What is the essence of rolling positions in the cryptocurrency market?
The essence of rolling positions in the cryptocurrency market is a high-risk, high-reward game.
The reason it can bring astonishing returns is not due to any special techniques, but rather the strategy of increasing positions with unrealized gains—keeping the position in a high-risk environment for a long time, thereby amplifying potential profits.
In general trading, after opening a position, if the price moves in the direction of profit, once it moves away from the cost price into the profit zone, the risk decreases rapidly.
However, rolling positions are different; profits do not reduce risk, but instead, due to continuous position increases, the position always maintains a state of high leverage and high volatility.
This extreme risk management approach is the fundamental reason why rolling positions can achieve high returns.
In the trading market, the principle that risk and return are proportional is a hard rule.
When you see someone making hundreds or even thousands of times on a single trade, you must be aware that there is a significant risk of total loss behind it; conversely, someone might make millions on a single trade, but considering their capital scale, it could just be an operation that is relatively low risk and suitable for their situation.
Therefore, the key to trading is to deeply understand risk; one cannot only look at returns. Only by balancing risk and return can one move steadily in the market.
