Today I learned about the rolling over method and calculated the return rate; my heart was racing nervously. I still don't think I'm suitable for rolling over.
The key to this method is predicting the market, and it is only suitable for one-sided markets. The declines in the cryptocurrency market are fast and fierce; bearish markets are more applicable than bullish markets. Rolling over requires a high ability to grasp timing. There are many opportunities for rolling over in the cryptocurrency market, but they are often fortuitous rather than sought after. The rolling over method in the cryptocurrency market is only suitable for use in extreme market conditions, especially in extreme bearish markets.
During the epic crash of the cryptocurrency market on May 19, 2021, the internet celebrity Liangxi became rich overnight and famous overnight by daring to short. Liangxi's short position went from 1000 yuan to 30 million through rolling over.
On May 11, 2022, the cryptocurrency known as 'the Moutai of the cryptocurrency circle', Luna, crashed. In just one month, Luna went from $119 to less than $0.0002, a staggering 99.99% drop, causing countless people to lose all their money overnight. This was also the best time to short Luna using rolling over.
On November 9, 2022, the cryptocurrency market experienced a major crisis. The global leading cryptocurrency exchange FTX, founded by SBF, and the hedge fund Alameda collapsed. Subsequently, the price of FTX's platform token FTT plummeted by over 90%, directly collapsing the entire virtual currency market. From midnight on November 9, the price of FTT fell sharply, dropping from a high of $17.71 to $4.6 in less than 3 hours, a decline of 74%. This was the best time to short FTT using rolling over.
Moreover, the last surge phase of Bitcoin in a bull market is the best time to roll over long. Conversely, the retracement phase at the peak of the bull market is the best time to roll over short.
Many friends still don't know what rolling over is, so let me repeat.
Rolling over is defined as 'small funds, high leverage, all in place, liquidation stop loss, add positions with floating profits.' Generally, a 10x leverage is chosen, and liquidation occurs at a 10% drop from the highest point.
The advantage is that in a one-sided market, it is the fastest way to achieve a hundredfold myth. After using rolling over, one no longer fears prices because there is only one peak in a bull market; no matter how much it retraces, it will rise again.
The downside is that it is a life-and-death gamble, effective only in a one-sided market. You must use small funds so that losses don't hurt too much. It mainly depends on opportunities; only a few perceptive friends can achieve great success.
The difficulty lies in the fact that when opportunities arise, it tests courage and mentality.
The reason for introducing the rolling over method only recently is that it is effective in a bull market with one-sided trends. The internet celebrity Liangxi became rich overnight after the 519 incident in the cryptocurrency market, only to realize later that it was the one-sided market that made him; a non-one-sided market destroyed him. Circumstances create heroes; the same method can have vastly different results in different markets. When the wind blows, even pigs will fly if they stand at the vent, but when the wind stops, those flying pigs will all fall.
Various difficult questions about the rolling over method.
How much capital is suitable for rolling over?
Rolling over is suitable for taking small funds, generally choosing an amount you can afford to lose, preferably not exceeding 10% of the principal.
Which varieties are suitable for rolling over?
Generally, rolling over is suitable for large-cap varieties that only rise and do not fall, and are not easily manipulated, such as Bitcoin, Ethereum, and US stock indices. Playing with altcoins carries higher risks.
What leverage should be chosen for rolling over?
Generally, 10x leverage is chosen, and liquidation occurs at a 10% drop from the highest point. The greater the leverage, the higher the risk.
How to operate rolling over in the cryptocurrency market?
Generally, the full position mode of contracts is chosen. If there are floating profits, they can be used as margin to add positions. Choosing the incremental position mode requires realizing profits before continuing to roll over.
When does rolling over require withdrawal?
When there are significant profits, you can first withdraw the principal, and later, when the profits are larger, you can withdraw some funds.
How powerful is rolling over?
Generally speaking, in a smooth one-sided market, if it rises by 50%, rolling over can yield profits up to 100 times.
Remember, the rolling over method is the fastest way to get rich. But it is only effective in a one-sided market, especially for small funds from retail investors. It is the fastest way to turn around and cross classes. If the retail investors want to learn, they might as well take out 100 oil to try it. Learning it will benefit you for life, and failing to learn will only result in a small loss.
The rolling over method can indeed lead to sudden wealth, but it is also very difficult and requires a very skilled person who can seize opportunities. Otherwise, if the leverage is not controlled well, a pullback can lead to total liquidation.
In simpler terms, rolling over means that the bold will get rich, while the timid will starve. If rolling over fails once, it's all over. No matter how much you earn beforehand, if you fail once, it’s over. The key is that rolling over can repeatedly crush your mentality. The difficulty lies in judging the large market. The literal meaning of rolling over is to keep rolling your position.
Friendly suggestion: When judging that the market is good, rolling over should also be used sparingly, rolling 2 to 3 times and then taking profit. We often hear the phrase 'add positions with floating profits,' but it is often followed by the phrase 'lose everything in one go.' Here, adding positions with floating profits does not mean mindless rolling over, but rather rolling over at critical moments.
The rolling over method, simply put, is 'small funds, high leverage, all in place, liquidation stop loss, add positions with floating profits.' The rolling over method is a life-and-death gamble; the vast majority of players will quickly lose everything, but in a one-sided market, it is the fastest way to achieve a hundredfold profit, which is the gateway to survival in a life-and-death situation, and it is said that circumstances create heroes.
However, the rolling over method is not easy to operate; it requires courage, timing, and personal insight. Remember the key points: use small funds to roll over, use trial and error opportunities often, use ten times leverage, and withdraw the principal first after doubling, etc.
In my free time, I picked up (Memoirs of a Stock Market Operator) and began to seriously study trading books, researching what the correct operation methods are, what seems correct but is actually wrong, and the pros and cons of each operation method, thereby creating a trading system that suits the characteristics of the cryptocurrency circle.
