How to roll over positions:
In the crypto world, you need to find a way to first earn 1,000,000 in capital. From several thousand to 1,000,000, there is only one path.
That is rolling over positions. But the risk is relatively greater! (Operate cautiously)
Once you have 1,000,000 in capital, you will find that your entire life seems different. Even if you don’t use leverage, just holding spot can increase in value.
If you have 20%, you will have 200,000, which is already the ceiling of annual income for most people.
And when you can grow from several thousand to 100,000, you will also grasp some ideas and logic for making big money. At this point, your mindset will also become much calmer; the future is just about copying and pasting.
Don’t always think about millions or billions; start from your actual situation. Bragging only makes you feel good. Trading requires the ability to identify the size of opportunities; you cannot always use small positions or always use large positions. Usually, play with small positions, and when a big opportunity comes, pull out the big guns.
For example, rolling over positions can only be operated when there is a major opportunity. You cannot keep rolling; it’s okay to miss out. Because you only need to successfully roll over three or four times in your lifetime to go from zero to tens of millions, which is enough for an ordinary person to upgrade.
The ranks of wealthy people.
Points to pay attention to when rolling over positions:
1. Enough patience; the profits from rolling over positions are huge. As long as you can successfully roll over a few times, you can earn at least tens of millions to billions.
So you cannot roll over easily; you need to find highly certain opportunities.
2. High certainty opportunities refer to those that experience a sharp decline followed by sideways consolidation, then break upwards. The probability of following the trend at this time is very high.
You must find the point of trend reversal and get on board from the start.
3. Only roll over long positions;
▼ Risks of Rolling Positions
Let’s talk about rolling over strategies. Many people think this is risky; I can tell you, the risk is very low, much lower than the logical risk of futures you play.
If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit. If you are still losing, then don't look.
If you open a position at 10,000 for Bitcoin, set the leverage to 10 times, and use the isolated margin mode, only opening 10% of the position, which is only 5,000 as margin, this actually equals 1x leverage with a 2% stop-loss. If you hit the stop-loss, you only lose 2%. Just lose 2%? 1,000 yuan. How do those who blow up their accounts blow up? Even if you blew up, isn’t it just a loss of 5,000? How can you lose everything?
If you're right 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 risk? Didn't they say the risk is huge? And so on...
If Bitcoin rises to 15,000, and you have successfully increased your position, in this wave of 50% market, you should be able to earn around 200,000. Grabbing two such market opportunities means around 1,000,000.
Compound interest does not exist at all. 100 times is earned through two rounds of 10 times, three rounds of 5 times, and four rounds of 3 times, not through daily or monthly 10% or 20% compounding. That is nonsense.
This content not only has operational logic but also contains the core internal skills of trading, which is position management. As long as you understand position management, you cannot lose everything.
This is just an example; the general idea is like this. The specific details still need to be pondered by yourself.
The concept of rolling over positions itself does not have risk; not only is there no risk, but it is also one of the most correct approaches to futures. The risk lies in leverage. You can roll with 10 times leverage, or with 1x, and I usually use two or three times. Grabbing two times is the same as earning dozens of times, right? Even if you use 0.3 times, what does that have to do with rolling over? This is clearly your own choice regarding leverage. I have never said to let you operate with high leverage.
And I always emphasize, in the crypto world, only invest one-fifth of your money, and simultaneously, only invest one-tenth of your spot money to play futures. At this time, the futures fund only accounts for 2% of your total funds, and futures only use two to three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level.
Would you be heartbroken if you lost 20,000 out of 1,000,000?
Always leveraging is meaningless. There are always people saying rolling over is risky, and that making money is just good luck. Saying these things is not to convince you; convincing others is pointless. I just hope to find people with similar trading philosophies to play together.
It's just that there is currently no filtering mechanism; there are always harsh voices that interfere with the recognition of those who want to see.
▼ Capital Management
Trading is not full of risks; risks can be mitigated through capital management. For example, I have a futures account with 200,000, and my spot account ranges from 300,000 to over 1,000,000 randomly. When there are good opportunities, I invest more; when there are no opportunities, I invest less.
With good luck, you can earn more than 10 million RMB in a year, which is quite enough. With bad luck, the worst-case scenario is that the futures account blows up, but it doesn’t matter; spot earnings can compensate for the losses from the futures blow-up. After compensating, you can reinvest. Can’t spot earnings earn a penny in a year? I’m not that bad.
You can not make money, but you cannot lose money. So I haven't blown up my account in a long time, and in futures, I often take out one-fourth or one-fifth to save separately. If I blow up, I will still retain some of the profits.
As an ordinary person, my personal advice is to use one-tenth of your spot position to play futures. For example, with 300,000, use 30,000 to play. Once exposed, invest the spot profits back in. After exploding ten or eight times, you will surely figure out some insights. If you haven’t figured it out yet, then don’t play; it’s not suitable for you.
▼ How small funds can grow
Many people have misconceptions about trading, for example, small funds should do short-term trading to increase capital. This is a complete misconception. This kind of thinking is simply trying to exchange time for space, attempting to get rich overnight. Small funds should do medium to long-term trading to grow.
Is one piece of paper thin enough? A piece of paper folded 27 times is 13 kilometers thick. If folded 10 more times, reaching 37 folds, it would be thicker than the Earth. If folded 105 times, the entire universe wouldn’t be able to hold 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... that way you will have four to five hundred thousand. Instead of thinking about earning 10% today and 20% tomorrow... this will eventually lead to your downfall.
Always remember, the smaller the capital, the more you should focus on long-term trading. Rely on compounding to grow, and do not do short-term trading for small profits.
