages, MACD, RSI, etc. If possible, confirm the trend direction using multiple technical indicators together; after all, it’s better to be more prepared. Next, identify key support and resistance levels to assess the validity of the breakout. Finally, use divergence signals to capture reversal opportunities. (Divergence signals: When the price of a coin reaches a new high while MACD does not, forming a top divergence, it indicates a potential price rebound, and positions can be reduced or shorted; similarly, when the price reaches a new low while MACD does not, forming a bottom divergence, it indicates a potential price rebound, and positions can be added or bought up.)
3. Position Management
After doing this step well, the next is position management. Reasonable position management includes three key steps: determining the initial position, setting rules for adding positions, and formulating reduction strategies. I’ll give an example to make it easier for everyone to understand the specific operations of these three steps:
Initial position: If my total capital is 1 million, then the initial position should not exceed 10%, which is 100,000.
Adding position rules: Only add positions after the price breaks through key resistance levels, with each addition not exceeding 50% of the original position, which means a maximum addition of 50,000.
Reduction strategy: Gradually reduce positions after the price reaches the expected profit target. 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.
As ordinary people, we should increase our investments more when we see significant opportunities and less when opportunities are scarce. If luck is on our side, we can earn a few million; if not, we have to accept our fate. But I still want to remind you that when you make money, you should withdraw your invested principal and use the earned portion to play. It’s okay not to earn money, but you must not incur losses.
4. Adjusting positions
After completing position management, the most crucial step is how to achieve rolling operations through position adjustments.
The operational steps are undoubtedly just a few steps:
1. Timing selection: Enter the market when conditions for rolling positions are met.
2. Opening positions: Open positions based on technical analysis signals and choose appropriate entry points.
3. Adding positions: Gradually add positions as the market continues to move in a favorable direction.
4. Reducing positions: Gradually reduce positions when the predetermined profit target is reached or when the market shows a reverse signal.
5. Closing positions: Fully close positions when the profit target is reached or when the market shows a clear reversal signal.
Here I will share my specific operations for rolling positions:
(1) Adding positions on unrealized gains: When the invested asset appreciates, consider adding positions, but the prerequisite is to ensure that the holding cost has been reduced to minimize the risk of loss. This doesn't mean to add positions every time you make a profit, but to do so at the right moments, such as during a convergence breakout in a trend, adding after a breakout and quickly reducing after that, or adding during a trend retracement.
(2) Base Position + T-trading: Divide the assets into two parts, keeping one part unchanged as a base position, and using the other part to trade during market price fluctuations to lower costs and increase returns. The ratio can refer to the following three types:
1. Half-position rolling: Use half of the funds for long-term holding, and the other half for trading during price fluctuations.
2. Thirty Percent Base: Hold thirty percent of the funds long-term, using the remaining seventy percent for trading during price fluctuations.
3. Seventy Percent Base: Hold seventy percent of the funds long-term, and use the remaining thirty percent to trade during price fluctuations.
The purpose of this approach is to maintain a certain position while optimizing holding costs through short-term market fluctuations.
Once you reach this step, you have already completed a large portion of the process. The image above shows my position situation. You can refer to the article I wrote yesterday for an exclusive reveal of my crypto holdings.
5. Risk Management
Risk management mainly consists of two parts: controlling the total position and allocating funds. Always ensure that the overall position does not exceed the acceptable risk range, and allocate funds reasonably without putting all your money into a single operation. Of course, it’s also essential to monitor in real-time, closely watch market dynamics and changes in technical indicators, and adjust flexibly according to market changes. If necessary, stop losses or adjust positions in a timely manner.
Many people feel both fear and eagerness when they hear about rolling positions, wanting to try but fearing high risks. In fact, the risk of rolling positions themselves is not high; the risk comes from leverage, but when used reasonably, it won’t pose significant risks.
For example, if I have 10,000 in capital and open a position at 1,000 for a certain coin using 10x leverage and only using 10% of my total capital (which is 1,000) as margin, this is actually equivalent to 1x leverage. Setting a 2% stop loss means that if triggered, I will only lose 2% of that 1,000, which is 200. Even if liquidation occurs, you only lose that 1,000, not all your funds. Those who face liquidation often do so because they used higher leverage or larger positions, causing slight market fluctuations to trigger liquidation. However, by following this method, even in adverse markets, your losses remain limited. Therefore, whether it’s 20x or 30x leverage, 3x can also be rolled. If worse comes to worst, even 0.5x can work. Any level of leverage can be used; the key is to use it reasonably and control positions appropriately.
The above outlines the basic process of rolling positions. Friends who want to learn can watch it a few more times and ponder it carefully. Of course, there will be different opinions, but I only share my experience and do not persuade others.
So how should small funds grow?
Here, it’s essential to mention the power of compound interest. Imagine if you have a coin, and its value doubles every day. After a month, its value will be astonishing. The first day it doubles, the second day it doubles again, and so on, leading to astronomical results. This is the power of compound interest. Even starting with a small amount, it can grow to millions over a long period of continuous doubling.
For those looking to enter the market with small funds, I recommend focusing on big goals. Many people think small funds should frequently engage in short-term trading for quick appreciation, but actually, they are more suited for medium to long-term trading. Instead of aiming for small daily profits, focus on achieving several times growth in each trade, using multiplying factors for growth.
First, you need to understand how to diversify risks and not concentrate all your funds in a single trade. You can divide your funds into three to four parts, using only one part for each trade. If you have 40,000, divide it into four parts, using 10,000 for trading. Secondly, use leverage moderately; I personally recommend not exceeding 10x for Bitcoin and 4x for altcoins. Additionally, dynamically adjust; if you incur losses, supplement it with equal amounts of external funds, and if you make profits, extract them appropriately. The goal is to prevent any losses. Lastly, adding positions should be done only when you are already in profit. As your funds grow to a certain extent, you can gradually increase the amount for each trade, but don’t add too much at once; transition slowly.
I believe that with reasonable position management and a steady trading strategy, small funds can gradually achieve significant appreciation. The key is to patiently wait for the right moment and focus on the big goals of each trade, rather than small daily profits. Of course, I have also faced liquidation, but at that time, I still had spot gains to offset my losses. I don’t believe any of you have earned nothing from your spot holdings. My futures account only occupies 2% of my total funds, and no matter how much I lose, I won’t lose everything; my losses have always remained within my controllable range. Finally, I hope that each of us can build up and eventually earn hundreds of thousands or even millions.
Alright, that’s all for today. In future investments, if you wish to enhance your learning efficiency in the crypto and Web3 space, feel free to follow me and join an excellent investment team. Keep up with market trends and seize opportunities in the bull market. Success comes from wise choices and strategies, not mere luck.
