During the previous market crash, Liangxi made a short position with $10,000 and earned $10 million.
Everyone is shorting, why did only Liangxi make so much money? The answer is rolling.
When mentioning rolling, one person must be mentioned: Tony. Many people may not recognize him, but he turned $50,000 into $20 million in a year five years ago.
Tony's rolling guide is regarded as the trading bible by many.
Who is Tony?
Early internet celebrities in the crypto world, you may have heard of Liangxi and Hanbalongwang. But actually, they belong to the same era of super influencers as Tony.
In 2021, Master Tony turned a capital of 50,000 yuan into a profit of 20 million yuan in a year through high-leverage trading and rolling strategies.
On the internet, there are countless influencers who have made millions, but Tony is fundamentally different from these people. If I had to compare, I feel that Master and Tony are very similar.
What is rolling?
Rolling, in simple terms, is using small funds to attempt multiple times and achieve double profits through high leverage in a successful market trend. While the process sounds exciting, the core is actually risk control, precise judgment, and strict execution.
Case Study: Rolling from $300 to tens of thousands of dollars
Suppose you have $300 (about 2000 RMB) to roll. You only take out $10 each time to open a position, choosing 100x leverage. Yes, 100x leverage! This means any 1% increase or decrease will magnify to 100 times the profit or loss.
First, the key is to firmly determine your direction - are you bullish or bearish? Before placing an order, you must make a judgment and have the execution power, without changing direction casually. If you lose dozens of times in a row, it may indicate that your direction is 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 market 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. Next, you take out $10 as profit, and reinvest the remaining $20. This process is called 'rolling'.
If another 1% price movement occurs, $20 will become $40. At this stage, the price fluctuation has accumulated to about 2%, and your capital has quadrupled. Continuing this strategy, in a typical month with a 10% price fluctuation for Bitcoin, you could quickly roll your capital to several thousand 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, take out your 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 a margin call.
The consequences of greed: If you don't take profits in time and continue to roll your position, you may end up with a margin call due to a misjudgment, rendering all your previous efforts meaningless. Therefore, controlling your desires and setting profit-taking points is always the key to safe trading.
When should you start rolling again?
When you have earned tens of thousands of dollars through rolling, 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 point, you can continue to use $500 as your capital, still taking $10 to operate with 100x leverage. By patiently waiting, once a one-sided trend appears, it may give you the opportunity to achieve several times or even dozens of times the return 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 real big market. Moreover, the ups and downs in the market and false breakouts can expose you to many unpredictable risks. Therefore, successful rolling operations depend not only on accurate judgment but also on a lot of patience and self-discipline.
Many people often face margin calls when trading contracts.
In summary, the reasons are as follows:
Can't resist: Always wanting to open positions, frequently trading, ignoring the overall market trend.
Lack of patience: Always thinking about making a lot of money in a short time, but unwilling to wait for a suitable opportunity.
Not following the plan: Although there is a trading plan, not strictly adhering to it in practice leads to emotional trading and ultimately a margin call.
In contract trading, the biggest taboos are greed and impulsiveness. You need to strictly follow your trading plan; even when market fluctuations make you anxious, you must firmly control your actions. Otherwise, the final result will definitely be a margin call, or even losing everything.
Rolling, as a high-risk, high-reward strategy, is suitable for investors with strong self-discipline and patience. Through rolling, you can leverage small capital to achieve larger returns, but the prerequisite is that you must accurately judge the market and strictly execute your plan without being greedy. If you can control these principles, rolling is indeed a good way to accumulate funds quickly.
Only engage in real trades; the team still has positions to get in quickly.
