Friends mixing in the crypto circle have definitely stepped on many pitfalls. The most heartbreaking truth is: 90% of people lose money because they are too 'itchy'! Staring at the K-line every day and frantically trading results in a decreasing principal. But why can some people turn tens of thousands into millions? It relies on the trick of 'rolling positions'!
Some may ask: Isn't rolling positions just increasing or heavily investing? Totally wrong! Rolling positions are like rolling a snowball, using earned money to make more money, with low risks but profits skyrocketing like a rocket. Simply put, it’s allowing profits to 'give birth' themselves; this is the true way of compound interest!
If you want to learn how to roll positions, remember these three iron rules:
1. Only play during a big rising market: When the market is jumping up and down like an ECG, don’t touch it! Only when the market rises steadily, as if it's on a power trip, is it a good time for rolling positions.
2. Use your profits to increase positions: Don’t easily dig into your original capital! Wait until your account shows floating profits, then use the earned money to increase positions; if you lose, it won't hurt your vitality.
3. Timely lock in profits: The more you earn, the more cautious you must be! For every rise, adjust the stop-loss line upwards to ensure that the money you have won won’t fly away.
How specifically to operate? Remember these few steps:
- Step one: Wait for the market to confirm that it is really rising, and first build a bottom position with 20%-30% of your funds. For example, if you have 100,000 yuan, invest 20,000-30,000 yuan to test the waters.
- Step two: Wait until the bottom position is profitable, then increase positions in batches, but don’t let the total position exceed 50%. For example, if it rises by 10%, add 10,000; if it rises another 10%, add another 10,000, but don’t go all in at once!
- Step three: Know when to take profits!
- When the price drops below the 10-day line, sell half first;
- Break below the 20-day line, sell everything immediately;
- If the price is stagnant but volume increases, regardless of whether you are making a profit, hurry and run!
Many people end up losing everything while playing rolling positions because they step into these three big pits:
1. Counter-trend trading: The market is obviously in a big drop, yet you stubbornly increase positions; isn’t that just giving away money?
2. Play with high leverage: 10x, 100x leverage looks thrilling, a small fluctuation can lead to losing everything!
3. Emotional trading: Getting high and aggressively adding when it rises, panicking and cutting losses when it drops; isn’t that just a typical 'chive life'?
Real experts play rolling positions, practicing 'wu wei' (non-action): When the market is rising, hold on comfortably; when the market turns down, clear out immediately. Remember, the market won’t follow your thoughts; we can only follow the rhythm of the market! In fact, there are only about 20% of the time in a year when you can actually make money, but if you seize this 20%, you can earn 80% of the profits!
Stop relying on luck to trade blindly! Instead of being 'chives' in the market, try this scientific trading method. Follow Turing, sharing practical tips and insider information daily, helping you avoid detours and reducing 'tuition'!