How to play with rolling positions?
Fan Xiao Wang came with 500U, saying he watches others multiply their money several times a day, getting itchy hands. As a result, he blindly followed others and blew his account in just a few days, finally crying and saying: “Bro, am I not suited for this line of work?”
I laughed: It’s not that you’re not suited; you just don’t understand what rolling positions is all about yet. If you really want to roll your 500U into 100K, it’s not about rushing in blindly but rather about grinding slowly like a farmer planting crops. Rolling positions cannot be rushed.
Start off cautiously; staying alive is more important than anything
For the first trade, don’t get carried away; use 200-300U to test the waters, with a maximum position of half of your account. If that’s all the money you have and you go all-in and lose it all, how will you roll? The bottom line is two words: Stay alive. Don’t blow your account, and keep drawdowns under 20%. Even if you earn slowly, as long as your account is alive, there’s a chance to turn it around.
Don't touch trades you don’t understand, no matter the amount
What does it mean to understand? There must be clear support and resistance, a clear trend, and a risk-reward ratio of at least 2:1. For example, if you’re willing to risk 100U, there should be a possibility to earn 200U for it to be worth taking the trade. Don’t fantasize about getting rich overnight; first, aim to “make one trade at a time,” and slowly accumulate profits.
Cut losses ruthlessly; being soft-hearted is equivalent to giving away money
The loss for a single trade cannot exceed 5%-7% of your account. If you have 1000U in your account, this trade can lose a maximum of 50-70U, not a penny more. The worst is when you hesitate at the last moment, thinking “just wait a bit longer,” dragging a 50U loss into a 500U loss, making all your hard work go to waste.
Don’t be greedy when taking profits; securing them is what truly belongs to you
If you can earn 30-50 points in a small swing, take it and run. In a big trend, earning around 80-150 points is enough. Don’t always think “just a little more,” as there’s no end to the money you can earn in the market, but you can lose it all. Take your profits when you have them, and don’t regret it.
When you roll to 3000U, switch to a more stable method
Once your account hits 3000U, you’ve passed the first hurdle and can add 800-1000U, but risks need to be lowered: limit single losses to 3%-5% and keep drawdowns under 15%. With more money, the fluctuations can be more terrifying; at this stage, the focus is on preservation, not aggressive charging.
Lock in profits with every doubling; having cash on hand prevents panic
For example, if you grow 1000U to 3000U, withdraw 500U to keep in your pocket. Don’t dismiss it as small; this is your safety net. Many people end up losing everything because they didn’t lock in profits.
Ultimately, rolling positions has three stages: first, protect your life with small money; second, steadily accelerate with medium money; third, safeguard your profits with large money. If you follow this rhythm for 30 days, just look at the curve of your account; it will certainly be better than blindly rushing in.
Save this article well; next time, follow it step by step, and that’s the true essence of rolling positions.