Veterans in the crypto world know that the real profit secret lies not in going all in, but in knowing how to 'roll'. Today, we will break down this advanced strategy that leaves newbies confused and experts addicted.
One, the essence of rolling positions: using profits to generate more profits
Rolling positions is not mindlessly leveraging, but turning realized profits into new bullets. It's like playing Texas Hold'em, using the chips you've won to continue betting, while your initial capital is already safely in your pocket. Adding to a position with profits is just one of the flashy maneuvers of rolling positions; the core idea is to use unrealized gains as a shield, allowing both offensive and defensive strategies.
Two, why do retail investors always lose when adding to positions, while experts love rolling positions?
The most common mistake beginners make is 'averaging down when prices fall', resulting in more leaks. True players understand: when the trend is wrong, you should first cut some positions and reopen with profits. It’s like saving your game; if you die, you can reload. Especially in the futures market, rolling positions can help you avoid the nightmare of losing everything during a liquidation.
Three, the three key principles of rolling positions
Wait for the right trend before taking action: Don't roll in a volatile market; it's easy to get chopped up.
Calculate hidden costs: Fees and funding rates can be the most damaging hidden arrows.
Always leave an escape route: Even when using profits, set stop-loss orders.
Remember, surviving longer in the crypto world is more important than making quick profits. Rolling positions is like surfing; you must ride the trend, pull back when the waves are too high, and increase your stake when the waves are good. Those who flaunt hundredfold returns daily often disappear the next day; true experts are quietly compounding their gains through rolling positions.
Survival guide in the crypto world: When you start considering rolling positions, ask yourself three questions - Has this trend ended? Do I still have a cost advantage? If there is a crash now, can I sleep well?
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