Bitcoin Rolling Positions: Survival Strategies and Deadly Temptations for Seasoned Traders
Navigating the contract market without understanding rolling positions is like going to battle with a dull knife. Simply put, this is a high-level strategy of 'using profits to continue betting', but if not done well, it can dig your own grave.
1. The Essence of Rolling Positions
Imagine you have won three times at the casino; do you pocket the chips or bet them all on the next round? Rolling positions is choosing the latter. Close out old contracts before expiration and open new ones, allowing profits to keep running. When done correctly, this is a compounding miracle; when done poorly, it’s a 'death spiral'.
2. Deadly Traps
1. Leverage is a double-edged sword - 10x leverage rolling positions and 1x rolling positions are completely different worlds.
2. The liquidation line will chase you - when prices reverse, margin is like a bucket with holes.
3. Emotions can easily spiral out of control - after successfully rolling positions three times in a row, one can develop an 'invincible illusion'.
3. Experts Only Act in Three Situations
1. When the market has been stagnant like a dead fish for months and suddenly revives.
2. During a bull market, when prices drop more than 30%, causing panic selling.
3. When a key weekly level is broken, like breaking the previous Bitcoin high at a crucial moment.
Remember: Only in full position mode can you play this game; incremental position mode is like being a eunuch - watching unrealized gains anxiously. True experts understand that the essence of rolling positions is not 'how fast you roll', but 'when to stop'. When the entire group is shouting 'keep adding positions', it is often a signal to cash out and run.
There are no gods in the crypto market; this advice can help you avoid blowing up two positions.
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