In a previous period of market crash, Liangxi made 10 million by shorting with 10000 yuan.
Everyone is short; why has only Liangxi made so much money? The answer is rolling positions.
When it comes to rolling positions, one person must be mentioned: Tony. Many people may not know him, but he made 20 million with a 50,000 capital five years ago.
Tony's rolling positions handbook is regarded by many as the trading bible.
Who is Tony?
Early internet celebrities in the cryptocurrency world, you may have heard of Liangxi and Hanbalong Wang. But in fact, they belong to the same period of super internet celebrities as Tony.
In 2021, Wizard Tony achieved 20 million in profit within a year with a capital of 50,000 yuan through high-leverage trading and rolling positions strategy.
On the internet, there are countless internet celebrities who have made tens of millions, but Tony is fundamentally different from these people. If I compare one person, I feel that the Wizard is very similar to Tony.
What is rolling positions?
Rolling positions, simply put, is to use small funds to try multiple times, achieving double profits through high leverage in a successful market wave. While the process sounds exciting, the core is actually about controlling risk, precise judgment, and strict execution.
Case sharing: Rolling from $300 to tens of thousands of dollars.
Assuming you have $300 (about 2000 RMB), use this money to roll positions. You only take out $10 to open a position each time, choosing 100 times leverage. That's right, 100 times leverage! This means that any 1% rise or fall will be magnified into a 100 times profit or loss.
First, the key is that you must firmly establish your direction—whether it is bullish or bearish. Before placing an order, you must make a judgment and have execution power; do not change direction arbitrarily. If you lose dozens of times in a row, it means your direction may be wrong. At this time, it is best to stop and reflect, and you may even need to temporarily exit the market and wait for a market reversal.
But suppose you reach the 20th operation, and the market finally behaves as you expected, starting to move in your anticipated direction. As long as the price rises or falls by 1%, you can earn $20 from $10. Next, you withdraw $10 as profit and continue to invest the remaining $20. This process is called 'rolling positions.'
If another 1% rise or fall occurs, $20 will become $40. At this stage, the price fluctuation has accumulated to about 2%, while your funds have quadrupled. Continuing this strategy, within the common 10% price fluctuations of Bitcoin in a month, you may soon be able to roll your principal into thousands or even tens of thousands of dollars.
Set clear goals.
An important principle of rolling positions is to set clear goals. For example, when you earn $5000 or $10000, stop rolling positions, withdraw profits, and reduce risks. This strategy helps you lock in earnings and avoid being too greedy in pursuit of a larger goal, leading to final liquidation.
The consequences of greed: If you do not take profits in time and continue rolling positions, it is very likely that due to one wrong judgment, you will face liquidation, and all your previous efforts will be in vain. Therefore, controlling desires and setting profit-taking points is always the key to safe trading.
When should you start rolling positions again?
When you have made tens of thousands of dollars by rolling positions, you can choose to stop and wait. Wait for a clearer market trend, such as a large-scale rise or fall cycle of a specific cryptocurrency. At this time, you can continue to use $500 as the principal, still taking $10 for each operation with 100 times leverage. By patiently waiting, once the market shows a one-sided trend, it may give you the opportunity to realize several times or even dozens of times profit within a few days.
However, it is important to note that such opportunities are not common. You may need several months or even a year or two to encounter a truly big market. Moreover, the ups and downs in the market and false breakouts can expose you to many unpredictable risks. Therefore, the success of rolling positions relies not only on precise judgment but also on a lot of patience and self-discipline.
Many people playing contracts always face liquidation.
In summary, the reasons are simply as follows:
Can't resist the urge: always wanting to open positions, frequently trading, ignoring the overall market trend.
Lack of patience: always thinking of making big money in a short time but unwilling to wait for a suitable opportunity.
Not following the plan: Although there is a trading plan, it is not strictly followed in actual operations, leading to emotional trading and ultimately liquidation.
When playing contracts, the most taboo are greed and impulsiveness. You need to strictly execute your trading plan, even if market fluctuations make you itch, you must resolutely control your hands. Otherwise, the final result will definitely be liquidation, even leading to bankruptcy.
Rolling positions, as a high-risk high-return strategy, is suitable for investors with strong self-discipline and patience. Through rolling positions, you can leverage small funds for larger returns, but the premise is that you must accurately judge the market and strictly execute the plan without being greedy. If you can control these principles well, rolling positions can indeed be a good way to quickly accumulate funds.
I only do real trading; the team still has positions available to enter.