What is rolling positions?
Rolling positions = using small amounts of money, repeatedly attacking, explosively growing funds in a wave of market.
Sounds like gambling? No, it's a combination of controllable risk control + high execution + market judgment.
The key points are two:
1) The direction must be accurate
Rolling positions is not betting on fate; it’s betting on your understanding of market trends.
If you choose the right direction, flipping the position is just a matter of time.
2) Discipline must be strict.
Only use part of the principal to trade, and use the rest to 'revive';
Take profits when you make money, cut losses when you lose, don't be greedy, don't get carried away, don't move randomly.
Who is suitable for rolling positions?
• Small capital, but want to carve a path through technology.
• Willing to spend time observing the market, reviewing, and executing.
• Able to endure and resist temptation.
The suggestion is:
• Set a goal: for example, if it reaches 10,000 USDT, stop immediately.
• Take out profits, keep only a small position to continue.
• Preserving profits is more important than anything else.
Three major reasons for frequent liquidation in contracts (must self-check):
1. Can't control hands: checking the market every day, wanting to jump in at every fluctuation, with a mindset completely led by the market.
2. No plan: Wanting to make quick money but haven't clearly written down stop-loss and take-profit levels.
3. Not disciplined enough: made a plan, but when the market arrives, forget everything and directly trade based on emotions.
There is only one outcome: liquidation, returning to zero.
Not everyone is suitable, but if you can remain calm + have execution power + accurately judge direction, then rolling positions can truly be the path for ordinary people to turn their fortunes around.
Finally, share a ten-minute guide to understanding the core techniques of trading coins - a must-read for newcomers to avoid pitfalls.
One, first clarify whether you are investing or speculating.
Many newcomers in the crypto space enter the market calling themselves 'investors', which sounds impressive, but what you might be doing is 'speculation'.
The distinction is simple:
• Investment: Long-term holding, earning dividends and long-term value returns, such as shareholder dividends or holding shares of quality companies.
• Speculation: Short-term in and out, relying on buying low and selling high or selling high and buying low to earn the difference, with little relation to the long-term development of the project.
If you want to invest, choose a project you believe in, give your money to the project team, and then wait patiently; don't worry too much about the ups and downs.
But if you want to trade coins, you must recognize the reality - we are speculating, relying on market fluctuations to make money, not getting romantically involved with the projects.
Two, how to view the market so as not to get lost.
Since it's speculation, the goal is to understand price fluctuations and find opportunities.
There are many variations of technical analysis, but they all revolve around four core elements: price, trading volume, time, and news, essentially studying one thing - human nature.
1. Price (K line)
A K line records the opening price, closing price, highest price, and lowest price for a certain period.
• The upper and lower ends of the candle body represent the opening and closing prices.
• The upper shadow line is the highest transaction price during that period.
• The lower shadow line is the lowest transaction price
Note:
In domestic markets, red generally represents rising, and green represents falling; however, in foreign markets and the common systems used in cryptocurrencies, it is the opposite - red means falling and green means rising, so be careful not to confuse them when observing the market.
2. Trading volume
The columns at the bottom of the trading interface represent trading volume. The higher the column, the more active trading during that period. Trading volume, combined with price changes, can judge the true strength of the market.
3. Moving Average (MA)
By averaging the closing prices of several periods and connecting them with a line, you get the moving average.
• Short-term moving average crosses above long-term moving average → bullish trend
• Short-term moving average crosses below long-term moving average → bearish trend
Many traders rely on a single moving average for their livelihood; almost all complex indicators are derived from it.
4. MACD
A trend indicator that is slightly more complex than a moving average can judge the strength of the market and potential reversals.
• Short-term moving average crosses above long-term moving average → bullish
• Short-term moving average crosses below long-term moving average → bearish.
• Special cases are 'top divergence' and 'bottom divergence', which have relatively high hit rates but are not suitable for volatile markets.
Three, the truth of technical indicators
KDJ, BOLL, RSI, W&R... These indicator names sound impressive, but they all revolve around one fact - their calculation is essentially mathematical, and mathematics cannot perfectly portray human nature.
I used to be obsessed with various indicators and wrote over a hundred quantitative strategies, with backtest accuracy reaching 90%, but once I entered real market conditions, the effectiveness began to deteriorate.
Some simple indicators may only have a 60% success rate, but when combined with money management, they can handle most market situations.
Many top quantitative trading systems are similar - huge amounts of code, countless models, but the actual performance is far from stable as imagined. The reason is simple: human nature is the biggest variable; any indicator can only approach it but cannot predict it completely.
Four, the correct way to open technical analysis
Technical indicators are not a universal holy grail, but they can help us:
• Filter out some uncertain market conditions.
• Provide reference basis for buying and selling.
• Make decisions more structured rather than relying on emotions.
My suggestion is:
1. Choose 1-2 simple, easy-to-understand indicators and use them repeatedly.
2. Combine price and trading volume, first learn to judge trends.
3. Don't be dazzled by flashy indicators; indicators are just aids, execution is the core.
Conclusion
The key to making money in the crypto space is not finding a 'surefire' indicator, but understanding the logic behind the indicators and combining them with money management and execution discipline.
Remember this: predicting the market is not important; executing correctly is the key.
