Define the rolling warehouse: in a trending market, use leverage significantly
After making a profit, the overall leverage passively decreases, in order to realize compounded profits.
Effectively increase trend positions at the appropriate time.
The process is called rolling the warehouse.
The ‘appropriate time’ defined mainly has two types:
1. Increase positions during converging breakout trends, and eat after the breakout.
Quickly reduce the added position during the main upward trend
2. Increase trend positions in pullback markets during trends, such as buying the dip at moving averages #trading#
Trading can be summarized in sixteen characters.
The ways to simplicity are to go with the trend, stop-loss in time, and let profits fly.
The way to simplicity is that rising is rising, and falling is falling; judging rising and falling is easy. If multiple moving averages are up, it is rising, and if down, it is falling.
It's that simple, don't think too much.
Going with the trend means going long when it rises and short when it falls.
It’s not that going long when it rises is necessarily right; it’s not about right or wrong, but about the amplitude. When it rises, the probability is higher that it will rise more than fall, and large amplitudes lead to large profits.
Stop-loss in time means cutting losses when you're wrong
Letting profits fly means holding onto what you've earned.
In reality, most people lose money because they go against the trend, analyzing this and that, going against the trend, running quickly when they make a profit, and resisting fiercely when they lose.
Examples of everyone making big money are basically earned through these sixteen characters.
This model is mostly unprofitable because large markets are not common, going against human nature.
Once you can eat from start to finish, you can become wealthy twice in life. Trading is very simple but hard to achieve. I often watch and think about it myself. #MageTonyQuote#Bitcoin
What is the difference between trading B and gambling?
(All or nothing) in the role of Wang Dalu
(The Disappearing Her) starring Zhu Yilong
All gamblers, families destroyed
Heavy positions, high leverage, all-in, borrowing high-interest loans
Pursuing overnight wealth or falling into a bottomless abyss overnight
Entrusted my life to the luck of this night
This is gambling
Of course, some also have good luck
Gambling and winning
But behind it lies countless bones
Risk is controllable, and mindset is calm
Pursue crossing bull and bear markets
Rely on the power of cycles
Earn the development dividends of the industry
Continuously improve cognition and trading skills
Rely on sedimentation and accumulation to gradually become rich
This is trading B
Being able to control emotions and desires often means mastering the initiative for success.
Many people privately message me asking how much leverage to generally open, so let me explain.
How much leverage to open depends on the following conditions:
1. Your risk preference
2. The currency type of the opened contract
3. The size of the contract funds
4. Are you making simple interest or compound interest?
5. Judging the size of the market.
So when you directly ask me how much leverage to use, it makes no sense. If you have a high risk preference, small funds seek high returns, wait for a relatively certain opportunity to leverage as high as possible based on the stop-loss level. If you don't do this, how can you earn your first bucket of gold?
The difference between simple and compound interest; if you are doing simple interest, leverage can be maintained at a certain multiple. But if it’s compound interest, as your capital size increases, leverage must definitely be reduced to increase the margin for error, otherwise, a major mistake will require starting over.
Another important point I think is that when encountering a large market, one must dare to operate with heavy positions because large markets are rare. As long as you seize a wave, your capital size may increase by one level.
Some of my old followers should know that my real trading profits started from compounding 10,000. The first trade was to go long BTC with 20x leverage for half a month, rolling it to over a hundred thousand, and then gradually reducing leverage. When the funds reached hundreds of thousands, it generally did not exceed 10 times. When reaching two or three million, leverage generally does not exceed five times. With the current amount of funds, I might only open about three times in general market conditions. (Mainly referring to BTC)
Someone asked me why society is getting more and more perfect, and ordinary people are not living better. Why has class mobility stopped?
Take Bitcoin as an example
If Bitcoin were legal in China, what would happen? The exchanges would definitely be giants like BAT, more likely the Shanghai Stock Exchange, and various financial institutions would participate. Do you think retail investors are strong or weak compared to institutions? Are institutions here to give money to retail investors or to cut them off?
The answer is clear. Institutions far exceed retail investors in information acquisition, professionalism, and capital capacity. Retail investors only face slaughter by institutions.
In other words, once Bitcoin is legal, retail investors will be slaughtered by institutions, and retail opportunities will disappear. So I really don't understand why so many people look forward to Bitcoin being legal and expect ETF approval, when obviously the legality of Bitcoin is the biggest nightmare for retail investors.
Only if Bitcoin is never legal can institutions not enter; thus, Bitcoin will always be a market where retail investors game against each other. You just need to have stronger cognition than most people.
BTH BEH BTC
