Do you know why some people can earn dozens of times their investment by rolling over their positions in a year, while you always face liquidation?
The key is that they understand how to follow the trend.
Rolling over positions is the most direct way to amplify profits in the cryptocurrency world, but it is also the easiest operation to fail. Those who truly make big money are never the ones who frantically open positions, but rather those who seize the trend and allow their profits to snowball through compound interest.
First, let's clarify one point: rolling over is not about randomly increasing your position, nor is it about averaging down on losing trades.
The core logic is very simple: only use profits to increase your position, and never touch the principal.
For example, if you have 100,000 in funds, start by using 20,000 to open a position. If it rises by 20%, you earn 4,000, which you can then use to continue trading. If the market continues to rise? The profits continue to roll, and the principal remains secure behind. Even if the trend reverses, you'll only lose the profits, and your account won't be liquidated.
Why do most people end up liquidated when rolling over their positions?
Because they average down on losses, then incur more losses, ultimately depleting their principal.
The market conditions truly suitable for rolling over positions must meet three criteria:
A clear upward trend, without blindly entering the market;
A strong market sentiment, preferably with a FOMO effect;
Good liquidity of the cryptocurrency, controlled by market makers, not random pump-and-dump coins.
How to operate in practice?
Step 1: Break through the previous high, enter with 20% of your position;
Step 2: When the price rises by 20%, use profits to add another 10%;
Step 3: When the price rises by 30%, continue to use profits to increase your position;
Finally: If the market shows signs of slowing down or dips below short-term support, take profits and withdraw.
Profit-taking techniques:
Trailing stop-loss: For every 10% increase, move the stop-loss point up by 5% to lock in profits;
Partial profit-taking: Sell part of your position at key resistance levels, and let the remaining profits continue to roll.
Remember, the principal is the root, and profits are the cannon. Following the trend and rolling over positions will lead to explosive compound returns. Master this method, and in the next bull market, you will be among the few who can truly double their money.
What you lack is not effort, and this market is not short of opportunities; what you truly lack is someone who can help you achieve stable profits in this market!
