Someone asked me:
With a small amount of capital doing spot trading, how can I grow it bigger? Is it just a matter of luck?
I told him directly: Luck may help you for a moment, but if you want to turn 10,000 into over 100,000, it relies on just two words—rolling the warehouse.
Don't overcomplicate rolling the warehouse; it’s not all-in, not just holding on, but a method of increasing profits incrementally.
First, establish a base position, and when you make your first profit, don’t be in a hurry to withdraw everything. Instead, reinvest the profit portion into the next opportunity. Just like a snowball, it grows bigger as it rolls.
To truly do well in spot trading and rolling the warehouse, there are three points that must be adhered to:
1️⃣ Only follow trends, don’t go against the trend.
When the market direction is right, there is a chance for profits to double. For short-term trading, look at the 3-day moving average; for medium-term, the 30-day moving average; for long-term, the 120-day moving average. If you don’t understand it, don’t act rashly.
2️⃣ Keep capital stable, let profits roll.
Capital is life; profits are bullets. The base position must be stable so that the profit portion can continue to roll. This way, even if the market reverses, the capital can remain in play and won’t be completely wiped out.
3️⃣ Lock in profits in segments, don’t hold on too tightly.
When profits come in, make sure to take them in batches, leaving some profits to continue rolling. This way, you can safeguard your gains and maintain the momentum of rolling. Holding on too tightly will only send back all the hard-earned money during a major pullback.
Many people hear about rolling the warehouse and think it means “frequent trading,” but as a result, their capital shrinks. In fact, the truth of rolling the warehouse is simple: profits generate profits, and capital must be safe.
I often say that rolling the warehouse in spot trading is like raising fish: first, release small fry, wait for them to grow, keep a portion for further raising, and sell the other portion for profit. Over time, the fish pond will naturally become fuller.
When you truly grasp this logic, scaling up your funds will become a natural outcome.
A correct method + stable execution is far better than you working hard alone! If you want to turn your situation around, you need to catch up quickly.
