Speaking of 'rolling positions', many people equate it with 'high risk', but this is a huge misunderstanding. Compared to the regular contract trading, the risk of rolling positions is actually much lower—yet there's a prerequisite: if you are currently stuck in a loss, don't rush to engage; if you are trying with 50,000, it’s best that this money is already your realized profit, so you can stay calm.
How to play specifically? Let's take Bitcoin as an example. For instance, opening a position at 10,000, choosing 10x leverage and a per-order mode, only using 10% of the position—which is 5,000 as margin—actually operates as if you are using 1x leverage while strictly maintaining a 2% stop loss. Even if the stop loss is triggered, you only lose 2% (1,000); even if you blow up the account in the worst case, the most you lose is this 5,000, and your principal remains untouched, which is very stable.
If your judgment is correct, and Bitcoin rises to 11,000, then increase your position by 10% of your total capital, with a stop loss set at 2%. Even if you hit the stop loss this time, you can still retain 8% of the previous profits. Just take it step by step. When Bitcoin rises to 15,000 and the position increase goes smoothly, a 50% movement can yield a profit of 200,000; catching two such opportunities makes 1,000,000 a dream within reach.
Here we need to debunk a misconception: if you want to grow your capital quickly, it is not based on the fantasy of '10% daily, 20% monthly'—that's pure illusion. The real key is to seize a few market movements that can double your capital: two times at 10x, three times at 5x, four times at 3x, and the snowball just keeps getting bigger.
So, the core of rolling positions is not 'rolling', but the 'internal skills' of position management. If you control the position well, the principal cannot be entirely lost. Of course, this is just an example; the nuances inside need to be slowly figured out by yourself.
Some say rolling positions are risky; the issue is not with the concept itself—rolling positions can even be considered one of the legitimate ways in futures trading. The real risk lies in leverage choices. 10x can roll, 1x can also roll; I often use two or three times leverage, and by catching two market movements, I can still multiply my capital by tens; even using 0.x leverage, the logic of rolling positions still holds. The level of leverage is merely a personal choice and has no relation to rolling positions themselves.
Let me emphasize the old rule again: in the currency circle, the proportion of funds must be strictly controlled. Only use one-fifth of your funds to enter, and the money used for contracts should be at most one-tenth of the spot—put simply, contract funds only account for 2% of total funds. Using two or three times leverage to focus on Bitcoin, how low can the risk be? For example, if you lose 20,000 from 1,000,000, do you feel hurt?
There are always people questioning 'rolling positions rely on luck' and 'risk cannot be controlled at all'. I'm not trying to persuade anyone; I just want to find some people who agree with this logic to chat. The market has mixed voices, and there are inevitably differing opinions; please be understanding.
In the end, it's still the four words 'capital management' that are most crucial. Trading itself doesn't necessarily carry risk; risk can be mitigated through capital management. Take myself as an example: I keep 200,000 in my contract account, while the spot account flexibly adjusts between 300,000 and over a million—invest more during big opportunities and less during small ones.
When luck is on your side, you can earn over 10 million RMB in a year, enough to spend; if luck is at its worst, even if the contract account blows up, the profits from spot can make up for it, and you can start over—after all, you can't possibly not make a single profit in a year from spot trading, can you?
My principle is 'it's okay not to earn, but absolutely no losses', so I haven't experienced the taste of blowing up for a long time. Plus, when I make money from contracts, I often take out one-fourth to one-fifth to set aside separately; even if the account blows up, I can still retain some profits as a base.
The advice for ordinary people is simple: use one-tenth of your spot position to trade contracts. For instance, if you have 300,000 in spot, take 30,000 to speculate on contracts. If you blow up, use the profits from your spot to replenish. If you blow up a dozen times and still haven't figured it out, this field may not be suitable for you.
Finally, let's talk about 'how to roll small funds into big ones'. Many people have a misconception: they think that with little money, they must do short-term trading to grow quickly. This is essentially trying to trade time for space, fixated on getting rich overnight, which is a big mistake. Small funds should actually focus on medium to long-term strategies to grow in scale.
For example: is a piece of paper thin enough? If you fold it 27 times, its thickness can reach 13 kilometers; if you fold it 37 times, it can exceed the Earth's diameter; if you fold it 105 times, it can even surpass the universe. Capital growth follows the same principle: if you have 30,000 as the principal, and if you can triple it once, and then triple it again, you can quickly roll it up to 400,000 or 500,000. Always thinking about making 10% every day or 20% tomorrow can lead to losing big for small gains, picking sesame seeds and dropping watermelons.
Remember: the smaller the capital, the more you should focus on long-term; rely on the compounding effect of doubling to gradually grow larger, and don't fixate on those meager short-term gains.
There are always people saying 'trading contracts is risky' and citing examples like 'someone lost 20 million and jumped off a building.' But the risk is never in the contract itself, but in the person. Contracts can be traded with 'no risk' while maintaining a stable mindset; it really depends on how you play:
1. Use other people's money to earn your own money, letting clients bear the risk while you face zero risk. Just like Buffett, Soros, and other traders, as well as various funds, it essentially follows this route (although 90% of private equity funds actually do not outperform the market). There are also agents and service providers in the currency circle, but the prerequisite is to establish a reputation first, which is not easy.
2. Use profits to trade contracts. For example, invest 200,000 to buy spot, and after half a year earn 50,000, then use this 50,000 to speculate on contracts; even if you lose it all, the loss is merely the profit, and the principal remains intact—where is the risk in that?
Ultimately, many people cannot control their greed; when they lose money, they blame contracts for being 'too dangerous'. The contract itself won't 'kill'; what truly leads to loss of control is always that beast called 'desire' within themselves.
