In the crypto world, 90% of losses come from frequent trading
But the truly top players let their assets grow exponentially through 'rolling positions'
What is rolling positions?
Rolling positions means letting profits run, rather than rushing to cash out.
Ordinary players: cash out after a 10% gain, then miss out on a big market.
Rolling position players: increase their position with unrealized gains, letting the trend work for them.
The core logic of rolling positions
Trend is king: roll positions only in bull markets or strong trends; it does not apply in sideways markets.
Increase position with unrealized gains: use profits to seek greater profits, rather than risking the principal.
Move up stop-loss: as profits grow, gradually raise the stop-loss level to lock in profits.
Incorrect rolling positions = gambling, correct rolling positions = compounding machine.
Practical skills for rolling positions
(1) Confirm the trend before taking action
(2) Pyramid position increasing method
Initial position: 20%-30% of funds for trial
Trend continuation: use profits to incrementally increase position
Final position should not exceed 50% of total funds
(3) Dynamic take-profit, let profits fly
Falls below the 10-day moving average? Reduce position by 50%
Falls below the 20-day moving average? Liquidate position
Volume increases but price stagnates? Take profits incrementally
Remember: You won't go bankrupt from taking profits, but you might go to zero from greed.
4. Deadly traps of rolling positions
Rolling against the trend: adding to positions in a downtrend leads to more losses (typical: holding contracts stubbornly)
Excessive leverage: rolling positions ≠ all-in; high leverage can accelerate liquidation
Emotional trading: going all-in during FOMO, cutting losses in panic
5. The highest realm of rolling positions: effortless governance
After building a position, look at the market less and trade less
Let the market move on its own; you only need to follow the trend
80% of profits come from 20% of the time; endure loneliness to enjoy prosperity
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