In the crypto world, you need to find a way to earn 1 million RMB in capital first. The only way to earn 1 million from a few tens of thousands is through rolling positions.
Once you have 1 million RMB in capital, you'll find that your whole life seems different. Even if you don't use leverage, if you have spot trading that rises 20%, that's 200,000 RMB. 200,000 is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to 100,000, you will grasp some thoughts and logic for making big money. At this point, your mindset will calm down a lot, and from then on, it’s just a matter of copying and pasting.
Don’t always think about tens of millions or hundreds of millions. Start from your actual situation. Bragging only makes the braggers feel good. Trading requires the ability to identify the size of opportunities. You can't always trade with small positions, nor can you always trade with large positions. Usually, play with small positions, and when a big opportunity arises, then pull out your big guns.
For example, rolling positions can only be done when big opportunities arise. You can't roll all the time. Missing out is fine because in your lifetime, you only need to roll successfully three or four times to go from zero to tens of millions. Tens of millions are enough for an ordinary person to join the ranks of the wealthy.
A few points to note when rolling positions:
1. Sufficient 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.
You should not roll easily; instead, look for high certainty opportunities.
2. 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 quite high. Identify the trend reversal point and get in right from the start.
3. Only roll long positions;
▼ Risks of Rolling Positions
Let’s talk about rolling position strategies. Many people think this is risky, but I can tell you, the risk is very low, much lower than the logic of opening futures positions.
If you only have 50,000 RMB, think about how to start with that 50,000. First, this 50,000 should be your profit. If you are still losing, then don’t look at this.
If you open a position in Bitcoin at 10,000 with a leverage setting of 10 times and use a gradual position mode, only opening 10% of your position, that is only using 5,000 RMB as margin. This is actually equivalent to 1 times leverage. With a 2% stop loss, if you hit the stop loss, you only lose 2%. Only lose 2%? That's 1,000 RMB. How do those who blow up their accounts do it? Even if you blow up your account, it's just a 5,000 RMB loss. How can you lose everything?
If you are correct and Bitcoin rises to 11,000, you continue to open 10% of your total capital, similarly setting a 2% stop loss. If you hit the stop loss, you still earn 8%. Where's the risk? Didn't they say the risk is very high? And so on...
If Bitcoin rises to 15,000 and you successfully add positions, in this 50% market, you should be able to make around 200,000. Catching two such opportunities can yield about 1 million.
There is fundamentally no compound interest. 100 times is earned through two times 10 times, three times 5 times, or four times 3 times, not by compounding 10% or 20% daily or monthly. That's nonsense.
This content not only has operational logic but also contains the core principles 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, but the specific details need to be pondered more by yourself.
The concept of rolling positions itself does not have risks. Not only does it not carry risks, but it is also one of the correct approaches to futures trading. The risk lies in leverage. You can roll with 10 times leverage, but 1 time is also possible. I usually use two to three times leverage. Catching two opportunities can yield dozens of times returns, right? If worse comes to worst, you can use 0.x leverage. What does this have to do with rolling positions? This is clearly a matter of your own choice of leverage. I have never said you should operate with high leverage.
I have always emphasized that in the crypto world, only invest one-fifth of your money and only invest one-tenth of your capital in spot trading to play futures. At this point, the funds in futures only account for 2% of your total funds, and you should use two to three times leverage. Only trade Bitcoin, which can significantly reduce risks.
If you lose 20,000 out of 1 million, would you be upset?
Always being leveraged is not interesting. People often say that rolling positions are risky and that making money is just good luck. They say this not to convince you, as convincing others is pointless. I just hope that like-minded traders 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 filled with risks; risks can be mitigated with capital management. For example, I have a futures account with 200,000, and my spot account ranges from 300,000 to over 100,000. If the opportunity is great, I will invest more; if not, I’ll invest less.
With good luck, you can earn over 10 million RMB in a year, which is completely enough. In the worst-case scenario, if the futures account blows up, it doesn't matter. The spot profits can compensate for the futures liquidation losses. After compensating, you can rush in again. Can you really not earn a penny from spot trading in a year? I'm not that bad.
You can not make money but cannot lose money. I have blown up my account a long time ago, and I often save a quarter or a fifth of my earnings separately. Even if I blow up, I will still retain part of the profits.
As an ordinary person, my personal suggestion is to use one-tenth of your spot position to play futures. For example, if you have 300,000, just use 30,000 to play. If you blow up, then rush in with the profits from spot trading. After you blow up 10 or 8 times, you will understand some insights. If you still haven’t figured it out, then don’t play. This industry is not suitable for you.
▼ How to grow a small capital
Many people have many misconceptions about trading. For example, they think that small capital should engage in short-term trading to grow capital, which is a complete misconception. This kind of thinking is an attempt to exchange time for space, hoping to get rich overnight. Small capital should actually focus on medium to long-term trading to grow wealth.
Is a piece of paper thin enough? If you fold a piece of paper 27 times, it becomes 13 kilometers thick. If you fold it 10 more times to 37 folds, it becomes thicker than the Earth. If you fold it 105 times, the entire universe would not be able to contain it.
If you have 30,000 RMB in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... This way, you can have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this way, you'll eventually lose everything.
Always remember, the smaller the capital, the more you should focus on long-term trading. Rely on compounding to grow wealth, and don’t engage in short-term trading for small profits.
