#Tony is an early internet celebrity in the cryptocurrency space, belonging to the same era of Weibo super influencers as Liangxi and Hanbalongwang. In 2021, with a capital of 50,000 yuan, he made a profit of 20 million yuan in a year through high-leverage trading and rolling strategies. While there are many internet celebrities who earn millions online, Tony is fundamentally different from them; if compared, he is somewhat similar to a wizard.

What is rolling positions?

In simple terms, rolling positions means using small funds to try multiple times, leveraging high leverage to double profits in a successful market trend. Although this process seems exciting, the core lies in risk control, accurate judgment, and strict execution.

Case Study: Rolling from $300 to tens of thousands of dollars

Assuming you have $300 (about 2000 RMB), taking out $10 for each order and choosing 100 times leverage—this means that a 1% rise or fall will bring a 100 times return or loss.

The key to trading is to firm up the direction (bullish or bearish), make judgments before placing orders, and execute strictly. If experiencing continuous losses dozens of times, it may indicate a wrong direction, and one should pause to reflect or even temporarily withdraw from the market.

If you operate for the 20th time, and the market moves as expected, a 1% rise or fall can turn $10 into $20. At this point, take out $10 profit, and continue to invest the remaining $20; this is called 'rolling positions.'

If you encounter a 1% rise or fall again, turning $20 into $40, the cumulative rise and fall is about 2%, and the capital has quadrupled. Following this strategy, with the common 10% rise and fall of Bitcoin in a month, the capital could quickly roll to several thousand or even tens of thousands of dollars.

Setting clear goals

An important principle of rolling positions is to set clear goals. For example, when earning $5000 or $10000, stop trading, take profits, and reduce risks. This locks in profits and avoids liquidation due to greed in pursuing larger targets.

Greed often leads to tragedy: failing to take profits in time and continuing to roll positions may lead to liquidation due to a wrong judgment, wasting previous efforts. Therefore, controlling desire and setting profit-taking points are key to safe trading.

When should one start rolling positions again?

When rolling positions earns tens of thousands of dollars, you can choose to wait for a clear market trend (such as a major rise and fall cycle of a certain cryptocurrency), and then use $500 as capital to take $10 for 100 times leverage operations each time. With patience, if a one-sided market occurs, it may yield several times or even dozens of times returns within a few days.

But it should be noted that such opportunities are rare, and one may need to wait several months or even a year or two. Moreover, fluctuations in the market and false breakouts can bring unknown 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 always face liquidation in contract trading, mainly due to:

Cannot help but frequently open positions, ignoring the overall market trend;

Lack of patience, wanting to make a lot of money in a short time, unwilling to wait for the right opportunity;

Having a trading plan but not strictly adhering to it, emotional trading ultimately leads to liquidation.

In contract trading, greed and impulsiveness are the worst enemies; plans must be strictly followed, otherwise it could lead to liquidation or even bankruptcy.

Summary

Rolling positions is a high-risk, high-reward strategy suitable for disciplined and patient investors. It can leverage small funds for larger returns, but the premise is accurate market judgment, strict execution of plans, and not being greedy. If these principles can be controlled, rolling positions can indeed be an effective method for quickly accumulating capital.#币圈