Let's talk about the rolling position strategy. Many people think this is risky, but I can tell you the risk is very low, much lower than the logic of the contracts you are playing.

If you only have $50,000, how do you start with it? First, this $50,000 should be your profit. If you are still losing, then don’t look.

If you open a position in Bitcoin at $10,000 with a leverage of 10 times and use isolated margin mode, only opening 10% of the position, you would only open $5,000 as margin. This is actually equivalent to 1 times leverage with a 2% stop loss. If you hit the stop loss, you only lose 2%, just 2%? That's $1,000. How do those who get liquidated even end up losing everything? Even if you are liquidated, isn't it just a $5,000 loss? How can it be all gone?

If you are correct, and Bitcoin rises to $11,000, you continue to open 10% of your total capital, also setting a 2% stop loss. If you hit the stop loss, you still earn 8%. Where's the risk? Didn't they say the risk is very high? And so on...

If Bitcoin rises to $15,000 and you add to your position successfully, during a 50% market movement, you could earn around $200,000. Seizing two such market movements would yield around $1 million.

There is no such thing as compounding interest here; 100 times is achieved through two instances of 10 times, three instances of 5 times, and four instances of 3 times earning, not through daily or monthly compounding of 10% or 20%. That's nonsense.

This content not only has operational logic but also contains the core internal strategies of trading, which is position management. As long as you understand position management, you will never lose everything.

This is just an example; the general idea is like this, but the specific details need to be pondered over by yourself.

The concept of rolling positions itself has no risk; not only is it risk-free, but it is also one of the most correct strategies in futures trading. The risk comes from leverage. You can roll with 10 times leverage or with 1 time; I usually use two or three times leverage. Capturing two such movements could yield dozens of times returns. If worst comes to worst, you could even use less than one time leverage. What does that have to do with rolling positions? This is clearly a matter of your own choice of leverage; I have never said to use high leverage for trading.

Moreover, I always emphasize that in the cryptocurrency market, you should only invest one-fifth of your money, and only one-tenth of your spot money in contracts. At this point, the funds in contracts only account for 2% of your total capital. Use only two or three times leverage and only trade Bitcoin, which can be said to significantly reduce risk.

Would you feel heartbroken if you lost $20,000 out of $1,000,000?

Always leveraging is meaningless; people keep saying rolling positions are risky. They say making money is just luck. I don't say this to convince you; convincing others is pointless. I just hope that people with the same trading philosophy can play together.

There is currently no screening mechanism, and there will always be jarring voices that interfere with the recognition of those who want to see.

▼ Money Management

Trading is not full of risks; risks can be mitigated through money management. For example, I have a contract account with $200,000, and a spot account ranging from $300,000 to over $1,000,000 randomly. If there are great opportunities, I invest more; if there are no opportunities, I invest less.

With good luck, you can earn over 10 million RMB in a year, which is quite sufficient. With bad luck, the worst-case scenario is that your contract account gets liquidated, but it doesn't matter; the profits from spot trading can compensate for the losses from liquidation. After compensating, you can reinvest. Isn't it possible that you wouldn't earn a penny from spot trading in a year? I'm not that incompetent.

You can not make money, but you cannot lose money. That's why I've been liquidated for a long time. Moreover, I often save a quarter or one-fifth of my earnings separately when trading contracts, so even if I expose my profits, a portion will be retained.

As an ordinary person, my personal advice is to use one-tenth of your spot position to trade contracts. For example, if you have $300,000, use $30,000 to trade. If you get liquidated, use the profits from spot trading to cover the losses. After you have been liquidated ten or eight times, you will surely grasp some insights. If you haven't grasped anything, then don’t trade; this isn’t the right industry for you.

▼ How to Grow Small Funds

Many people have misconceptions about trading. For instance, they believe that small funds should engage in short-term trading to grow their capital. This is a complete misconception; this way of thinking is merely trying to exchange time for space, hoping to get rich overnight. Small funds should actually focus on medium to long-term trading to grow.

Is a piece of paper thin enough? If you fold a piece of paper 27 times, it will be 13 kilometers thick. If you fold it 10 more times, it would be folded 37 times, and it would be thicker than the Earth. If you could fold it 105 times, the entire universe wouldn't be able to contain it.

If you have $30,000 in capital, you should think about how to triple it in one wave, then triple it again in the next wave... then you would have $400,000 or $500,000. Instead of thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.

Always remember, the smaller the funds, the more you should focus on long-term investments. Rely on doubling your capital through compounding to grow; don't engage in short-term trading for trivial profits.

▼ How to Achieve No Risk in Contracts

There are always people saying that trading contracts is risky, mentioning someone who jumped off a building after losing 20 million. The ones who are really at risk are people, not the contracts. Contracts can indeed be traded without risk, and you can maintain a good mindset.

1: Use other people's money to earn your own money; the clients bear the risk, so you have no risk at all. For instance, Buffett, Simons, Soros, Zhang Lei—aren't all funds operating under this model? Most famous traders do this, but in reality, 90% of private equity funds cannot outperform the market. The cryptocurrency market also has many services offering managed trading, but this is relatively difficult; the premise is that you need to become famous first.

2. Use profits to trade. For instance, invest $200,000 in spot trading. If you make a profit in six months, take $50,000 and use it for contracts. If you lose it, it’s just profit lost; it doesn't matter. Where's the risk in that?

You can't blame the contracts for being risky just because you can't control yourself. Contracts don't kill people; your own greed does.