Some say rolling positions is the secret to wealth, while others have gone bankrupt and jumped off buildings because of it. Today, let’s clarify this love-hate operation.
In simple terms, rolling positions means closing a position before the contract expires and then opening a new one to continue playing. It's like changing tables in Mahjong; when you're on a winning streak, you want to keep winning, but don't forget - the table has changed, and the risks are accumulating.
Why do experienced traders love rolling positions?
When the sideways movement has lasted too long and finally needs to break out
Opportunities to buy the dip after a sharp drop in a bull market
When breaking through a key resistance level
But remember: leverage is the knife in your hand; it can chop vegetables or cut your hands. Rolling positions with 10x leverage? That’s gambling with your life. Playing slowly with 2-3x leverage is the way to go.
The easiest trap for beginners:
Thinking that floating profits mean guaranteed gains (only possible in full position mode)
The forced liquidation line will change with the position (in full position mode)
Holding on without setting a stop-loss (this is suicide, not investment)
To be frank: I've seen too many people roll positions down to zero. Either control your hands, or play slowly with small leverage. The crypto market is not short of opportunities; what’s lacking is the capital to survive until the next bull market.
(Experienced crypto traders know: the longer the sideways movement, the more intense the breakout. But how do you determine whether it will break upwards or downwards?)
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