Let me tell you a story. When I suffered the biggest loss, I had a contract explosion of 8 million in 3 days, was heavily in debt, nearly lost my family, and almost took my own life. However, the cryptocurrency world is truly magical. By chance, I received guidance from an expert. On a stormy night, I realized I had to start over and become a full-time trader, eventually becoming a professional cryptocurrency trader. I diligently researched technology, spending thousands of days and nights studying!

The journey in the cryptocurrency world is long, and I hope everyone can take fewer detours and experience fewer tragedies! Having achieved financial freedom, I have consistently created content on Zhihu. In fact, many people do not understand why, after achieving financial freedom and reaching a few small goals, I still want to do these things.

I have also asked myself the same question. In the process of finding back my original intention, one aspect is for my hero dream; I dedicate everything to trading, honing extraordinary skills yet wanting no one to know or witness!

On the other hand, I want to provide a path for those eager to learn. What I gain in the market is also a process of giving back to the market. As the saying goes, nature takes its course. I recall struggling for half a year due to issues with leverage.

Along the way, there has been no path to refer to for learning; I can only repeat the K-line over and over, day after day, through countless nights, knowing deeply the difficulties faced by retail investors in the cryptocurrency space, and empathizing more!

Since the Federal Reserve cut interest rates, many newcomers wishing to enter the cryptocurrency space have emerged. The cryptocurrency space is a place where survival of the fittest prevails. The threshold is low; everyone can enter the cryptocurrency space, but not everyone can make money in it.

If you plan to enter the cryptocurrency space, you must remember that it is not a place for overnight wealth but a field that requires long-term accumulation and continuous learning.

Many people come to the cryptocurrency space with dreams of becoming rich overnight, imagining they can grow a few thousand into a principal of 100,000. Of course, some have succeeded, but in most cases, it can only be achieved through the method of ‘rolling positions.’ Although rolling positions are theoretically feasible, it is by no means an easy path.

Rolling positions are a strategy that should only be used when significant opportunities arise; frequent operations are not necessary. As long as you seize a few such opportunities in your life, you can accumulate from zero to tens of millions. And having assets of tens of millions is enough for an ordinary person to join the ranks of the wealthy and achieve financial freedom.

When you truly want to make money, do not focus on how much you want to earn or how to earn that much. Do not think about those goals of tens of millions or even a billion; instead, start from your actual situation and invest more time to settle down. Just boasting cannot bring us substantial changes; the key in trading is to identify the size of opportunities; you cannot always have a light position or always a heavy position.

In daily practice, you can use small amounts of funds for practice, and when a real opportunity arises, go all out. When you really grow your capital from tens of thousands to one million, you will have unknowingly learned some strategies and logic for making big money. At this point, your mindset will become more stable, and future operations will resemble past successful repetitions.

If you want to learn about rolling positions, or if you want to learn how to grow from a few thousand to several million, then you need to pay close attention to the following content.

1. Judging the timing for rolling positions

Rolling positions are not something you can just do whenever you want; they require certain backgrounds and conditions to have a higher chance of success. The following four situations are most suitable for rolling positions:

1. Breakthrough after a long period of consolidation: When the market has been in a sideways state for a long time and volatility has dropped to a new low, once the market chooses a breakthrough direction, you can consider using rolling positions.

2. Buying the dip in a bull market: In a bull market, if the market experiences a significant drop after a round of sharp increase, you can consider using rolling positions to buy the dip.

3. Breakthrough at weekly levels: When the market breaks through significant resistance or support at the weekly level, consider using rolling positions to capture the breakout opportunity.

4. Market sentiment and news events: When market sentiment is generally optimistic or pessimistic, and there are recent significant news events or policy changes that may affect the market, consider using rolling positions.

Only under the above four circumstances does the rolling position operation have a higher chance of success; at other times, you should operate cautiously or forgo the opportunity. However, if the market appears suitable for rolling positions, strict risk control is still necessary, and stop loss points must be set to prevent potential losses.

2. Technical analysis

After confirming that the market meets the conditions for rolling positions, the next step is to conduct technical analysis. First, trend confirmation is needed, using technical indicators to determine direction, such as moving averages, MACD, RSI, etc. If possible, use multiple technical indicators together to confirm the trend direction, as it is always better to prepare more.

Secondly, identify key support and resistance levels to determine the effectiveness of the breakout. Finally, use divergence signals to capture reversal opportunities. (Divergence signal: When a cryptocurrency price hits a new high, and the MACD does not create a new high, forming a top divergence, it indicates that the price will rebound; you can reduce your position or short; similarly, when the price hits a new low and the MACD does not create a new low, forming a bottom divergence, it indicates that the price will rebound; you can increase your position or go long.)

3. Position management

After doing this step well, we move on to position management. Reasonable position management includes three key steps: determining the initial position, setting rules for increasing positions, and formulating strategies for reducing positions. I will give an example to facilitate understanding of these three steps:

Initial position: If my total capital is one million, then the initial position should not exceed 10%, i.e., 100,000.

Increase position rules: You must wait for the price to break through key resistance levels before increasing your position, with each increase not exceeding 50% of the original position, i.e., a maximum increase of 50,000.

Reducing position strategy: Gradually reduce positions when the price reaches the expected profit target; when it’s time to let go, don’t get entangled. Each time you reduce your position, do not exceed 30% of the current position, to gradually lock in profits.

In fact, as ordinary people, when opportunities are abundant, we should invest more, and when opportunities are scarce, we should invest less. If luck is on our side, we can earn millions; if not, we can only accept our fate. However, I still want to remind you that when you make money, you should extract the principal you invested and use the profits for trading. You may not make money, but you cannot lose money.

4. Adjusting positions

After completing position management, we reach the most critical step: how to achieve rolling positions through position adjustments.

The operational steps are undoubtedly those few steps:

1. Choosing the right time: Enter the market when conditions are suitable for rolling positions.

2. Opening positions: Open positions based on technical analysis signals and choose suitable entry points.

3. Increasing positions: Gradually increase positions when the market continues to move in a favorable direction.

4. Reducing positions: Gradually reduce positions when reaching the predetermined profit target or when the market shows a reversal signal.

5. Closing positions: Fully close positions when reaching profit targets or when the market shows obvious reversal signals.

Here, I will share my specific operation for rolling positions:

1. Floating profit to increase position: When the invested assets appreciate, you can consider increasing your position, but the premise is to ensure that the holding cost has decreased, thereby reducing the risk of loss. This does not mean that you should increase your position every time you make a profit, but rather do it at the right time, such as increasing positions during a converging breakout trend, quickly reducing after the breakout, or increasing during a trend retracement.

2. Bottom position + T trading: Divide the assets into two parts, one part remains unchanged as the bottom position, and the other part is used to trade during market price fluctuations to lower costs and increase returns. The ratio can refer to the following three types:

1. Half-position rolling: Half of the funds are used for long-term holding, while the other half is used for trading during price fluctuations.

2. Thirty percent bottom position: Thirty percent of the funds are held long-term, while the remaining seventy percent is used for trading during price fluctuations.

3. Seventy percent bottom position: Seventy percent of the funds are held long-term, while the remaining thirty percent is used for trading during price fluctuations.

The purpose of doing this is to maintain a certain holding position while using short-term market fluctuations to optimize holding costs.

5. Risk management

Risk management is primarily divided into two parts: overall position control and fund allocation.

You must ensure that the overall position does not exceed the acceptable risk range. When allocating funds, do so reasonably; do not put all funds into a single operation. Of course, you also need to monitor in real-time, closely watch market dynamics and changes in technical indicators, and flexibly adjust based on market changes, stopping losses or adjusting positions in a timely manner if necessary.

Many people feel both scared and eager when they hear about rolling positions; they want to try but are afraid of the risks. In fact, the risk of the rolling position strategy itself is not high; the risk lies in leverage, but if used reasonably, the risk will not be too great. The cryptocurrency space is not as difficult as imagined; if you are also a tech enthusiast and are deeply studying the technical operations in the cryptocurrency space, follow the public account [Crypto Circle Sunny Day] to keep secrets out of the cryptocurrency space.

For example, if I have a principal of 10,000 and open a position when a cryptocurrency is at 1,000, I use 10 times leverage and only use 10% of the total funds (i.e., 1,000) as margin, which is essentially equivalent to 1 times leverage.

Set a 2% stop loss; if triggered, I will only lose 2% of the 1,000, which is 200. Even if the liquidation condition is eventually triggered, you will only lose that 1,000, not all your funds. Those who face liquidation often do so because they used higher leverage or larger positions, causing a slight market fluctuation to trigger liquidation.

But using this method, even if the market is unfavorable, your loss is limited. Therefore, you can roll with 20 times leverage, 30 times, or even 3 times; using 0.5 times is also acceptable. You can use any multiple of leverage; the key is to use it reasonably and control the position appropriately.

The above is the basic process of using rolling positions. Friends who want to learn can watch it a few more times and ponder it thoroughly. Of course, there will be differing opinions, but I only share experiences and do not persuade others.

So how can small funds grow larger?

Here we must mention the effect of compound interest. Imagine, if you have a coin and its value doubles every day, after a month, its value will become astonishing. The first day it doubles, the second day it doubles again, and so on, leading to an astronomical figure. This is the power of compound interest. Even if you start with a small amount, after a long time of continuous doubling, it can grow to tens of millions.

For friends who want to enter the market with small funds, I recommend focusing on big goals. Many people think that small funds should frequently engage in short-term trading for quick appreciation, but it is actually more suitable for medium to long-term holding. Instead of earning small profits daily, it is better to focus on achieving several times the growth with each trade, aiming for exponential growth.

Regarding positions, you must first understand how to diversify risks; do not concentrate all funds on a single transaction. You can divide the funds into three to four parts, using only one part for each trade. If you have 40,000, divide it into four parts and use 10,000 for trading. Secondly, use leverage moderately; personally, I suggest not using more than 10 times leverage for Bitcoin and Ethereum, and not more than 4 times for altcoins.

Furthermore, you need to adjust dynamically; if you lose, supplement an equivalent amount of funds from outside, and if you earn, withdraw appropriately. No matter what, just don’t let yourself incur losses. Finally, you need to increase your position, but this is conditional on already being profitable. When your funds grow to a certain level, you can gradually increase the amount for each trade, but don’t increase too much at once; transition slowly.

I believe that through reasonable position management and sound trading strategies, small funds can gradually achieve significant appreciation. The key is to patiently wait for the right moment and focus on the big goals of each transaction, rather than small daily profits. Of course, I have also faced liquidation before, but at that time, my spot profits covered my losses. I also don't believe that you haven't made any money with your spot holdings. My futures only account for 2% of the total funds, so no matter how much I lose, I won't lose everything; the loss amount has always been within my controllable range. Finally, I hope that each of us can accumulate and explode, earning hundreds of thousands or even millions.

Alright, that's all for today. In future investments, if you wish to improve your learning efficiency in the cryptocurrency space and Web3, feel free to follow me and join an excellent investment team. Keep up with market trends and seize bull market opportunities. Success comes from wise choices and strategies, not chance.

Follow me, and you have already taken an important step on your path to success!

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