Many of you started with small funds; no one starts with large funds or all their possessions to trade cryptocurrencies.
Next, I want to talk about this knowledge point—rolling positions.
How to roll positions:
In the crypto world, you need to find a way to earn 1 million in capital first, and the only way to turn a few thousand into 1 million is...
That's rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you don’t use leverage, just holding spot assets as they rise.
20%, that’s 200K. 200K is already the income ceiling for most people in a year.
When you can grow your capital from a few thousand to 100K, you will also grasp some thoughts and logic on making big money. At this point, your mindset will calm down a lot, and moving forward, it’s just about copying and pasting.
Don't always think about millions or billions; start from your actual situation. Bragging only makes you feel good. Trading requires the ability to recognize the size of opportunities; you can't always trade lightly or heavily. Usually, trade with small positions, and when a big opportunity arises, then you can bring out the big guns.
For example, rolling positions should only be done when a big opportunity arises. You cannot keep rolling; it’s okay to miss out. Because in your lifetime, you only need to roll successfully three or four times to grow from zero to tens of millions. Tens of millions are enough for an ordinary person to level up.
Into the ranks of wealthy people.
Points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions are immense. As long as you can roll successfully a few times, you can earn at least tens of millions to over a billion.
You should not roll easily; look for high certainty opportunities.
2. High probability opportunities refer to a significant drop followed by sideways movement and then an upward breakout. At this time, the probability of following the trend is very high.
Identify the points of trend reversal and get on board right from the start.
3. Only roll long positions;
▼ Rolling position risks
Let’s talk about rolling position strategies. Many people think this is risky; I can tell you, the risk is very low, far lower than the logic of opening futures contracts.
If you only have 50K, think about how to start with that 50K. First, this 50K should be your profit. If you are still losing money, then don’t look at it.
If you open a position at 10K for Bitcoin with 10x leverage, using a margin mode of only opening 10% of the position, that equals using 1x leverage. With a 2% stop loss, if you hit the stop loss, you would only lose 2%, just 2%? 1000 bucks. How do those who get liquidated actually get liquidated? Even if you get liquidated, okay, you would only lose 5K, right? How could you lose everything?
If you are correct and Bitcoin rises to 11K, you continue to open 10% of total funds, setting a stop loss at 2%. If you hit the stop loss, you still earn 8%. Where's the risk? Isn’t it said that the risk is very high? And so on...
If Bitcoin rises to 15K and you add to your position smoothly, in this wave of 50% market movement, you should be able to make around 200K. Catching two such waves could lead to around 1 million.
Compound interest does not fundamentally exist; 100 times is achieved through two 10 times, three 5 times, four 3 times. It’s not about compounding 10% or 20% every day or month. That’s nonsense.
This content not only has operational logic, but also contains the core trading principles and 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 specific details need to be pondered independently.
The concept of rolling positions itself is not risky; not only is it not risky, but it is also one of the most correct strategies in futures trading. The risk lies in leverage. You can roll with 10x leverage, and you can also do it with 1x. I usually use two to three times leverage. Catching two opportunities can yield dozens of times returns, right? At worst, you can use 0. something leverage. What does that have to do with rolling positions? This is clearly a matter of your own choice of leverage, and I have never said to use high leverage for trading.
Moreover, I have always emphasized that in the crypto world, only invest one-fifth of your funds, and only one-tenth of that for futures trading. At this point, the funds for futures should only account for 2% of your total funds, and use only two to three times leverage, focusing solely on Bitcoin, which can significantly reduce risk.
If you lose 20K from 1 million, would you feel heartbroken?
If you always use leverage, it becomes meaningless. Some people say that rolling positions is risky, and that making money is just good luck. I’m not saying this to convince you; persuading others is pointless. I just hope to find like-minded traders to play together.
Currently, there is no filtering mechanism; there are always harsh voices appearing that disrupt the recognition of those who want to see.
▼ Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For example, I have a futures account of 200K, and a spot account ranging from 300K to 1 million randomly. When opportunities are abundant, I inject more; when there are fewer opportunities, I inject less.
If you are lucky, you can earn over 10 million RMB in a year, which is more than enough. If you are unlucky, in the worst-case scenario, your futures account gets liquidated. It doesn’t matter; the profits from spot trading can cover the losses from futures liquidation. Once covered, you can reinvest. Can’t you earn even a penny from spot trading in a year? I’m not that bad.
You may not make money, but you cannot lose money, so I have had a long time since I was completely liquidated. I often save one-fourth or one-fifth of my profits from futures trading separately, and even if I lose everything, I will retain some profits.
As an ordinary person, my personal advice is to use one-tenth of your spot position to trade futures. For example, if you have 300K, use 30K for trading. If you do lose, put the profits back into spot trading. After you have been liquidated 10 to 8 times, you will definitely grasp some insights. If you haven't figured it out yet, then don't trade, as this industry may not be suitable for you.
▼ How small funds can grow large
Many people have misconceptions about trading, for example, thinking that small funds should trade short-term to grow their capital. This is a complete misconception; this mindset is essentially trying to exchange time for space, hoping to get rich overnight. Smaller funds should focus on mid to long-term strategies to achieve significant growth.
Is a piece of paper thin enough? If a piece of paper is folded 27 times, it becomes 13 kilometers thick. If folded 10 more times, it will be thicker than the Earth. If folded 105 times, the entire universe cannot contain it.
If you have 30K in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... that way you will have 400K to 500K. Instead of thinking about making 10% today and 20% tomorrow... this way you will eventually get yourself killed.
Always remember, with smaller funds, you should focus on long-term investments and leverage compound interest to grow your capital, rather than making short-term trades for small profits.
It's better to enjoy together than to enjoy alone. If you reach out, I can help you get to the shore!
SUI TURMP BONK PEPE OM SOL PNUT
