How to roll positions:
In the crypto world, you need to find a way to first earn 1 million in capital. The only way to earn 1 million from tens of thousands is:
That is rolling positions. But the risk is relatively greater! (Operate with caution)
When you have 1 million in capital, you will find that your entire life seems to be different. Even if you don't use leverage, holding spot during a rise is profitable.
20%, then you have 200,000. 200,000 is already the income ceiling for most people in a year.
And when you can grow from tens of thousands to 100,000, you will also grasp some ideas and logic for making big money. At this point, your mentality will also calm down a lot, and from then on it will just be copy and paste.
Don't always think about millions or a billion. Start from your actual situation; boasting only makes the cow comfortable. Trading requires the ability to identify the size of opportunities; you can't always play with small positions, nor can you always go heavy. Usually, play with small positions, and when a big opportunity comes, then bring out the big guns.
For example, rolling positions can only be operated when big opportunities come. You cannot always roll; missing out is fine because you only need to successfully roll three or four times in your lifetime to go from 0 to tens of millions. Tens of millions is enough for an ordinary person to upgrade.
The ranks of wealthy individuals.
A few points to note about rolling positions:
1. Enough patience; the profits from rolling positions are huge. As long as you can successfully roll a few times, you can at least make tens of millions or even hundreds of millions.
You need to find high certainty opportunities instead of rolling easily;
2. High certainty opportunities refer to sideways consolidation after a sharp drop, then breaking upwards. The probability of following the trend at this time is very high.
Find the point of trend reversal; you need to get on the train from the very beginning.
3. Only roll long;
▼ Rolling Position Risks
Let's talk about rolling position strategies. Many people think this is risky. I can tell you, the risk is very low, much lower than the logic of opening futures positions.
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 anymore.
If you open a position in Bitcoin at 10,000, set the leverage to 10 times, and use a partial position mode, only opening 10% of the position, then you are only using 5,000 as margin. This is actually equivalent to 1x leverage, with a 2% stop loss. If you stop out, you will only lose 2%, just 2%, right? 1,000. How do those who get liquidated get liquidated? Even if you get liquidated, isn't it just losing 5,000? How can you lose everything?
If you are correct, and Bitcoin rises to 11,000, you continue to open 10% of the total capital. Similarly, set a 2% stop loss. If you stop out, you still earn 8%. What about the risk? Didn’t they say the risk is very high? And so on...
If Bitcoin rises to 15,000, and you successfully increase your position, in this wave of 50% market, you should be able to earn around 200,000. Grabbing two such opportunities is around 1 million.
There is no such thing as compound interest; 100 times is made by two 10 times, three 5 times, and four 3 times profits, not by compounding 10% or 20% daily or monthly. That’s nonsense.
This content not only has operational logic but also contains the core internal principles of trading, position management. As long as you understand position management, you cannot lose everything.
This is just an example. The general idea is like this; the specific details need your own contemplation.
The concept of rolling positions itself does not carry risk; not only is there no risk, but it is also one of the most correct ideas in futures. The risk comes from leverage. You can roll with 10x leverage or even 1x; generally, I use two or three times leverage. Grabbing two opportunities is the same as getting dozens of times the return, right? If worse comes to worst, you can use 0.x leverage. What does this have to do with rolling positions? This is clearly your own choice regarding leverage. I have never said to let you operate with high leverage.
Moreover, it is always emphasized that in the crypto circle, only invest one-fifth of your money, and only invest one-tenth of your spot money to play futures. At this time, the futures funds only account for 2% of your total funds, and only use two or three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level.
Will you feel pain if you lose 20,000 out of 1 million?
Always using leverage is meaningless. People often say rolling positions are risky, that making money is just having good luck. Saying these things is not to convince you; convincing others is meaningless. I just hope that people with the same trading philosophy can play together.
It's just that there is currently no filtering mechanism, and there are always discordant voices appearing, interfering with the recognition of those who want to watch.
▼ Capital Management
Trading is not full of risks; risks can be resolved through capital management. For example, I have a futures account with 200,000, and a spot account ranging from 300,000 to 1,000,000+. If there are big opportunities, invest more, if not, invest less.
With good luck, you can earn over 10 million RMB in a year, which is more than enough. If luck is bad and the worst-case scenario is that the futures account gets liquidated, it doesn't matter. The spot profits can compensate for the losses from the futures liquidation. After compensating, you can invest again. Is it really impossible to earn even a penny from spot trading in a year? I am not that bad.
You can not make money, but you cannot lose money. So I haven't been liquidated for a long time. Moreover, in futures, I often save a quarter or one-fifth of my profits separately. Even if I get liquidated, I will still retain some profits.
As an ordinary person, my personal advice is to take one-tenth of your spot position to play futures. For example, if you have 300,000, take 30,000 to play. If you get liquidated, then invest the profits from the spot into it. After you have been liquidated ten or eight times, you will definitely grasp some insights. If you haven't grasped it yet, then don't play; this industry is not suitable for you.
▼ How small funds can grow
Many people have misconceptions about trading, such as thinking that small funds should do short-term trades to increase capital. This is a complete misconception. This kind of thinking is just trying to exchange time for space, attempting to get rich overnight. Small funds should do medium to long-term trades to grow.
Is one sheet of paper thin enough? If you fold a piece of paper 27 times, it is 13 kilometers thick. If you fold it 10 more times, folding it to 37 times, it would be thicker than the Earth. If you fold it 105 times, the entire universe would not be able to contain it.
If you have a capital of 30,000, you should think about how to triple it in one wave, then triple it again in the next wave... This way, you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... This will eventually lead to your demise.
Always remember, the smaller the capital, the more you should do long-term; rely on doubling with compound interest to grow. Don’t do short-term trades to earn small profits.
