How can small capital trade to grow large? Many must have started with small capital; no one starts with large capital or all their belongings to speculate on coins.

The next point I want to discuss is - rolling positions.

How to roll positions:

In the cryptocurrency world, you need to find a way to earn $1,000,000 in capital first, and the only way to earn $1,000,000 from tens of thousands is...

That is rolling positions.

Once you have $1,000,000 in principal, you will find that your life seems to change. Even if you don’t use leverage, just with cash market rises...

20% means 200,000, which 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 also grasp some thoughts and logic for making big money. At this point, your mindset will also be much calmer, and from then on, it’s just about copying and pasting.

Don’t always think in terms of millions or even billions; start from your actual situation. Bragging only makes the bull comfortable. Trading requires the ability to identify the size of opportunities; you can’t always trade with small positions or always with heavy positions. Usually, trade small, and when a big opportunity comes, pull out the big guns.

For example, rolling positions can only be executed when big opportunities come. You can’t always roll; it's okay to miss a few because you only need to roll successfully three or four times in your lifetime to go from zero to tens of millions, which is enough for an ordinary person to level up.

The ranks of wealthy people.

A few points to note about rolling positions:

1. Enough patience. The profits from rolling positions are enormous; as long as you can roll successfully a few times, you can earn at least tens of millions to hundreds of millions.

You cannot easily roll; you need to find high certainty opportunities.

2. High certainty opportunities refer to a sharp drop followed by sideways consolidation, then a breakout upwards; the probability of a trend at this point is quite high.

Find the point of trend reversal and get on board right from the start.

3. Only roll long positions.

▼ Rolling Position Risks

Let's talk about the rolling position strategy. Many people think this carries risks, but I can tell you that the risk is very low, far lower than the logic of opening positions in futures.

If you only have $50,000, think about how to start with that amount. First, this $50,000 should be your profit. If you are still at a loss, then don’t even look at it.

If you open a position in Bitcoin at $10,000, with leverage set to 10 times, using the isolated margin mode, and only open 10% of the position, which means using $5,000 as margin, this is actually equivalent to 1-time leverage. With a 2% stop loss, if you hit the stop loss, you only lose 2%, which is $1,000. How do those who get liquidated end up losing everything? Even if you get liquidated, isn't it only a loss of $5,000? How can one lose everything?

If you are right and Bitcoin rises to $11,000, continue to open 10% of the total funds, setting a 2% stop loss. If you hit the stop loss, you still make 8%. Where's the risk? Isn’t it said that the risk is significant? And so on...

If Bitcoin rises to $15,000 and you successfully increase your position, during this 50% market movement, you should be able to earn around $200,000. If you catch two such movements, that's about $1,000,000.

There is no real compounding; 100 times is achieved through two 10 times, three 5 times, and four 3 times profits, not by compounding 10% or 20% every day or month. That's nonsense.

This content not only has operational logic but also contains the core inner workings of trading, which is 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 still need to be pondered by yourself.

The concept of rolling positions itself carries no risk. Not only is it risk-free, but it is also one of the most correct ideas for futures trading. The risk comes from leverage. You can roll with 10 times leverage, or even 1 time; I generally use two to three times leverage. Grabbing two opportunities can yield dozens of times in profits. At worst, you can use a fraction of leverage; this has nothing to do with rolling positions. This is clearly a matter of your choice of leverage, and I have never said to use high leverage for trading.

Moreover, I have always emphasized that in the cryptocurrency world, you should only invest one-fifth of your money, and only one-tenth of your cash for futures trading. At this point, futures funds only account for 2% of your total funds, and you should only use two to three times leverage, focusing only on Bitcoin, which can be said to reduce the risk to an extremely low level.

If you lose $20,000 from $1,000,000, will it hurt?

If you keep leveraging without purpose, it becomes meaningless. There are always people saying that rolling positions carry high risks, and that making money is just good luck. I’m not saying this to convince you or others; it’s meaningless to persuade others. I just hope that those who share the same trading ideology can play together.

Currently, there is no filtering mechanism, and there are always harsh voices that interfere with the recognition of those who want to understand.

▼ Capital Management

Trading is not entirely risky; risks can be mitigated through capital management. For example, I have a futures account with $200,000, and a cash account ranging from $300,000 to $1,000,000+. If opportunities are plentiful, I invest more; if not, I invest less.

With good luck, you can earn over 10 million RMB in a year, which is more than enough. With bad luck, in the worst-case scenario, your futures account may be wiped out, but it doesn't matter; the profits from the cash account can compensate for the losses from the futures liquidation. Once compensated, you can re-enter. Can’t you earn even a penny from cash in a year? I'm not that incompetent.

You can choose not to make money, but you cannot afford to lose. I haven’t been liquidated in a long time, and I often save a quarter or a fifth of the profits from futures separately. Even if I get liquidated, I will still retain some profits.

As an ordinary person, my personal advice is to use one-tenth of your cash position to trade futures. For example, if you have $300,000, use $30,000 for trading. When exposed, invest the profits from cash. After experiencing liquidation 10 or 8 times, you will surely grasp some insights. If you haven't figured it out yet, then don't trade; this industry may not suit you.

▼ How to Grow Small Capital

Many people have misconceptions about trading. For example, they think small capital should focus on short-term trading to grow capital quickly, which is completely misguided. This way of thinking is just trying to exchange time for space, aiming to get rich overnight. Small capital should focus on medium to long-term investments to grow.

Is a piece of paper thin enough? A piece of paper folded 27 times is 13 kilometers thick. If you fold it 10 more times up to 37 times, it's thicker than the Earth. If you fold it 105 times, the entire universe won't be able to contain it.

If you have $30,000 in principal, you should think about how to triple it in one wave, and then triple it again in the next wave... this way, you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.

Always remember, the smaller the capital, the more you should focus on long-term investments, relying on compounding to grow, instead of short-term trades to earn small profits.