Let me tell you a story. When I lost the most, my contract was liquidated for 8 million in 3 days. I was heavily in debt and almost broke up my family and almost committed suicide, but the currency circle is so magical. By chance, I was guided by an expert and realized the true meaning of starting from scratch and doing full-time trading on a stormy night. I became a professional currency speculator and worked hard on technology, studying and learning for thousands of days and nights!
The road to the currency circle is long, may everyone take fewer detours and have fewer tragedies! I have achieved financial freedom and have been insisting on creating on Zhihu. In fact, many people don't understand why I have achieved financial freedom and earned a few small goals, and I still have to do these things?
I also asked myself the same question. In the process of finding my original intention, on the one hand, it was for my heroic dream. I dedicated everything I had to trading. I didn't want anyone to know or witness it even if I had practiced peerless martial arts!
On the other hand, I want to give a way to those who are willing to learn. I get it from the market, and now I am also in the process of giving back to the market. The Tao follows nature. I remember that I struggled for half a year because of the issue of how many times the leverage was.
There is no path to refer to and learn along the way. I can only review the K-line again and again, one by one, and I have come to this day after stumbling and crawling for many days and nights. I deeply know the difficulties of retail investors and novices in the currency circle and can feel more empathy!
Since the Federal Reserve cut interest rates, many newcomers have flooded into the crypto world. The crypto world is a place of natural selection, where the fittest survive. The barrier to entry is low; anyone can enter, but not everyone can make money in the crypto world.
If you plan to enter the currency circle, please be sure to remember that the currency circle is not a place to get rich overnight, but an area that requires long-term accumulation and continuous learning.
Many people come to the currency circle with the dream of getting rich overnight, fantasizing about earning 1 million principal from a few thousand yuan. Of course, not no one has succeeded, but in most cases it can only be achieved through "rolling positions." Although rolling positions are a theoretically feasible way, it is by no means an easy road.
Rolling position is a strategy suitable for use when a big opportunity arises, and does not require frequent operations. As long as you seize a few such opportunities in your life, you can accumulate from zero to tens of millions. And tens of millions of assets are enough to make an ordinary person enter the ranks of the rich and achieve financial freedom.
When you really want to make money, don't think about how much money you want to make, how to make so much money, or even think about those goals of tens of millions or even hundreds of millions. Instead, start from your actual situation and spend more time settling down. Empty talk will not bring us substantial changes. The key to trading is to identify the size of the opportunity. Don't always use a small position, and don't always use a heavy position.
You can practice with small amounts of money during normal times, and then go all out when the real big opportunity comes. When you truly go from tens of thousands of yuan to 1 million yuan, you will have unconsciously learned some ideas and logic for making big money. At this time, your mentality will become more stable, and future operations will be more like a repetition of past successes.
If you want to learn how to roll positions, or you want to learn how to go from a few thousand to millions, then you should read the following content carefully.
I. Determine the Timing of Rolling Position
Rolling positions are not something you can do whenever you want. You also need certain background and conditions to have a higher chance of winning. The following four situations are most suitable for rolling positions:
(I) Breakout after a long period of sideways trading: When the market has been in a sideways state for a long time and the volatility drops to a new low, once the market chooses a breakout direction, you can consider using a rolling position at this time.
(II) Buying the Dip During a Bull Market: In a bull market, if the market experiences a significant surge followed by a sudden dip, you can consider using a rolling position strategy to buy the dip.
(III) Weekly Chart Breakout: When the market breaks through a major resistance or support level on the weekly chart, you can consider using a rolling position to seize the breakout opportunity.
(IV) Market sentiment and news events: When market sentiment is generally optimistic or pessimistic, and there are major news events or policy changes that may affect the market in the near future, you can consider using a rolling position operation.
Rolling positions are more likely to win only in the above four situations. At other times, you should operate cautiously or give up the opportunity. But if the market seems suitable for rolling positions, you also need to strictly control risks and set stop-loss points to prevent potential losses.
II. Technical Analysis
After you confirm that the market meets the rolling position conditions, the next step is to conduct technical analysis. First, you must confirm the trend and use technical indicators to determine the direction, such as moving averages, MACD, RSI, etc. If possible, combine multiple technical indicators to confirm the trend direction, after all, it's always good to prepare more.
Secondly, identify key support and resistance levels and determine the validity of the breakout. Finally, use divergence signals to capture reversal opportunities. (Divergence signal: When the price of a certain coin makes a new high, but the MACD does not make a new high, forming a top divergence, indicating that the price will rebound, you can reduce your position or short; similarly, when the price makes a new low, but the MACD does not make a new low, forming a bottom divergence, indicating that the price will rebound, you can increase your position or long.)
III. Position Management
After doing this, it's time for position management. Reasonable position management includes three key steps: determining the initial position, setting rules for increasing positions, and developing strategies for reducing positions. I'll give an example to help everyone understand the specific operations of these three steps:
Initial position: If my total funds are 1 million yuan, then the initial position should not exceed 10%, which is 100,000 yuan.
Position increase rule: You must wait for the price to break through a key resistance level before increasing your position. Each time you increase your position, it should not exceed 50% of the original position, that is, a maximum of 50,000 yuan.
Position reduction strategy: Gradually reduce positions after the price reaches the expected profit target. Don't be entangled when it's time to let go. Each position reduction should not exceed 30% of the existing position to gradually lock in profits.
In fact, as ordinary people, we should recharge more when there are big opportunities and recharge less when there are few opportunities. If we are lucky, we can make millions. If we are unlucky, we can only accept it. But I still want to remind you that when you make money, you should withdraw the principal you invested, and then use the part you earned to play. You can't make money, but you can't lose money.
IV. Adjusting Holdings
After completing position management, it is the most critical step, which is how to achieve rolling position operations through position adjustments.
The operation steps are undoubtedly those few steps:
1. Choose the timing: Enter the market when the market meets the rolling position conditions.
2. Open position: Open a position based on technical analysis signals and choose the appropriate entry point.
3. Increase Position: Gradually increase position as the market continues to develop in a favorable direction.
4. Reduce position: Gradually reduce position when the predetermined profit target is reached or the market shows reverse signals.
5. Close Position: When the take-profit target is reached or the market shows obvious reversal signals, completely close the position.
Here I will share with you my specific operations for rolling positions:
(I) Adding positions with floating profits: When the invested assets appreciate, you can consider adding positions to buy, but the premise is to ensure that the cost of holding positions has been reduced, thereby reducing the risk of loss. This does not mean that you have to add positions every time you make money, but to do so at the right time, such as adding positions in a converging breakout market in a trend, and quickly reducing them after the breakout, or adding positions when the trend is retracing.
(II) Base position + T: Divide the assets into two parts, one part remains unchanged as the base position, and the other part is used for buying and selling when the market price fluctuates to reduce costs and increase income. The following three ratios can be used as a reference:
1. Half-position Rolling: Half of the funds are used for long-term holding, and the other half is used for buying and selling when prices fluctuate.
2. Thirty percent base position: 30% of the funds are held long-term, and the remaining 70% is used to buy and sell when prices fluctuate.
3. Seventy percent base position: 70% of the funds are held long-term, and the remaining 30% is used to buy and sell when prices fluctuate.
The purpose of doing this is to optimize the cost of holding positions while maintaining a certain position by using short-term fluctuations in the market.
V. Risk Management
Risk management is mainly divided into two parts: controlling the total position and allocating funds.
Be sure to ensure that the overall position does not exceed the affordable risk range. Allocate funds reasonably and do not invest all funds in a single operation. Of course, you must also monitor in real time, pay close attention to market dynamics and changes in technical indicators, and flexibly adjust according to market changes, and stop losses or adjust positions in time when necessary.
Many people feel scared and eager to try when they hear about giving rolling positions. They want to try it but are afraid of the high risk. In fact, the risk of this strategy is not high in itself. The risk is leverage, but the risk is not very high if you use leverage reasonably. The currency circle is not as difficult as you think. If you are also a technology control and are also studying the technical operations in the currency circle
For example, if I have 10,000 principal, and I open a position when a certain coin is 1,000 yuan, I use 10x leverage, and only use 10% of the total funds (i.e., 1,000 yuan) as margin, which is actually equivalent to 1x leverage.
Set a 2% stop loss. If the stop loss is triggered, I will only lose 2% of this 1,000 yuan, which is 200 yuan. Even if the liquidation condition is eventually triggered, you will only lose this 1,000 yuan, not all the funds. Those who are liquidated often use higher leverage or larger positions, so that slight market fluctuations can trigger liquidation.
But according to this method, even if the market is unfavorable, your losses are limited. So 20x can be rolled, 30x can be rolled, then 3x can also be rolled. If it doesn't work, you can use 0.5x. Any multiple of leverage is fine; the key is to use it reasonably and control the position reasonably.
The above is the basic process of using rolling positions. Friends who want to learn can watch it several times and think about it carefully. Of course, there will be different opinions, but I only share experience and do not persuade others.
So how can small funds become big?
I have to mention the compound interest effect here. Imagine if you have a coin and its value doubles every day, then after a month, its value will become extremely amazing. The value doubles on the first day, then doubles again on the second day, and so on. The final result will be astronomical. This is the power of the compound interest effect. Even if it is just a small amount of money at the beginning, it can grow to tens of millions after a long time of continuous doubling.
For friends who want to enter the market with small funds, I suggest that you focus on big goals. Many people think that small funds should be used for frequent short-term trading to achieve rapid appreciation, but it is actually more suitable for medium and long-term trading. Compared with making small profits every day, you should focus on achieving several times the growth for each transaction. The unit should be times, exponential growth.
For positions, first of all, you must know how to diversify risks and not concentrate all your funds in one transaction. You can divide your funds into three or four parts, and only use one of them for trading each time. If you have 40,000 yuan, divide it into 4 parts and use 10,000 yuan for trading. Secondly, use leverage appropriately. My personal suggestion is that Bitcoin and Ethereum should not use more than 10x, and altcoins should not use more than 4x.
Furthermore, you have to adjust dynamically. If you lose, supplement the equivalent amount of funds from outside. If you earn, withdraw appropriately. Just don't let yourself lose. Finally, you have to increase your position, of course, this is on the premise that you are already profitable. When your funds grow to a certain level, you can slowly increase the amount of each transaction, but don't add too much at once; transition slowly.
I believe that with reasonable position management and sound trading strategies, small funds can gradually achieve significant appreciation. The key is to patiently wait for the right opportunities and focus on the big goals of each trade, rather than small daily profits. Of course, I've also been liquidated, but I had spot income to compensate for my losses. I don't believe you haven't made any money with your spot holdings. My futures only account for 2% of my total funds, so I won't lose everything no matter how much I lose, and the amount of loss is always within my controllable range. Finally, I hope each of us can accumulate wealth and make hundreds of millions.
Okay, let's talk about it here today. In future investments, if you want to improve your learning efficiency in the encryption circle and Web3, welcome to follow me and join an excellent investment team. Keep up with the pulse of the market and seize the bull market opportunities. Success comes from wise choices and strategies, not accidental luck.
Follow me, you have already taken an important step on the road to success!
In the past few years, I have gone from a principal of 10,000 to 10 million U. This road is full of training and experience. The following are some key experiences I have summarized, and I hope they will inspire you:
1. Fund Management + is the cornerstone of success
Divide the funds into five parts, only use one-fifth each time, and set a strict stop loss line +--the loss per order does not exceed 10%, total funds
Keep losses within 2%. Even with five consecutive mistakes, the total loss is only 10%, but once you seize the opportunity, the profit can often easily cover the loss.
2. Go with the flow, don't go against the current.
Don't rush to buy the dip during a fall. Most of the time, it's a bull trap. Wait patiently for a clearer signal.
Don't rush to sell during the rise. This may be a "golden pit." Buying on dips is more stable and reliable than bottom-fishing.
3. Stay away from coins that have skyrocketed in the short term
Whether it is mainstream coins or altcoins, there are very few coins that continue to skyrocket. Most will fall into stagnation or even callback after a sharp rise. Do not gamble on the miracle of high-level skyrocketing with luck.
4. Make good use of technical indicators
MACD+ is a practical tool: Consider buying when the DIF line and DEA line cross above the 0 axis and break through the 0 axis; conversely, consider reducing positions when crossing below and moving downward above the 0 axis.
Replenishment of position should be organized: never replenish position when losing, only add position appropriately when profitable, otherwise you may get deeper and deeper.
5. Trading volume + is the soul of the coin market
Pay attention to low-level breakout with volume, which is an important market signal.
Stick to only trading coins in an upward trend. Observe the 3-day, 30-day, 84-day, and 120-day moving averages +. A turn upward often means that the trend is established.
6. Review + Strategy Adjustment +
After each transaction, do a review, re-examine the logic of holding positions, and flexibly adjust your operating strategy in conjunction with the weekly K-line trend.
Share some iron rules of the currency circle:
I. Only participate in irreversible upward trends in the market.
"Only participate in irreversible upward trends in the market." The market is the fact, and the market cannot be questioned or challenged. The trend is irreversible. As an investor, you must dare to admit mistakes, correct mistakes at any time, reject uncertain market conditions, and do those market conditions that the dealer must also follow. You must know how to go with the flow.
II. Reject frequent trading
Casinos are open 24 hours a day; there is no need to open orders frequently. There are many logics here, such as timing, trial and error, and position control. We advocate waiting patiently for the perfect opportunity like a hunter, rather than investing randomly by firing a shot when you see prey.
III. Do not blindly believe in technical indicators
First of all, we must admit that any technical indicator has its lag.
For example, when the MACD indicator sends a golden cross buying signal, the coin has actually risen a wave, and when the golden cross appears, you are likely to be the one taking over!
IV. Forget the cost price after buying
When you start shorting or longing, its cost price has nothing to do with any subsequent operations, because whether to sell depends on the market trend, and it has nothing to do with whether you are still profitable now. Continue to hold if the shape is good, reduce your position or even clear your position if the shape is bad.
V. Participate with funds you can afford to lose.
Use spare money to speculate in coins. All investments are risky. Investors can increase their investment funds after mastering the tricks to profit from the game. Before that, be sure to participate with funds that you can afford to lose. Lending money often results in miserable losses!
VI. Cash out on time when you have profits.
Nothing is real until you withdraw it. Crypto investors are like gamblers who haven't left the casino. Even if they temporarily earn a lot of money, they can't be considered winners. Only when you withdraw cash from the market can you say you had the last laugh. In the crypto world, withdrawing money on time is a good habit.
A super simple way to speculate in coins, operating repeatedly, can earn from 200,000 to 10 million, does it sound a little incredible?
Actually, those who lose money often haven't found the right approach. To make money, the key is to find a method that suits you and practice it a lot. Maybe one day the numbers in your account will skyrocket. That's what my senior said, and I always remember it. The trick I used before was really simple and practical compared to other methods on the market.
When the market is trading sideways, let's wait and see, because there will often be big moves after sideways trading. When the situation becomes clear, we'll take action and make a sure profit.
Also, don't be too attached to popular positions; you have to change them frequently, or you might end up with nothing. Those short-term hot spots are all hyped up. Once the heat fades, the funds will run away. If you're even half a beat slow, you'll be left in the wind.
Let's talk about the rise again. If you see the K-line slowly climbing up, and it has a good start, and the trading volume is also increasing, it means that the market is about to accelerate. At this time, we must remain calm, hold on to the tickets, and there will definitely be big meat to eat later.
However, if you see a positive line with a particularly large trading volume, whether it is at a high level or a low level, you must withdraw quickly, even if it is at the daily limit. Why? Because we have to guard against the profit falling back.
There is also a little trick: buy online Yin lines and sell offline Yang lines, and admit mistakes. The line here refers to the moving average or important support and pressure levels. For short-term trading, I usually look at the daily line and the daily attack line. I don't like to dawdle, and I usually hold positions for no more than three days, at most a week. I won't be attached to it even if it gets better later.
In the crypto world, there's a basic principle: don't sell when prices are rising, don't buy when prices are plummeting, and stay steady during sideways trading.
Finally, prepare well before buying. It's better to buy a little less than to throw everything in at once. After all, in the currency circle, the only constant is change.
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