It has been a long time since I updated. Many crypto friends have privately messaged me the most about how small funds can trade to grow big. I believe many of you have started from small funds, as no one begins with large funds or all their savings to trade crypto.

Next, I will talk about this knowledge point -- rolling positions.

How to roll positions:

In the crypto world, you need to find a way to first earn $1 million in capital, and the only way to earn $1 million from tens of thousands is one path.

That is called rolling positions.

When you have $1 million in capital, you will find that your whole life seems to be different. Even if you don't use leverage, with cash rising...

20% means you have $200,000. $200,000 is already the income ceiling for most people in a year.

Moreover, when you can grow from tens of thousands to $1 million, you will also grasp some thoughts and logic for making big money. At this time, your mindset will also calm down a lot, and from then on, it will just be copying and pasting.

Don't always aim for tens of millions or hundreds of millions; start from your actual situation. Always bragging only makes oneself comfortable. Trading requires the ability to identify the size of opportunities; you can't always trade with small positions, nor can you always trade with heavy positions. Usually, just play with small positions, and when a big opportunity comes, then pull out the heavy artillery.

For example, rolling positions can only be executed when big opportunities come. You cannot always roll; if you miss it, it doesn't matter because you only need to roll successfully three or four times in your lifetime to go from zero to tens of millions. Tens of millions is enough for an ordinary person to upgrade.

Into the ranks of wealthy people.

A few points to pay attention to when rolling positions:

1. Enough patience; the profits from rolling positions are huge. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions, so you cannot roll easily; you need to find high-certainty opportunities.

High-certainty opportunities refer to sideways fluctuations after a sharp drop, followed by an upward breakout. At this time, the probability of following the trend is very high.

Find the point of trend reversal early on and get in right away.

3. Only roll long positions;

Rolling position risks

Let's talk about rolling position strategies. Many people think this has risks; I can tell you that the risks are low, far lower than the logic of opening positions in futures.

If you only have $50,000, how do you start with $50,000? First, this $50,000 must be your profit. If you are still losing, then don't watch.

If you open a position at $10,000 for Bitcoin with a leverage set at 10 times, using a sequential position mode and only opening 10% of the position, that is, only opening $5,000 as margin, which is actually equal to 1 times leverage, with a 2% stop loss. If you stop loss, you only lose 2%; you only lose 2%, right? $1,000. How did those who got liquidated get liquidated? Even if you get liquidated, isn’t it just losing $5,000? How could it be completely gone?

If you are correct and Bitcoin rises to $11,000, you continue to open 10% of your total capital, and set a stop loss at 2%. If you stop loss, you still make an 8% profit. Is there risk? Isn’t it said that the risk is very big? And so on...

If Bitcoin rises to $15,000 and you add to your position successfully, during this wave of 50% market, you should be able to make around $200,000. Grabbing two such market opportunities is about $1 million.

Compound interest does not exist at all. 100 times is made by two 10 times, three 5 times, or four 3 times profits, not by 10% or 20% compound interest daily or monthly. That’s nonsense.

This content not only has operational logic but also contains the core inner work principle of trading: position management. As long as you understand position management, you cannot lose everything.

This is just an example; the general idea is like this. The specific details still need to be pondered by yourself.

The concept of rolling positions itself does not have risks; not only does it have no risks, but it is also one of the most correct ideas for trading futures. The risk lies in leverage. 10 times leverage can roll, and 1 time can also work, but I usually use two to three times. If you catch two opportunities, isn’t that the same as dozens of times profit? Even if you use 0.几 times, what does this have to do with rolling positions? This is clearly your own choice regarding leverage; I have never said to use high leverage for trading.

Moreover, I have always emphasized that the circle only invests one-fifth of its own money, and simultaneously only invests one-tenth of the cash to play futures. At this time, the funds in futures only account for 2% of your total funds, and futures only use two to three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level.

Would you feel heartbroken if you lost $20,000 from $1 million?

If you keep leveraging, it becomes meaningless. There are always people saying that rolling positions are risky, that making money is just good luck. Saying these things is not to persuade you; persuading others is meaningless. I just hope that people with the same trading philosophy can play together.

It's just that there is currently no filtering mechanism, and there are always harsh voices that interfere with the recognition of those who want to watch.

▼ Capital management

Trading is not full of risks; risks can be mitigated through capital management. For example, I have a futures account of $200,000 and a cash account ranging from $300,000 to over $1 million randomly. If there are many opportunities, I will invest more; if there are few opportunities, I will invest less.

With good luck, you can earn over ten million RMB in a year, which is more than enough. If luck is bad, the worst-case scenario is the futures account is liquidated. It doesn't matter; the cash profits can compensate for the losses from the futures liquidation. After compensating, you can dive back in. Can cash not make a single penny in a year? I haven't reached that level of incompetence.

You can not make money but you cannot lose money, so I have been liquidated for a long time, and in futures, I often save one-fourth to one-fifth of my profits separately. The profits that I disclose will also retain a portion.

As an ordinary person, my personal suggestion is to use one-tenth of your cash position to play futures. For example, if you have $300,000, take $30,000 to play. Once exposed, use the profits from cash to invest. After you have been liquidated ten or eight times, you will surely grasp some insights. If you still haven't grasped it, then don't play; it's not suitable for you.

▼ How to grow small funds

Many people have many misconceptions about trading. For example, small funds should do short-term trading to grow their capital, which is completely erroneous thinking. This kind of thinking is simply trying to exchange time for space, attempting to get rich overnight. Small funds should do medium-to-long-term trading to grow.

Is a piece of paper thin enough? If you fold a piece of paper 27 times, it will be 13 kilometers thick. If you fold it 10 more times to the 37th fold, it will be thicker than the Earth. If you fold it 105 times, the entire universe will not be able to contain it.

If you have $30,000 in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... then you will have four or five hundred thousand. Don't think about making 10% today and 20% tomorrow... this will eventually kill you.

Always remember, the smaller the capital, the more you should do long-term trading, using compounding to grow, and don't do short-term trading for small profits. This article ends here. If you have read it, please give me some attention, and I will update more knowledge content in the future. This article is just personal insight, and anything related to money is a scam. Everyone, protect your money bags. Meeting adjourned.

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