Recently, during a market crash, Liangxi made 10 million by shorting with 10,000 yuan.
Everyone is short, so why is only Liangxi making so much money? The answer is rolling positions.
When talking about rolling positions, one person must be mentioned: Tony. Many people may not know him, but he made 20 million yuan in one year with a 50,000 yuan principal five years ago.
Tony's rolling position manual is regarded as a trading bible by many.
Who is Tony
Early internet celebrities in the cryptocurrency world, you may have heard of Liangxi and Hanbalongwang. But they actually belong to the same era of super internet celebrities on Weibo as Tony.
In 2021, Master Tony turned a principal of 50,000 yuan into 20 million yuan in profit within a year through high leverage trading and rolling positions.
On the internet, there are countless internet celebrities who have made tens of millions, but Tony is fundamentally different from these people. If I were to compare one person, I feel that the Wizard is very similar to Tony.
What is rolling positions
Rolling positions, in simple terms, is using small funds to try multiple times, achieving double profits through high leverage in a successful market trend. Although the process sounds exciting, the core is actually risk control, accurate judgment, and strict execution.
▪️ Case study: Rolling from 300 dollars to tens of thousands of dollars
Assuming you have 300 dollars (about 2000 yuan), use this money to roll positions. You only take out 10 dollars each time to open a position, choosing 100 times leverage. That’s right, 100 times leverage! This means any 1% increase or decrease will be magnified into 100 times profit or loss.
First, the key is to be firm in your direction—are you bullish or bearish? Before placing an order, you must make a judgment and have the execution power, without casually changing your direction. If you lose dozens of times in a row, it means your direction may be wrong, and it’s best to stop and reflect, and you may even need to temporarily exit the market and wait for a trend reversal.
But suppose you operate to the 20th time, and the market finally moves in the direction you expected. As long as the price rises or falls by 1%, you will earn 20 dollars from your 10 dollars. Next, you withdraw 10 dollars as profit, and continue to invest the remaining 20 dollars. This process is called 'rolling positions.'
If another 1% rise or fall occurs, 20 dollars will become 40 dollars. At this stage, the cumulative increase or decrease has reached about 2%, and your capital has quadrupled. Continuing this strategy, amidst the common 10% fluctuations in Bitcoin over a month, you may quickly roll your principal into thousands or even tens of thousands of dollars.
▪️ Set clear goals
An important principle of rolling positions is to set clear goals. For example, when you earn 5,000 dollars or 10,000 dollars, stop rolling positions, take out profits, and reduce risks. This strategy helps you lock in gains and avoid being overly greedy in pursuit of larger goals, which could lead to liquidation in the end.
The consequence of greed: If you do not take profits in time and continue rolling positions, you may ultimately face liquidation due to a wrong judgment, rendering all your previous efforts in vain. Therefore, controlling your desires and setting profit-taking points is always the key to safe trading.
▪️ When should you restart rolling positions?
When you've already made tens of thousands of dollars through rolling positions, you can choose to stop and wait. Wait for a clearer market trend, such as a major price cycle of a certain cryptocurrency. At this time, you can continue to use 500 dollars as principal, still using 10 dollars for 100 times leverage. By patiently waiting, once a unilateral trend appears, it may give you the opportunity to achieve several times or even dozens of times returns within a few days.
However, it should be noted that such opportunities are not common; you may need several months or even a year or two to encounter a real big market. Moreover, the ups and downs in the market and false breakthroughs can expose you to many unpredictable risks. Therefore, the success of rolling positions relies not only on accurate judgment but also requires a lot of patience and self-discipline.
Many people playing contracts always face liquidation.
In summary, the reasons boil down to the following points:
Can't resist the urge: Always wanting to open positions, frequent operations, neglecting the overall market trend.
Lack of patience: Always thinking about making big money in a short time, but unwilling to wait for a suitable opportunity.
Do not execute the plan: Although there is a trading plan, it is not strictly followed in practice, leading to emotional trading and ultimately liquidation.
When trading contracts, the biggest taboo is greed and impulsiveness. You need to strictly execute your trading plan, even if market fluctuations make you eager, you must firmly control yourself. Otherwise, the final result will certainly be liquidation, or even bankruptcy.
Summary
As a high-risk high-reward strategy, rolling positions are suitable for investors with strong self-discipline and patience. Through rolling positions, you can leverage small funds to achieve larger returns, but the premise is that you must accurately judge the market and strictly execute the plan without being greedy. If you can manage these principles well, rolling positions can indeed be a good way to quickly accumulate funds.
