Why can others make a fortune in the contract market while you keep blowing up your account and end up with nothing? You don't still think this is a matter of luck, do you?
In fact, this is not a matter of luck at all, but because you haven't really understood 'rolling positions'!
I've seen too many people lose everything after just a few trades:
They rush to close positions when the market goes up a little, missing out on big market movements.
When the market crashes, they desperately increase their positions, and in the end, they blow up their accounts and lose everything.
Even when they are right about the direction, they panic and exit at the slightest pullback.
It seems like bad luck, but actually, it's the wrong method! Those who truly understand rolling positions do the opposite, steady and secure. Today, I will reveal this 'door' to you!
First point, the common misconceptions about rolling positions:
Many people hear 'rolling positions' and immediately think: 'Add to winning positions, go all-in, get rich overnight!'
What’s the result? They fall into a pit at the first pullback and lose everything.
True rolling positions are like this:
Always protect your principal, do not use your principal for mindless position increases.
Only add to positions when breaking through key levels.
You can only use floating profits to add to positions; if the trend reverses, you lose profits, not your principal.
Most people get it wrong: bottom fishing, averaging down, and end up losing everything.
Second point, the inverted pyramid rolling position method:
Suppose you have 10,000 U as principal, and the market is about to crash; how should you operate?
Phase One: Start with a small position, using 500 U with 100x leverage, and set a stop loss at 2%.
Phase Two: When you profit by 50%, use 50% of the floating profit to add to your position; if it falls below the previous low, continue to add using the remaining floating profit.
Phase Three: Once your floating profit exceeds your principal, start implementing hedge protection, so market fluctuations no longer easily affect you.
You can profit even from a 30% crash, turning 10,000 U into 48,000 U, achieving a stable compound interest effect, multiplying your funds several times.
You might think rolling positions are a bit complicated, but the essence is to use floating profits to roll positions while protecting your principal. Don't blindly increase positions; maintaining the trend is the key.
To make money, it's not just about luck; the main thing is a good strategy and discipline.
The market rewards those who follow the rules, and opportunities are always there. As long as you master the correct method, turning the tables will no longer be a dream!
If you still don't know how to operate, follow K, who will teach you how to understand rolling positions.