In the cryptocurrency world, making $1 million from a few thousand dollars only has one path: rolling over.
Once you have $1 million in capital, you will find that your life seems different; even if you don't use leverage, just holding spot for a 20% rise will yield $200,000, which is already the ceiling of annual income for the vast majority.
Moreover, when you can grow from several thousand to $100,000, you will touch upon some ideas and logic for making big money. At that point, your mindset will calm down a lot, and from then on, it's just a matter of copying and pasting.
Don't always think in terms of tens of millions or hundreds of millions; you need to start from your actual situation. Bragging only makes you feel good. Trading requires the ability to identify the size of opportunities; you can't always trade small positions, nor can you always trade large positions. Usually, trade small positions, and when big opportunities arise, then unleash your full potential.
For example, rolling over should only be done when there are big opportunities; you can't keep rolling over. Missing out is okay because you only need to roll over successfully three or four times in your life to go from zero to tens of millions, and tens of millions is enough for an ordinary person to become wealthy.
First, we need to know under what circumstances rolling over is suitable:
Currently, only the following three situations are suitable for rolling over:
1► Choose a direction after a long horizontal fluctuation at a new low volatility.
2► Buying the dip after a major drop in a bull market.
3► Breakthrough of major resistance/support levels on the weekly chart.
In general, there are only these three situations where success is more likely; all other opportunities should be abandoned.
Common view:
Defining rolling over: In a trending market, leveraging significantly profits, due to a passive decline in overall leverage, to achieve compound profit effects by increasing trend positions at the right time. The process of increasing positions is called rolling over.
The following are methods for rolling over:
● Adding positions with floating profits: After obtaining floating profits, you can consider adding to your positions. However, before adding, you need to ensure that the holding cost has been lowered to reduce the risk of loss. This does not mean to blindly add positions after making a profit but to do so at the right time.
● Base position + T-trading roll-over operation: Divide funds into multiple parts, keep a portion as a base position unchanged, and use another portion for high selling and low buying operations. The specific ratio can be chosen based on individual risk preferences and capital scale. For example, you can opt for half positions for rolling T-trading, 30% base positions for rolling T-trading, or 70% base positions for rolling T-trading, etc. This operation can reduce holding costs and increase profits.
I believe there are mainly two types of 'the right time':
1. Adding positions during a converging breakout in a trend, and quickly reducing the added positions after the breakout to capture the main uptrend.
2. Increasing trend positions during a pullback in a trend, such as buying in batches during moving average pullbacks.
There are many specific methods for rolling over; the most common is through adjusting positions. Traders can gradually reduce or increase their holdings based on market changes to achieve profit. Traders can also use trading tools like leverage to amplify profits, but this also increases risk.
Key points to note about roll-over trading:
1. Sufficient patience; the profits from rolling over are enormous. As long as you can roll over successfully a few times, you can at least earn tens of millions or even billions, so you cannot roll easily. Look for opportunities with high certainty and ten-out-of-ten reliability.
2. What is a ten-out-of-ten opportunity? It is when the price plummets, then starts to consolidate sideways, and suddenly surges upwards. At this time, the trend is likely to reverse, and you need to jump in quickly so as not to miss a good opportunity. 10%-100% version.
1⃣ Only 10% of people in this market can make 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 eliminate those without investment logic or patience.
3⃣ Always maintain a mentality of bearing 30%-50% pullback to be able to smile till the end; otherwise, the process will be a torment for you.
4⃣ 40% of retail investors may end their journey right at the start; the pitfalls in this circle are more than you can imagine;
5⃣ At least 50% of people in this market choose to play contracts, and most will end up with nothing and lose everything. Remember that contracts are just gambling;
6⃣ In a bull market trend, 60% or more of those playing spot trading can earn. Those who can hold steady throughout the entire bull market cycle are the final winners.
7⃣ It is estimated that 70% of people continuously recharge without ever withdrawing money; the cryptocurrency world is far more brutal 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 are ultimately just passersby in this market, yet everyone believes they are the chosen ones;
Finally, #BTC will 100% reach $1 million; always believe in this.
3. Only roll long;
4. Setting appropriate stop loss and profit-taking points is very important.
Rolling over short selling is a high-risk strategy; market volatility can lead to significant losses. When entering a trade, we should set a reasonable stop loss point. Once the market trend goes against expectations, we should stop loss in time to control losses. It's equally important to set appropriate profit-taking points to protect profits. This ensures we secure enough profits before the market reverses.
5. Reasonable fund management is also the key to steady profits.
When performing rollover short selling, we should allocate funds reasonably and not invest all funds into one trade. Diversifying investments can reduce risks and increase overall stability. We should also adhere to risk control principles and avoid misusing leverage to prevent greater losses.
6. Timely tracking of market dynamics is also key to profitability.
Market conditions are constantly changing, and we should maintain sensitivity to the market and adjust strategies in a timely manner. Staying updated and learning relevant technical indicators and trading tools can help us analyze market trends better and improve prediction accuracy.
Rolling over short selling in the cryptocurrency market can be a strategy for earning profits, but it needs to be done cautiously. By accurately predicting market trends, setting appropriate stop loss and profit-taking points, managing funds reasonably, and tracking market dynamics in a timely manner, we can steadily obtain profits in the market.
Of course, if it’s a cryptocurrency like Eth, you can also try using forced rollover methods, such as staking, lending, or investing in liquidity pools to obtain safer returns. Specific currencies should also be analyzed to avoid liquidity issues.
▼ Rolling over risks.
Let's talk about the rollover strategy. Many people think this is risky, but I can tell you that the risk is very low, far lower than your futures opening logic.
If you only have $50,000, how to start with $50,000? First, this $50,000 needs to be your profit; if you are still losing, don't look anymore.
For example, if you open a position at $10,000 for Bitcoin with a leverage of 10 times using the isolated margin mode, only opening 10% of the position means you are only putting up $5,000 as margin, which is equivalent to 1x leverage with a 2% stop loss. If you hit the stop loss, you only lose 2%, just 2%? $1,000. How do those who get liquidated get fully liquidated? Even if you get liquidated, you only lose $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 capital, also set a stop loss of 2%. If you hit the stop loss, you still earn 8%. What about the risk? Is it really that high? This goes on and 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 two such market movements could lead to around $1 million.
Compound interest does not exist; 100 times is achieved through two times 10 times, three times 5 times, four times 3 times, not through daily or monthly compound interest of 10% or 20%. That's nonsense.
This content not only contains operational logic but also embodies the core principles 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, and specific details still need to be pondered.
The concept of rolling over itself carries no risk; not only does it not bear risk, but it is also one of the most correct ideas for futures trading. The risk lies in leverage. You can roll with 10x leverage, and you can also roll with 1x. Generally, I use two or three times leverage. Capturing two such movements yields similar returns of dozens of times. If nothing else, you can use 0. something leverage. How is this related to rolling over? This is clearly your own choice regarding leverage; I have never said to operate with high leverage.
Moreover, I have always emphasized that in the cryptocurrency world, only invest one-fifth of your money, and only invest one-tenth of your spot funds in futures. At this point, the funds for futures only account for 2% of your total capital, while using only 2-3 times leverage, and only trading Bitcoin, which can be said to reduce the risk to a very low level.
If you lose $200,000, will it hurt?
Always leveraging isn't interesting; people often say rolling over carries high risks, and that making money is just luck. I'm not saying this to persuade you or others; I just hope that like-minded traders can play together.
There is currently no screening mechanism; there are always jarring voices that interfere with the recognition of those who want to watch.
▼ Fund management
Trading is not filled with risks; risks can be mitigated with fund management. For example, my futures account has $200,000, and my spot account ranges from $300,000 to $1,000,000 randomly. If opportunities are abundant, invest more; if not, invest less.
With good luck, you can earn over 10 million RMB in a year, which is more than enough. With bad luck, the worst-case scenario is your futures account gets liquidated. It doesn’t matter; the profits from your spot trading can compensate for the losses from the futures liquidation. After compensating, you can jump back in. Is it really impossible to make any money from spot trading in a year? I’m not that bad yet.
You may not make money, but you cannot lose money. That's why I have not been liquidated for a long time; also, I often save one-fourth or one-fifth of the profits from futures separately. Even if I get liquidated, I will still retain some profits.
As an ordinary person, my personal advice is to take one-tenth of your spot position to trade futures. For example, if you have $300,000, take $30,000 to trade. If it exposes you, just inject profits from spot trading. After getting liquidated ten or eight times, you will definitely grasp some inner workings. If you still haven't figured it out, then don't trade; it's not suitable for this field.
▼ How small funds can grow.
Many people have many misconceptions about trading; for example, they think that small funds should trade short-term to grow their capital, which is a complete misconception. This way of thinking is entirely trying to exchange time for space, hoping to get rich overnight. Small funds should do medium to long-term trading instead.
Is one piece of paper thin enough? If a piece of paper is folded 27 times, it's 13 kilometers thick. If it’s folded 10 more times, it will reach 37 folds, which is thicker than the Earth. If folded 105 times, the entire universe cannot accommodate it.
If you have a capital of $30,000, you should think about how to triple it in one wave, and then triple it again in the next wave... this way you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.
I believe many friends in the community have experienced the helplessness of buying in fully and being stuck; the market rises drastically but has nothing to do with you, and cutting losses is difficult. These can be avoided through position management.
Enough talk, let's get straight to the point:
Position management gives current suggestions to everyone:
For example, you take out $30,000 for contracts.
So my suggestion is to divide it into three parts, each part $10,000.
Every time I open a position, I use one part of it to open a position, a fixed $10,000.
The big coin should not exceed 10 times, and altcoins should not exceed 5 times.
If you lose money.
For example, if you lose $1,000, you can supplement it with $1,000 from outside.
If you've made $1,000, you should withdraw $1,000.
Ensure that you say in the recent period
You can ensure that every position you open is a fixed $10,000.
Until you have earned $60,000 from your $30,000 using this method.
Raise each of your positions to $20,000.
This is how to do it. The benefit is:
The first point is to diversify positions + use low leverage to avoid being liquidated by the exchange's spike, resulting in losing all funds.
The second point is to avoid getting too emotional. If one day you get too emotional and lose everything, at most you will lose 1/3, and the remaining part can still give you a buffer.
The third point is to maintain a fixed position; whether you are at a loss or at a profit, you can maintain a relatively calm mindset, which can help stabilize your emotions.
My habit of opening positions is to go all in at once.
For example, one position of $10,000, one market move one coin, is a full position opened.
Going all in is one-third of the funds, altcoins 5 times, big coins 10 times, this way full positions can be entered and exited.
The way I enter is that overall, I have a relatively precise grasp of the entry point.
If you always have stop losses and use low leverage, it's impossible to get liquidated.
My logic is not to look at all indicators, only to focus on position profit and loss.
For example, if my total scale earns X%, I will add a position; if my total scale loses Y%, I will stop loss completely or exit.
All operations are only related to my position's profit and loss; the K-line only serves to indicate the initial direction of my positions.
As for those indicators, their original function is to reflect the profit and loss situation of the positions represented by these indicators.
In fact, my operation is essentially an intangible indicator, specially used by the master Li Fomore; I usually don’t tell ordinary people.
The martial arts secret has been given to you all; whether you can become famous in the Jianghu depends on yourself.