In the crypto world, you need to find a way to earn 1,000,000 in principal first, and the only way to earn 1,000,000 from a few tens of thousands is one path.

That is rolling positions.

When you have 1,000,000 in capital, you will find that your whole life seems different. Even if you don’t use leverage, just holding spot positions will appreciate.

20% yields 200,000, which is already the annual income ceiling for most people.

And when you can grow from tens of thousands to 1,000,000, you will get to understand some thoughts and logic for making big money. At this time, your mindset will also calm down a lot, and you will just need to copy and paste afterwards.

Don’t always think about millions or hundreds of millions. Start from your actual situation. Those who only boast are just comfortable in their own bubble. Trading requires the ability to identify the scale of opportunities; you cannot always trade with small positions or large positions. Usually, play with small positions, and when big opportunities come, then bring out the heavy artillery.

For example, rolling positions should only be operated when big opportunities come; you cannot keep rolling. Missing out is fine because you only need to roll successfully three or four times in your life to go from zero to tens of millions, which is enough for an average person to upgrade.

The ranks of wealthy individuals.

Points to note for rolling positions:

1. Enough patience. The profit from rolling positions is enormous. As long as you can roll successfully a few times, you can make at least tens of millions to hundreds of millions.

You cannot roll positions easily; you need to find high-certainty opportunities.

2. High-certainty opportunities refer to situations where there is a sharp decline followed by sideways movement, and then an upward breakout. The probability of following the trend at this time is very high.

Find the right point of trend reversal; you need to get on board from the very beginning.

3. Only roll long;

Rolling positions risk

Let’s talk about the rolling positions strategy. Many people think this is risky. I can tell you that the risk is very low, far lower than the logical risks of trading futures.

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

If you open a position at 10,000 for Bitcoin with 10 times leverage, using a staggered position mode, and only opening 10% of the position, it means you only use 5,000 as margin. This is actually equivalent to 1 times leverage. With a 2% stop loss, if you hit the stop loss, you will only lose 2%. Only 2%? 1,000. How do those who get liquidated end up getting liquidated? Even if you get liquidated, isn’t it just a loss of 5,000? How can you lose everything?

If you are correct and Bitcoin rises to 11,000, you continue to open 10% of your total capital, similarly setting a 2% stop loss. If you hit the stop loss, you still earn 8%. What about the risk? Isn't it said that the risk is very high? And so on...

If Bitcoin rises to 15,000 and you successfully increase your position, you should be able to make around 200,000 in this 50% market wave. Catching two such market waves would amount to about 1,000,000.

There is fundamentally no compound interest; 100 times is achieved through two rounds of 10 times, three rounds of 5 times, and four rounds of 3 times, not through daily or monthly compound interest of 10% or 20%. That’s nonsense.

This content not only has operational logic but also contains the core internal skills of trading, position management. As long as you understand position management, you can’t lose everything.

This is just an example; the general meaning is like this. The specific details still require you to ponder more.

The concept of rolling positions itself carries no risk; not only does it have no risk, but it is also one of the correct ideas for futures trading. The risk lies in leverage. You can roll with 10 times leverage, or with 1 time as well. I usually use two to three times; grabbing two opportunities is the same as making dozens of times in profit. If worse comes to worst, you can use 0.x times leverage. What does this have to do with rolling positions? This is clearly your own choice of leverage; I never said to use high leverage for trading.

Moreover, I always emphasize that in the crypto world, you should only invest one-fifth of your money and only one-tenth of your cash in futures. At this time, the futures capital only occupies 2% of your total capital, and you should only use two to three times leverage, and only trade Bitcoin. You could say that this reduces the risk to an extremely low level.

Would you care if 20,000 is lost from 1,000,000?

Always leveraging is not interesting. People always say rolling positions are risky, and that making money is just about luck. Saying these things is not meant to convince you; convincing others is meaningless. I just hope that people with the same trading philosophy can play together.

Currently, there is no screening mechanism, and there are always harsh voices appearing, disturbing the recognition of those who want to understand.

Capital management

Trading is not filled with risks; risks can be mitigated through capital management. For example, I have 200,000 in my futures account, and my spot account ranges from 300,000 to 1,000,000, depending on opportunities. If the opportunity is great, I put in more; if there’s no opportunity, I put in less.

With good luck, you can earn more than 10 million RMB in a year, which is quite enough. If luck is bad and the worst-case scenario occurs where the futures account is wiped out, it doesn’t matter. The profits from spot trading can compensate for the losses from the futures liquidation. After compensating, you can still reinvest. Can spot trading really not make a penny in a year? I haven’t reached that level yet.

You may not make money, but you cannot lose money. I have not been liquidated for a long time, and in futures, I often take out one-fourth or one-fifth of my profits separately for saving. Even if I get liquidated, I will still retain part of the profits.

As an ordinary person, my personal advice is to use one-tenth of your cash position to trade futures. For example, if you have 300,000, then use 30,000 to trade. Once exposed, put the profits from spot trading back in. After blowing up ten or eight times, you will definitely grasp some insights. If you still can’t grasp it, then don’t trade; you are not suited for this field.

▼ How to grow small funds

Many people have many misconceptions about trading. For example, they think that small funds should trade short-term to grow their capital. This is a complete misconception. This kind of thinking is simply trying to exchange time for space in hopes of getting rich overnight. Small funds should focus on medium to long-term trading to grow.

Is a piece of paper thin enough? If a piece of paper is folded 27 times, it is 13 kilometers thick. If folded 10 more times, it reaches 37 times; the thickness exceeds that of the Earth. If folded 105 times, the entire universe cannot 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’ll have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... doing this will eventually lead to your downfall.

Always remember, the smaller the capital, the more you should focus on long-term trading, relying on doubling through compound interest to grow. Don’t do short-term trading to earn trivial profits.$BTC $ETH #BTC再创新高 #CPI数据来袭