In the crypto world, you need to find a way to earn 1 million capital first. To grow from a few thousand to 1 million, there is only one way.
That is rolling positions.
Once you have a capital of 1 million, you will find that your whole life seems different. Even if you don't use leverage, just holding on to spot when prices rise.
20% would yield 200,000; 200,000 is already the ceiling of annual income for most people.
Moreover, when you can grow from a few thousand to 1 million, you will also grasp some ideas and logic for making big money. At that time, your mindset will calm down a lot, and then it's just about copying and pasting.
Don't always talk about millions or hundreds of millions; you need to start from your own actual situation. Blowing your own horn only makes you feel good. Trading requires the ability to identify the size of opportunities; you can't always play with light positions or always go heavy. Normally, play with small positions; when a big opportunity comes, then bring out the big guns.
For example, rolling positions can only be done when a big opportunity comes. You cannot keep rolling; missing out is okay because you only need to successfully roll three or four times in your life to go from zero to tens of millions, which is enough for an ordinary person to level up.
It's the ranks of the money people.
A few points to pay attention to when rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can successfully roll a few times, you can make at least tens of millions or even hundreds of millions.
You cannot roll easily; you need to find high certainty opportunities;
2. A high certainty opportunity refers to a sideways consolidation after a sharp drop followed by an upward breakout. The probability of following the trend at this time is very high.
Find the point of trend reversal and get in the car right from the start.
3. Only roll long positions;
Rolling position risks
Let’s talk about rolling position strategies. Many people think this has risks, but I can tell you that the risk is very low and much lower than the logic you are using for futures trading.
If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit. If you are still losing, then don’t look at it.
If you open a position in Bitcoin at 10,000 with 10 times leverage, using a scaled position mode, opening only 10% of the position, it means opening 5,000 as margin, which is actually equivalent to 1x leverage, with a stop loss of 2%. If you stop-loss, you only lose 2%, just 2%? 1,000. How did those who were liquidated get liquidated? Even if you are liquidated, isn’t it only a loss of 5,000? How can you lose everything?
If you are correct, and Bitcoin rises to 11,000, you continue to open 10% of your total funds, also setting a stop loss of 2%. If you hit the stop loss, you still earn 8%. What about the risk? Isn’t it said that the risk is very large? And so forth...
If Bitcoin rises to 15,000 and you add positions smoothly, during this 50% market movement, you should be able to earn about 200,000. If you catch two such market movements, it's about 1 million.
There is no such thing as compound interest; 100 times is earned through two 10 times, three 5 times, four 3 times, not by compounding 10% or 20% every day or month. That's nonsense.
This content not only has operational logic but also contains the core skills of trading, position management. As long as you understand position management, you can never lose everything.
This is just an example, the general idea is like this, specific details still need to be pondered over by yourself.
The concept of rolling positions itself has no risk; not only is there no risk, but it's also one of the correct ways to trade futures. The risk comes from leverage. You can roll with 10x leverage, 1x is also fine, but I usually use two to three times. If you catch it twice, isn’t that the same as dozens of times the return? At worst, you can use 0. something times, what does that have to do with rolling positions? This is clearly your own choice of leverage; I have never said to use high leverage to operate.
Moreover, I have always emphasized that in the crypto circle, only invest one fifth of your money, and only invest one tenth of your spot money in futures. At this time, the funds for futures only account for 2% of your total capital, and I only use two to three times leverage, only playing Bitcoin. This can be said to reduce the risk to an extremely low level.
Would you be heartbroken if 20,000 of 1 million were lost?
Always leveraging is not interesting. There are always people saying that rolling positions are risky, and that making money is just good luck. Saying these is not to convince you; convincing others is meaningless. I just hope that those with similar trading philosophies can play together.
However, there is currently no filtering mechanism, and there are always harsh voices that interfere with the recognition of those who want to watch.
Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For example, I have a futures account of 200,000 and a spot account ranging from 300,000 to over 1 million. When a big opportunity arises, I invest more; when there is no opportunity, I invest less.
With good luck, you can earn over 10 million RMB in a year, which is quite a lot. With bad luck, in the worst case, the futures account gets liquidated. That’s okay; the profits from spot can compensate for the losses from futures liquidation. After compensating, you can reinvest. Isn’t it impossible to earn a single penny from spot in a year? I'm not that bad.
You can not make money but you cannot lose money, so I have been liquidated for a long time. I often save a quarter or a fifth of my profits separately when trading futures, and even if I lose, I will retain part of the profit.
As an ordinary person, my personal advice is to use one tenth of the position of your spot capital to play futures. For example, with 300,000, take 30,000 to play. If exposed, use the spot profit to enter; after you have been liquidated eight to ten times, you can grasp some internal paths. If you still can't grasp it, don't play, this industry is not suitable for you.
▼ How to grow small capital
Many people have many misconceptions about trading; for example, they think small capital should do short-term trading to grow the capital. This is completely a misconception. This kind of thinking is to try to exchange time for space, hoping to get rich overnight. Small capital should do medium to long-term trading to grow.
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 to 37 times, it would be thicker than the Earth. If you fold it 105 times, the entire universe cannot contain it.
If you have 30,000 capital, you should think about how to triple it in one go, and then triple it again in the next wave... this way you will have 400,000 to 500,000. Instead of thinking about making 10% today and 20% tomorrow... this way you will end up ruining yourself sooner or later.
Always remember, the smaller the capital, the more you should focus on the long term, using doubling compound interest to grow, not short-term trades for small profits.
