— Taught by crypto veterans: Low leverage + iron discipline, the 'snowball' rule for turning small funds into success!
One, rolling positions is not gambling with your life; it's 'rolling profits into a snowball'.
90% of people misunderstand rolling positions as 'increasing leverage for big bets'; the core is actually 'floating profit increases, risk locking'!
Underlying logic: Use the profits earned from the principal to expand the position, while the principal remains safe. For example, with a principal of 5,000 yuan and a 10x leverage rolling position model, only 10% of the funds (500 yuan) is used as margin, equivalent to 1x leverage (500 yuan × 10 = 5,000 yuan position). Set a 2% stop loss, with a maximum loss of 100 yuan, which has a minimal impact on the principal.
After earning, operate: Earn 10% (500 yuan), total funds become 5,500 yuan, then use 10% (550 yuan) to open a position, still at 1x leverage, stop loss at 2% (loss of 110 yuan). Even with a stop loss, total funds still remain at 5,390 yuan, making a profit of 390 yuan!
High leverage and using principal to increase positions in the 'pseudo rolling position' is essentially gambling, and will eventually lead to liquidation!
Two, the three lifelines of rolling positions: Hitting one can turn 5,000 into a million.
1. Leverage must be 'ridiculously low': 3x is the upper limit, 1-2x is safer.
2022 Retail Investor Case: Starting with 5000 yuan principal using 20x leverage, earned 3000 yuan the first time, but after increasing the position, encountered a spike and directly liquidated!
My advice: Initially use 1-2x leverage (33% volatility to liquidate), coupled with a 2% stop loss, allowing for a large margin of error; after 5 consecutive profitable trades, increase to 3x, and never touch 5x or more!
2. Position increases can only use 'floating profits': the principal is the trump card, never touch it.
Essence of rolling positions: 'Make money with the market's money'. For example, with a principal of 5,000 yuan, if the first profit is 1,000 yuan, total funds become 6,000 yuan, at this point, the maximum amount to increase the position can only be 1,000 yuan of floating profit; the principal of 5,000 yuan must not be touched!
Metaphor: The fisherman uses the fish he caught as bait; even if he doesn't catch new fish, he won't lose his fishing boat.
3. Stop losses must be 'ironclad and cold-blooded': 2% is the red line; cut losses immediately.
"Just wait a bit; maybe it will rebound"—this phrase can ruin all rolling position plans! Strictly control a single stop loss within 2% of total funds (losing 100 yuan on a 5,000 yuan principal); when the point is reached, cut losses immediately without any excuses!
2023 Case: Bitcoin rose from 30,000 to 40,000, I used 1x leverage to roll positions, with 3 stop losses in between, each losing 1,000-2,000 yuan, but ultimately 6 profitable trades tripled the total funds!
Three, from 5,000 to a million: Roll positions in 3 stages, with specific operations at each step.
First Stage: 5,000 → 50,000 (accumulate starting capital, practice feel).
Start with spot trading: Buy BTC and ETH at bear market lows (for example, when BTC drops to 16,000 in 2023), wait for a 10%-20% rebound before selling, and repeat 3-5 times to roll the funds to 20,000.
Practice with small leverage: When BTC breaks key resistance levels (like 20,000, 30,000), open long positions with 1x leverage; if you earn 10%, use 10% of the floating profit to increase the position, stop loss at 2%. Focus on practicing 'stop loss + floating profit increase' muscle memory, and complete at least 10 profitable trades before entering the next stage!
Second Stage: 50,000 → 300,000 (grasp trend market, amplify profits).
Operating in a certain trend: For example, when BTC's daily line stabilizes above the 30-day line and the trading volume increases by more than 3 times, roll positions only after confirming the upward trend (like after the BTC ETF is approved in January 2024).
Position increase ratio: For every 15% profit, use 30% of the floating profit to increase the position (e.g., if 50,000 earns 15% to 57,500, take out 2,250 to increase the position), keeping the total position within 20% of the principal.
Profit-taking strategy: Take 20% profit for every 50% rise (e.g., from 50,000 to 100,000, withdraw 20,000 cash), lock in profits to avoid the 'profit retraction' psychological collapse.
Third Stage: 300,000 → 1,000,000 (relying on macro trends to earn 'era dividends').
Wait for historic opportunities: For example, Bitcoin rises from the bear market bottom (15,000) to mid-bull market (60,000); this level of trend can amplify rolling positions to over 10 times the return (during the 2020-2021 bull market, some rolled 300,000 to 5 million).
Dynamically adjust positions: At the beginning of the trend, keep positions at 10%-20%; in the mid-term, increase to 30%-40%; later reduce back to 10% (e.g., if BTC rises from 30,000 to 60,000, use 30,000 at the beginning, increase to 60,000 at 40,000, then reduce to 30,000 at 50,000).
Ultimate discipline: Stop rolling positions when funds reach 800,000; take out 500,000 to store in stablecoins, and continue operations with the remaining 300,000— the endpoint of rolling positions is 'locking in wealth', not 'rolling forever'!
Four, the 'psychological moat' of rolling positions: Technique accounts for 30%, psychology accounts for 70%.
1. Don't be greedy for 'perfect position increases': missing out is better than making a wrong increase.
Some people always struggle with 'adding too early' or 'adding too little'; in fact, rolling positions do not require precision. As long as you increase the position within the 'profit interval', it is not wrong. It's like farming; as long as you sow in spring, it doesn't matter if it's a few days early or late; it's always better than missing the sowing period.
2. Accept 'imperfect stop losses': stop loss is a cost, not a failure.
In the process of rolling positions, having 3-4 stop losses out of 10 trades is normal. In 2023, when I was rolling positions with SOL, I had 2 stop losses out of 5 trades, but the remaining 3 profitable trades increased total funds by 80%. Treat stop losses as 'buying tickets'—if you want to enter the amusement park to play, you have to buy a ticket. Occasionally encountering a not-so-fun project doesn't allow you to refund the ticket, but it won't affect your enjoyment of other projects.
Five, 3 practical cases of rolling positions with 5000 yuan: Avoid the pitfalls others have stepped in.
Positive Case: 5000 yuan → 780,000, relying on a 'simple method'
From 2022 to 2024, someone started with 5000 yuan in cash, bought ETH during the bear market (at 880 dollars), sold at 1200 dollars, earning 40%; then used 1x leverage to roll positions, increasing the position by 10% every time they earned 10%, with a stop loss of 2%, and in two years rolled it to 780,000. The secret: only traded ETH, avoided altcoins, succeeding through 'focus + discipline'.
Negative Case: 100,000 → 500 yuan, died from 'leverage addiction'.
In 2023, a retail investor started with 100,000 yuan using 5x leverage for rolling positions, earning 50,000 in the first two trades, but then raised the leverage to 10x. When encountering a sharp drop in BTC, they liquidated, leaving only 30,000. Unwilling to accept this, they used 10x leverage to increase their position again, but a week later, completely lost everything. They violated the major taboo of rolling positions: using principal to increase positions and raising leverage excessively.
Key Conclusion: The essence of rolling positions is 'exchanging time for space'; turning 5000 yuan into 1 million requires at least 2-3 cycles of bull and bear markets (3-5 years). Those who fantasize about achieving it in a year will ultimately be educated by the market. The wealth code in the cryptocurrency world has never been 'fast', but rather 'steady + long-term'.
Finally: Insights from rolling positions for ordinary people
Can 5000 yuan be rolled to 1 million? Yes, but it needs to meet 3 prerequisites:
Use spare money to operate; losing it all won't affect your life.
At least spend 6 months practicing techniques, completing 100 simulated trades.
Accept 'slow', do not pursue getting rich overnight.
Rolling positions is not a myth, but a tool for 'ordinary people to counterattack through discipline'. It's like climbing stairs; each step is ordinary, but by persisting for 1,000 steps, you can reach heights that others cannot.
If you currently only have 5,000 yuan, don't rush. Start rolling from your first profit of 100 yuan—the snowball of wealth must start from a small snowball.
Trading cryptocurrencies is about repeating simple tasks, persistently using one method until mastering it. Trading can be like any other industry; practice makes perfect, allowing for effortless decision-making.
This year marks my seventeenth year of trading cryptocurrencies. I entered the market with 10,000 yuan and now support my family through trading! I can say that I've used 80% of the market's methods and techniques. If you want to make trading cryptocurrencies your second career to support your family, sometimes listening and observing can reveal insights beyond your understanding, saving you at least 5 years of detours!
Follow me @加密大师兄888 to keep up with trends and get rich together! Through bull and bear markets.
