If you plan to invest in the crypto circle, please spend a few minutes reading my answer without missing a word, as it might save your life and a family.
Thousands of originally happy families end up destroyed, stemming from chasing the unattainable dream of making big money in the crypto space.
I believe that if I really want to pursue trading, I still need to study diligently. In addition to understanding the basic knowledge, I should also analyze news and study technical indicators.
If you do not conduct in-depth research and reasonably plan your financial management, your funds will only be worn away. Ultimately, as a completely ungrounded retail investor, you will only joyfully enter and leave in disappointment.
There is a reason why some famous technical indicators have endured over time. For example, the MACD divergence signals, KDJ overbought and oversold signals, support and resistance signals, etc. While they cannot guarantee profits, they can allow you to quantitatively analyze within a relatively mature model and provide investors with a basic direction.
In the crypto circle, making 1 million in capital from several thousand only has one path, and that is rolling over.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you don’t use leverage, a 20% rise in spot would yield 200,000, which is already the ceiling of income for the vast majority of people in a year.
Moreover, when you can turn tens of thousands into 100W, you will touch on some ideas and logic for making big money. At this point, your mindset has also calmed down a lot, and from then on, it's just copy and paste.
Don't always think in terms of millions or billions; start from your reality. Bragging only makes you feel good. Trading requires the ability to identify the size of opportunities; you can't always play with small positions or always go heavy. Usually, just play with small positions, and when a big opportunity comes, then bring out the big guns.
For instance, rolling over is an opportunity that can only be acted upon when big chances come. You can't keep rolling over. Missing an opportunity is fine because you only need to succeed three or four times in your life to go from 0 to tens of millions. Tens of millions is enough for an ordinary person to upgrade to the rank of the wealthy.
First, we need to know under what circumstances rolling over is appropriate:
Currently, only the following three situations are suitable for rolling over:
1► Choosing a direction after a long period of low volatility sideways.
2► Buying the dip after a significant drop in a bull market.
3► Breaking through significant resistance/support levels at the weekly level.
Overall, only the above three situations have a better chance; all other opportunities should be abandoned.
General opinion:
Define rolling over: In a trending market, using leverage to generate large 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 over.
Here are the methods for rolling over:
Floating profit increasing: After gaining 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 gaining profits but doing so at the right time.
Base position + T trading rolling operation: Divide funds into several parts, leaving some base capital untouched, while another portion of the position is engaged in high sell-low buy operations. The specific ratio can be chosen based on personal risk preferences and fund sizes. For example, you can choose to roll half a position for T trading, three parts base capital for T trading, or seven parts base capital for T trading, etc. This operation can lower holding costs and increase returns.
In my definition, the 'right time' mainly has two types:
1. In a converging breakout market trend, increase positions; after the breakout, quickly reduce the additional positions gained.
2. In a trend's pullback market, increase trend-type positions, such as buying in batches at moving averages during pullbacks.
There are various specific methods for rolling over, the most common being to adjust holdings to achieve this. Traders can gradually decrease or increase the number of positions based on market conditions to achieve profitability. Traders can also use trading tools like leverage to amplify returns, but this will also increase risks.
A few points to note about rolling over:
1. Enough patience; the profits from rolling over are huge. As long as you can roll successfully a few times, you can earn at least tens of millions, even hundreds of millions. Therefore, you must not roll easily; find high-certainty, highly stable opportunities.
2. What is a high-certainty opportunity? It’s when the price crashes and starts to consolidate sideways, then suddenly surges up. At this time, the trend is likely to reverse; you need to get on board quickly and not miss a good opportunity.
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 occur during 20% of the bull market time; the rest of the time will eliminate those without investment logic and patience.
3⃣ Always maintain a mindset that can endure a 30%-50% drawdown to laugh until the end; otherwise, the process will be a torment for you.
4⃣ 40% of the retail investors may end up quitting right at the beginning; the pitfalls in this circle are more numerous than you can imagine.
5⃣ At least 50% of people in this market will choose to play contracts; most will ultimately gain nothing and lose everything. Remember, contracts are just gambling.
6⃣ In a bull market, more than 60% of those playing spot can earn; being able to hold steady throughout the entire bull market cycle is what makes the final winner.
7⃣ It is estimated that 70% of people are continuously depositing without ever withdrawing any funds; the crypto world is far more brutal than you can imagine.
8⃣ 80% of people are unable to return to the past due to the wealth effect of this circle, becoming addicted like drug use.
9⃣ 90% of people ultimately are just passersby in this market, but everyone believes they are the chosen ones.
Lastly, #BTC will 100% reach 1 million dollars; always believe in this.
3. Only roll long positions;
4. It is very important to set appropriate stop-loss and take-profit levels.
Rolling shorting is a high-risk strategy, and market fluctuations can lead to significant losses. When entering a trade, we should set a reasonable stop-loss point, and once the market trend goes against expectations, promptly stop-loss to control losses. Equally important is setting appropriate take-profit levels to protect profits. This ensures we gain enough profit before the market reverses.
5. Reasonable capital management is also key to steady profits.
When performing rolling shorting operations, we should allocate funds reasonably and not invest all funds into one trade. Diversifying investments can reduce risk and improve overall stability. We should also follow risk control principles and avoid over-leveraging to prevent greater losses.
6. Timely tracking of market dynamics is also key to profitability.
Market conditions are constantly changing; we should maintain sensitivity to the market and adjust strategies in a timely manner. Timely understanding and learning related technical indicators and trading tools can help us analyze market trends better and improve prediction accuracy.
Rolling over and shorting 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 levels, managing funds reasonably, and timely tracking market dynamics, we can steadily gain profits in the market.
Of course, if it's a cryptocurrency like Eth, you can also try forced rolling over, engage in staking, lending, or putting into liquidity pools to earn safer returns. Specific coins should be analyzed to avoid liquidity issues.
▼ Rolling risks
Let's talk about rolling strategies. Many people think this is risky, but I can tell you that the risk is very low, far lower than the logic of the futures trades you play.
If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit. If you are still at a loss, just stop looking.
If you open a position at 10,000 for Bitcoin with a 10x leverage setting, using the isolated margin mode, only opening 10% of the position, it means you only open 5,000 as margin. This is essentially 1x leverage, with a 2% stop-loss. If you stop-loss, you only lose 2%, just 2%? 1,000 bucks. How did those who blew their accounts manage to blow them? Even if you blow your account, isn’t it just 5,000 lost? How could you lose everything?
If you are right and Bitcoin rises to 11,000, you continue to open 10% of the total funds, and set a stop-loss at 2%. If you stop-loss, you still earn 8%. Where's the risk? Isn't it said the risk is very high? This can be extended...
If Bitcoin rises to 15,000, and you add positions smoothly, during this wave of 50% market movement, you should earn around 200,000. If you catch two such movements, that's about 1 million.
There is fundamentally no compound interest; 100x comes from two instances of 10x, three instances of 5x, and four instances of 3x earned; it is not accumulated through daily or monthly 10% or 20% compound interest; that is nonsense.
This content not only contains operational logic but also embodies 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. Specific details still require you to ponder more.
The concept of rolling over itself does not have risks; not only does it have no risk, but it is also one of the correct approaches to futures trading. The risk lies in leverage. You can roll with 10x leverage or 1x; I usually use two to three times, catching two instances is the same as tens of times profit, right? If not, you can use 0.几倍 (a fraction) leverage; this has nothing to do with rolling over. It’s clearly your choice regarding leverage. I've never said you should operate with high leverage.
Moreover, I always emphasize that in the crypto circle, only invest one-fifth of your money, and at the same time, only invest one-tenth of your spot money in futures. At this time, the funds for futures only account for 2% of your total funds, and futures only use two to three times leverage, and only play Bitcoin. This can be said to reduce risks to a very low level.
Will you feel pained when 200,000 is gone?
Always leveraging is meaningless; people often say that rolling over is risky, and that making money is just luck. I’m not saying this to convince you; convincing others is pointless. I only hope that those with the same trading philosophy can play together.
Currently, there is no filtering mechanism; there will always be harsh voices that interfere with the recognition of those who want to see.
▼ Capital Management
Trading is not filled with risks; risks can be mitigated through capital management. For example, my futures account has 200,000, and my spot account ranges randomly from 300,000 to over 1 million. When there’s a big opportunity, I invest more; when there’s little opportunity, I invest less.
With good luck, you can earn more than 10 million RMB in a year, which is already quite enough. If luck is bad, the worst-case scenario is that the futures account blows up. It doesn't matter, as the spot gains can compensate for the futures losses. After compensating, you can jump back in. Is it really impossible to earn even a penny in spot trading in a year? I’m not that bad yet.
You may not make money, but you cannot lose money. So I haven't blown up my account in a long time. Moreover, in futures, I often earn and save one-fourth to one-fifth separately. Even if my account blows up, profits will still be retained.
As an ordinary person, my advice to you is to use one-tenth of your spot position to play futures. For example, if you have 300,000, use 30,000 to play and when exposed, invest the profits from spot trading. After you have blown up ten or eight times, you will surely grasp some insights. If you still haven't grasped it, just don't play; it's not suitable for this line of work.
▼ How to grow small capital
Many people have many misconceptions about trading, such as thinking that small funds should do short-term trading to grow funds. This is a complete misconception; this kind of thinking is an attempt to use time to exchange for space, trying to get rich overnight. Small funds should do medium to long-term trading to grow.
Is one piece of paper thin enough? If you fold a piece of paper 27 times, it becomes 13 kilometers thick. If you fold it 10 more times for a total of 37 folds, it would be thicker than the Earth. If folded 105 times, the entire universe would not be able to contain 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'll have four or five hundred thousand. Instead of thinking about making 10% today, 20% tomorrow... this will eventually lead to your downfall.
I believe many friends in the community have experienced the feeling of being trapped after buying in with all their funds, experiencing a market surge that feels unrelated to themselves, and being unable to cut losses. These can be avoided through position management.
No more nonsense, let's get straight to the point:
Position management gives everyone the current advice:
For example, if you take out 30,000 U to trade contracts.
My suggestion is to divide it into three parts, each part being 10,000 U.
Each time you open a position, use one share to open, fixed at 10,000 U.
Bitcoin should not exceed 10 times leverage, and altcoins should not exceed 5 times.
If you lose money,
For example, if you lose 1,000 U, you can supplement it with 1,000 U from outside.
If you earn 1,000 U, you take 1,000 U out.
Ensure to say in recent times
You can ensure that every time you open a position, it is at a fixed position of 10,000 U.
Until you have earned 60,000 U using this method with 30,000 U.
Raise each of your positions to 20,000 U.
This is how to do it. The benefits are:
The first point is to split holdings + low leverage to avoid getting wiped out by exchange spikes.
The second point is to avoid getting overly emotional about problems. On a certain day, if you get too emotional and lose everything, you can at most lose one-third, leaving the rest as a buffer for you.
The third point is to maintain a fixed position, whether you are at a loss or gain, you can maintain a relatively calm mindset, which can help stabilize your mind.
My habit when opening positions is to fill them completely.
For example, one contract of 10,000 U, with a coin per trend, is a full open position.
Full position is one-third of the funds, altcoins five times, Bitcoin ten times, thus entering and exiting at full capacity.
My approach is that overall, I have a relatively precise control over the opening points.
If you always set stop-losses and use low leverage, it’s impossible to blow your account.
My logic is not to look at all indicators but to focus on the profit and loss of positions.
For example, if my total scale earns X%, I add one portion of the position; if the total scale loses Y%, I will stop loss completely or exit.
All operations only relate to my position's profit and loss; the K-line only plays a role in determining the initial direction of my opening.
As for those indicators, their original purpose is to feedback the profit and loss situation of the positions discovered by these indicators.
In fact, my operation essentially is an abstract indicator, specifically for the master Li Fomoer, and I generally do not tell ordinary people.
The secret skills have been given to you all; whether you can gain fame in the world depends on yourself.
Everyone must save the methods provided and review them multiple times. Those who find them useful can share them with more people trading cryptocurrencies around them. Follow me to learn more crypto insights. After being through the rain, I am willing to hold the umbrella for retail investors! Follow me, and let’s walk hand in hand on this crypto journey!
Successfully recouping losses and doubling the account. Stick to old habits, position early, and enjoy big profits!!!
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