I have been trading cryptocurrencies for over 10 years, and I have developed a no-brainer rolling position method: 300 times in 3 months, earning 30 million. If you also want to share a piece of the pie in the crypto market, take a few minutes to read this article carefully; it will benefit you for a lifetime!
01 Rolling Position Timing
02 Technical Analysis
03 Position Management
04 Adjust Positions
05 Risk Management
Since the Federal Reserve's interest rate cut policy was settled, the cryptocurrency market has welcomed a wave of new investors, who are eager to find their place in this field. However, the crypto world is not paved with gold; it is more like a brutal natural selection, where only those who truly adapt to market rules can stand firm. Although the market is open to everyone, the number of investors who can achieve substantial returns in this field is few.
For those preparing to enter the crypto market, it is essential to clearly recognize that the crypto world is not a place where one can easily achieve the dream of overnight wealth. On the contrary, it requires investors to conduct long-term market research, accumulate experience, and engage in continuous learning. Many enter the market with fantasies of quick wealth, hoping to achieve enormous returns through small investments. Although such success stories do exist, they often require carefully planned 'rolling position' strategies to be realized, which are neither easy nor achievable through frequent operations.
The 'rolling position' strategy is theoretically feasible; it requires investors to invest at an appropriate position when significant opportunities arise in the market, rather than frequently making small trades. The successful implementation of this strategy often relies on accurate judgment of market trends and timing. Although capturing just a few such opportunities in a lifetime can lead to wealth accumulation from zero to tens of millions, it requires investors to possess extremely high market insight and decision-making ability.
In the pursuit of profit, investors should not only focus on the final profit target but should pay more attention to how to achieve those targets. This means starting from their actual situation, investing time and energy to deeply understand the market rather than blindly pursuing unrealistic huge profits. The essence of trading lies in identifying and seizing opportunities, not in blindly chasing light or heavy positions.
In daily trading practice, investors can use small amounts of capital to operate, thus accumulating experience and skills. When real big opportunities arise, they can then go all out to seize them. As investors gradually grow from small capital to millions, they will unconsciously master the strategies and logic for making big money. At this point, their mindset will become more mature and stable, and future operations will resemble replicating and optimizing past successful experiences.
For those looking to learn the rolling position strategy or understand how to grow a small principal into millions, the following content will provide valuable guidance and advice. This will be a journey filled with challenges and opportunities, requiring investors to invest a lot of time and energy to study and practice deeply.
Rolling Position Timing
The art of rolling positions cannot be mastered on a whim. It requires the right timing, favorable conditions, and the right people to increase the odds of success. Here are four golden opportunities for rolling positions:
(1) Breakthrough after Long-term Consolidation: When the market has been in a consolidation phase for a long time and volatility has dropped to new lows, once the market chooses a breakout direction, this is when you can consider using rolling positions.
(2) Buying the Dip in a Bull Market: In the waves of a bull market, the market experiences a strong rise followed by a sudden sharp decline. At this point, consider using the rolling position strategy to capture the opportunity to buy the dip.
(3) Breakthrough at Weekly Level: When the market breaks through key resistance or support levels on the weekly chart, it is like breaching a solid defense line. At this point, rolling positions can seize this breakthrough opportunity.
(4) Market Sentiment and News Events: When market sentiment is as changeable as the weather or there are major news events and policy changes that could shake the market, rolling positions can become a powerful tool in your hands.
Only under these specific circumstances will the odds of rolling positions significantly increase. At other times, it's best to remain cautious or simply abandon unclear opportunities. But if market conditions seem suitable for rolling positions, don’t forget to strictly control risks and set stop-loss points to guard against unexpected situations. After all, wise investors are always those who know how to find a balance between risk and opportunity.
Technical Analysis
After confirming that the market is suitable for rolling positions, the next step is technical analysis. First, look at the trend using tools such as moving averages, MACD, and RSI to determine whether the market is moving up or down. If possible, it is best to use multiple indicators together for more reliability.
Identify key support and resistance points in the market, assess whether the breakthrough is reliable, and use divergence signals to catch reversal opportunities. For example, if the price hits a new high but MACD does not follow, this could be a top divergence, indicating that the price may fall, at which point consider reducing positions or shorting. Conversely, if the price hits a new low but MACD does not, this could be a bottom divergence, indicating that the price may rise, at which point consider adding to positions or going long.
Position Management
Reasonable position management is key in three steps: determining the initial position, setting rules for adding positions, and formulating reduction strategies. An example makes this easier to understand.
Initial Position: If you have 1 million yuan, it is best not to exceed 10% of the initial investment, which is 100,000 yuan.
Add position rules: When you decide to increase your investment, wait until the price breaks through a key resistance level; each additional investment should not exceed 50% of the original investment amount, meaning at most an additional 50,000 yuan.
Reduction Strategy: Once the price reaches your expected profit target, you can begin to gradually sell off. Remember, let go when it's time; do not hesitate. It’s best not to sell more than 30% of your current holdings each time, so you can gradually lock in your profits.
In fact, as ordinary investors, we can be bold when we encounter great opportunities, but should be conservative when such opportunities are rare. With good luck, we might earn a few million; with bad luck, we can only accept reality. However, I must remind everyone that once you make money, you should first withdraw the invested principal, then continue to invest with the profits. It's okay not to make money, but you must not lose money.
Adjust positions
After mastering position management, we come to the most crucial step—how to achieve rolling positions through adjusting holdings.
1. Timing: Enter the market only when the conditions for rolling positions are met.
2. Opening Positions: Follow the signals from technical analysis and find the right timing to enter the market.
3. Add Positions: If the market is moving in your direction, then gradually add to your position.
4. Reduce positions: When profit targets are met or the market seems off, slowly sell.
5. Close Positions: Once you reach your target price, or the market clearly indicates a change, sell everything.
Here's how to operate specifically; I'll share my rolling position insights:
(1) Add to positions after making a profit: If your investment has risen, consider adding more, but only after the cost has been lowered and the risk minimized. Not every profit should lead to an increase; rather, it should be done at the right moment, such as at a breakthrough point in a trend, and quickly reduce when a breakthrough occurs, or add during a pullback.
(2) Base Position + Trading: Divide your assets into two parts, keeping one part as a base position and using the other part to trade when market prices fluctuate, which can reduce costs and increase returns. Here are a few ways to divide:
1. Half Position Rolling: Hold half of the funds long-term, and trade the other half during price fluctuations.
2. 30% Base Position: Hold 30% of funds long-term, and trade the remaining 70% during price fluctuations.
3. 70% Base Position: Hold 70% of funds long-term, and trade the remaining 30% during price fluctuations.
The purpose of this is to maintain a certain position while using short-term market fluctuations to adjust costs and optimize the positions.
Risk Management
Risk management, simply put, involves two things: controlling total position and fund allocation. Ensure that your total investment does not exceed the risk you can bear, and allocate funds wisely—do not put all your eggs in one basket. Additionally, always pay attention to market dynamics and changes in technical indicators, flexibly adjust strategies based on market conditions, and set stop-loss points or adjust investment amounts when necessary.
Many people may feel both excited and scared at the thought of rolling positions, eager to try but worried about risks. In fact, the risk of the rolling position strategy itself is not large; the key lies in the use of leverage. If used properly, risks can be fully controlled.
For example, if I have 10,000 yuan in capital and I open a position when a certain coin is priced at 1,000 yuan, I use 10 times leverage but only 10% of the total funds (i.e., 1,000 yuan) as margin, meaning I am only using 1 times leverage. If I set a 2% stop-loss line, once the market turns unfavorable, I only lose 2% of this 1,000 yuan, which is 200 yuan. Even in the worst-case scenario, triggering the liquidation condition, you only lose this 1,000 yuan and not all your funds. Those who face liquidation often do so because they used excessive leverage or had too heavy a position; even slight market fluctuations could trigger a liquidation. But with this method, even if the market is unfavorable, your losses are still limited. Therefore, whether you use 20 times, 30 times, or even 3 times or 0.5 times leverage, the key is whether you can use leverage reasonably and control your position.
The above outlines the basic operational process of rolling positions. Interested friends can take a closer look and study it carefully. Of course, everyone's perspective may differ; I am just sharing my experience and do not intend to persuade anyone.
How can small capital grow large? The power of compound interest.
If you have a coin that doubles in value every day, after a month, it will be astonishingly valuable. Doubling on the first day, doubling again on the second day, and continuing this way, the final number will be incredibly large. This is the magic of compound interest. Even if you start with little capital, as long as you keep doubling, you can eventually accumulate an astonishing amount.
For those with limited funds but eager to enter the market, aim for big goals. Many assume that small funds should engage in frequent short-term trading to quickly increase value, but in reality, medium to long-term trading may be more suitable. Instead of making small profits daily, it’s better to focus on achieving multiples of growth with each trade; we seek exponential growth, not just incremental increases.
In position management, first, diversify risks; do not put all your funds into one trade. You can divide your funds into three or four parts, using only one part for each trade. For example, if you have 40,000, divide it into four parts and use only 10,000 for each trade.
Use leverage moderately. Don't exceed ten times leverage for mainstream currencies, and no more than four times for small tokens.
Adjust dynamically. If there are losses, supplement with an equivalent amount from external sources; if there are gains, extract some appropriately. In any case, do not let yourself fall into losses.
When your funds grow to a certain extent, you can consider gradually increasing the amount for each trade, but do not increase too much at once; it should be gradual.
Through reasonable position management and sound trading strategies, small funds can gradually achieve substantial appreciation. The key is to patiently wait for the right opportunity and focus on the big goals of each trade, rather than daily small profits.
I also know that liquidation can happen to anyone. But I had gains from spot trading to offset losses, and I don’t believe you haven’t earned anything from your spot holdings. My futures only accounted for 2% of total funds; no matter how much I lost, it wouldn’t wipe me out, and my losses were always within my control.
I hope we can all make our funds grow larger like a snowball.
During the investment process for all loyal fans, Kuige will not only provide analysis ideas for investors, basic knowledge of market observation, and various investment tools, but will also bring wonderful interpretations of fundamentals, sorting out the chaotic international situation, and identifying various investment forces.
