Recently, during a sharp decline in the market, Liangxi made 10 million by shorting with 10,000.
Everyone is short, so why did only Liangxi earn so much? The answer is rolling over.
When it comes to rolling over, one person must be mentioned: Tony. Many may not recognize him, but he turned a capital of 50,000 into 20 million in a year five years ago.
Tony's rolling strategy has been regarded as a trading bible by many.
Who is Tony?
Early internet celebrities in the crypto circle, perhaps you've heard of Liangxi and Hanbalong Wang. But in fact, they and Tony belong to the same era of super internet celebrities on Weibo.
In 2021, Master Tony achieved a profit of 20 million within a year with a capital of 50,000 through high-leverage trading and rolling over strategy.
On the internet, there are countless internet celebrities who have made tens of millions, but Tony has a very significant difference from these people. If I had to compare someone, I feel the Wizard is very similar to Tony.
What is rolling over?
Rolling over, in simple terms, means using small funds to try multiple times, leveraging high margins to achieve double returns in a successful market. Although the process sounds thrilling, the core is actually about controlling risk, precise judgment, and strict execution.
▪️ Case sharing: Rolling from $300 to tens of thousands of dollars.
Suppose you have $300 (approximately 2000 RMB) and use this money for rolling over. You only take $10 for each order, choosing 100x leverage. Yes, 100x leverage! This means that any 1% rise or fall will be magnified to 100 times the profit or loss.
First, the key is to be firm in your direction—whether bullish or bearish. Before placing an order, you must make a judgment and have execution power, without casually changing direction. If you lose dozens of times in a row, it means your direction may be wrong; at this point, it's best to stop and reflect, and you may even need to temporarily exit the market and wait for a reversal.
But suppose you reach the 20th operation, and the market finally moves in the direction you expected. As long as the price rises or falls by 1%, you can earn $20 from $10. Then, you take out $10 as profit and reinvest the remaining $20. This process is called 'rolling over.'
If another 1% rise or fall occurs, $20 will become $40. At this stage, the cumulative fluctuation has reached about 2%, and your capital has quadrupled. Continuing this strategy, amidst Bitcoin's usual 10% fluctuations in a month, you could quickly roll your capital to thousands or even tens of thousands of dollars.
▪️ Set clear goals.
An important principle of rolling operations is to set clear goals. For example, when you earn $5,000 or $10,000, stop rolling over, take out your profits, and reduce risks. This strategy helps you lock in profits and avoid being too greedy in pursuit of larger goals, which could lead to liquidation.
The consequences of greed: If you do not take profits in time and continue to roll over, you may end up liquidating due to a single wrong judgment, rendering all your previous efforts futile. Therefore, controlling your desires and setting profit-taking points is always key to safe trading.
▪️ When should you start rolling over again?
When you have earned tens of thousands of dollars through rolling over, you can choose to stop and wait. Wait for a clearer market trend, such as a significant price cycle of a particular cryptocurrency. At this time, you can continue to use $500 as your capital, still taking $10 for 100x leverage operations. By patiently waiting, once a one-sided trend appears, it may provide you with opportunities to achieve several times or even dozens of times your returns within a few days.
But it should be noted that such opportunities are not common; you may need several months or even a year or two to encounter a truly big market movement. Moreover, the ups and downs in the market, as well as false breakouts, can expose you to many unpredictable risks. Therefore, the success of rolling over operations relies not only on precise judgment but also requires a lot of patience and self-discipline.
Many people fail in contract trading and always end up liquidated.
In summary, the reasons are mainly the following points:
Unable to control hands: always wanting to open positions, frequent operations, ignoring the overall market trend.
No patience: always thinking about making big money in a short time but unwilling to wait for a suitable opportunity.
Not executing the plan: Although there is a trading plan, failure to strictly follow it during actual operations leads to emotional trading and ultimately results in liquidation.
In contract trading, the most taboo things are greed and impulsiveness. You need to strictly follow your trading plan; even if market fluctuations make you anxious, you must resolutely control your hands. Otherwise, the final result will definitely be liquidation, or even losing everything.
Summary
Rolling over, as a high-risk high-return strategy, is suitable for investors with strong self-discipline and patience. Through rolling over, you can leverage small funds to achieve larger returns, but the premise is that you must accurately judge market conditions and strictly execute your plan without being greedy. If you can control these principles well, rolling over can indeed be a good way to quickly accumulate funds.