If you plan to invest in the crypto circle, please take a few minutes to read my answer word for word, as it may save you a life and a family.
Thousands of originally happy families ultimately fall apart, stemming from the pursuit of the unattainable dream of making a fortune in the crypto world.
I think if I really want to walk down the road of trading, I still need to study diligently. In addition to understanding the basics, I should also analyze news events and research technical indicators.
If you do not conduct in-depth research and reasonably plan your money bag, the funds will only be worn out. In the end, as a retail investor without any foundation, you will only joyfully enter and sadly exit.
Some famous technical indicators have been passed down for a reason. For example, the divergence signals of MACD, overbought and oversold signals of KDJ, support and resistance signals, etc. Although they cannot guarantee profits, they can allow you to analyze quantitatively based on a relatively mature model, thus giving investors a basic direction.
In the crypto world, making 1 million in capital from a few thousand only has one path, which is rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you do not use leverage, if the spot rises by 20%, you will have 200,000. 200,000 is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to 1 million, you will also grasp some thoughts and logic to make big money. At this time, your mindset will also calm down a lot, and afterwards, it will just be copying and pasting.
Don't just talk about millions or hundreds of millions; you need to start from your actual situation. Always boasting only makes you feel comfortable. Trading requires the ability to identify the size of opportunities; you can't always trade lightly or heavily. Normally, just play with small positions, and when a big opportunity arises, bring out the big guns.
For example, rolling positions can only be executed when big opportunities arise; you cannot roll all the time. Missing out is okay because you only need to succeed three or four times in your life to go from zero to tens of millions. Tens of millions is enough for an ordinary person to join the ranks of the wealthy.
First, we need to know under what circumstances rolling positions are suitable:
Currently, only the following three situations are suitable for rolling positions:
1► Choosing direction after long-term sideways volatility reaches a new low.
2► Bottom fishing after a large drop in a bullish market
3► Break through significant resistance/support levels on the weekly chart.
In summary, there are only three situations where the odds are relatively high; all other opportunities should be abandoned.
General Opinion:
Let’s define rolling positions: in a trending market, after significantly profiting with leverage, due to passive decline in overall leverage, to achieve the effect of compounding profits, increase trend positions at the right time. This process of increasing positions is called rolling positions.
The following are the methods for rolling positions:
● Floating profit added positions: After obtaining floating profits, consider adding positions to buy. However, before adding, ensure that the position cost has been lowered to reduce the risk of loss. This does not mean blindly adding positions after making profits, but should be done at the right time.
● Base positions + T-trading rolling positions: Divide funds into multiple parts, leaving part of the base position unchanged, while the other part conducts high-selling low-buying operations. Specific ratios can be chosen based on personal risk preferences and fund scales. For example, you can choose half positions for rolling T-trading, three-tenths base positions for rolling T-trading, or seven-tenths base positions for rolling T-trading.
In my opinion, there are mainly two types of 'the right time' defined:
1. Increase positions during converging breakout trends. After the breakout, take profits quickly from the main upward wave.
2. Increase trend positions during pullback trends, such as buying in batches during moving average pullbacks.
There are many specific ways to roll positions, the most common is to achieve it through position adjustment. Traders can gradually reduce or increase the number of positions based on market trends to achieve profit. Traders can also use trading tools like leverage to amplify returns, but this also increases risk.
Points to note when rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can successfully roll a few times, you can earn at least tens of millions to hundreds of millions, so you cannot roll lightly. You have to find high certainty and ten-out-of-nine opportunities.
2. What is a ten-out-of-nine opportunity? It is when the price plummets, then begins to consolidate, and suddenly surges upward. At this time, the trend is very likely to reverse, and you need to board quickly and not miss the good opportunity. 10%-100% version
1⃣ Only 10% of people in this market can make money because it is destined to be a zero-sum game;
2⃣ The money you can earn will only occur during 20% of the bull market time; the rest of the time will eliminate those without investment logic and patience;
3⃣ Always maintain the mindset of enduring a 30%-50% drawdown to laugh until the end; otherwise, the process will be a torment for you.
4⃣ 40% of retail investors may end up ending shortly after starting. The pitfalls in this circle are more than you can imagine;
5⃣ At least 50% of people in this market will choose to play contracts, and most will end up with nothing and lose everything. Remember, contracts are gambling.
6⃣ In a bull market trend, about 60% of people playing spot can earn, and the ones who can hold steady throughout the entire bull market cycle are the final winners.
7⃣ It is estimated that 70% of people are continuously recharging without ever withdrawing funds; the crypto world is far more brutal than you think;
8⃣ 80% of people cannot return to the past due to the wealth effect of this circle, and become addicted just like drug use.
9⃣ 90% of people ultimately are just passersby in this market, but everyone thinks they are the chosen one.
In the end, #BTC will definitely reach 1 million US dollars; always believe this.
3. Only roll long;
4. Setting appropriate stop loss and take profit points is very important.
Rolling positions to short is a high-risk strategy; market fluctuations can lead to significant losses. When entering a trade, we should set a reasonable stop loss point. Once the market trend goes against expectations, timely stop loss should be made to control losses. Equally important is to set appropriate take profit points to protect profits. This ensures we gain enough profit before the market reverses.
5. Reasonable capital management is also the key to stable profitability.
When conducting rolling short positions, we should allocate funds reasonably and not put all funds into one trade. Diversified investments can reduce risks and increase overall stability. We should also follow risk control principles and not misuse leverage to avoid greater losses.
6. Timely tracking of market dynamics is also key to profitability.
Market conditions are constantly changing, and we should maintain sensitivity to the market and adjust strategies in a timely manner. Keeping up with and learning relevant technical indicators and trading tools can help us better analyze market trends and improve prediction accuracy.
The cryptocurrency market rolling positions can be a strategy to earn profits, but it needs to be done cautiously. By accurately predicting market trends, setting appropriate stop loss and take profit points, managing capital reasonably, and timely tracking market dynamics, we can steadily obtain profits in the market.
Of course, if it is a cryptocurrency like Eth, you can also try a forced rolling position approach through staking, lending, or investing in liquidity pools to obtain safer returns, and specific cryptocurrencies should also be analyzed specifically to avoid liquidity problems.
▼ Rolling Position Risks
Let’s talk about rolling position strategies. Many people think this is risky. I can tell you that the risk is very low, far lower than the logic of opening a position in futures.
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, don’t look anymore.
If you open a position at 10,000 for Bitcoin with 10x leverage, using a cross margin mode and only opening 10% of the position, that is only opening 5,000 as margin, which is equivalent to 1x leverage. With a stop loss of 2%, if you hit the stop loss, you only lose 2%, only 2%? 1,000 RMB. How did those who got liquidated end up getting liquidated? Even if you got liquidated, okay, didn’t you just lose 5,000? How could you lose it all?
If you are right, Bitcoin rises to 11,000, you continue to open 10% of the total funds, and set a stop loss of 2%. If it hits the stop loss, you still earn 8%. What about the risk? Isn't it said that the risk is huge? And so on...
If Bitcoin rises to 15,000 and you add positions smoothly, in this 50% market, you should be able to earn around 200,000. Grabbing two such markets is about 1,000,000.
Compound interest does not exist; 100 times is achieved by 2 times 10 times, 3 times 5 times, 4 times 3 times, not by compounding 10% or 20% every day or every month. That's nonsense.
This content not only has operational logic but also contains the core internal skills of trading, 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 positions itself does not carry risk; it is not only risk-free but also one of the correct ideas for doing futures. The risk lies in leverage. 10x leverage can roll, and 1x can too; generally, I use two to three times leverage. Grabbing two times is the same as dozens of times in profit, right? At worst, you can use 0.x leverage. What does this have to do with rolling positions? This is clearly your own choice of leverage. I have never said to let you operate with high leverage.
Moreover, I have always emphasized that in the crypto world, only invest one-fifth of your money, and at the same time, only invest one-tenth of your spot funds into futures. At this time, futures funds only account for 2% of your total funds, and futures should only use two to three times leverage. Moreover, only play Bitcoin, which can be said to reduce risk to an extremely low level.
If 1 million is gone, would you feel distressed if 20,000 is lost?
Always leveraging is meaningless. There are always people saying rolling positions are risky, that making money is just luck. I’m not saying this to persuade you; persuading others has no meaning. I just hope to find people with the same trading philosophy to play together.
Currently, there is no filtering mechanism. There are always harsh voices that interfere with the recognition of those who want to watch.
▼ Capital Management
Trading is not necessarily full of risks; risks can be mitigated through capital management. For example, I have a futures account of 200,000, and the spot account ranges from 300,000 to over 1 million at random. When the opportunity is big, I put in more; when there is no opportunity, I put in less.
With good luck, you can earn over 10 million RMB in a year, which is more than enough. In the worst-case scenario, your futures account gets liquidated; it doesn't matter. The gains from spot trading can offset the losses from futures liquidation. After offsetting, you can re-enter. Can spot trading earn nothing in a year? I haven't reached that level of incompetence.
You can not make money but cannot lose money. So I have been liquidated for a long time, and in futures, I often save a quarter or a fifth of the profits separately. If the profits are exposed, I will also retain part.
As an ordinary person, my personal advice is to use one-tenth of your spot position to play futures. For example, if you have 300,000, take 30,000 to play. If exposed, re-enter the profits from the spot market. After you have been liquidated eight or ten times, you will grasp some insights. If you still haven't figured it out, don't play; it's not suitable for you.
▼ How small funds can grow larger
Many people have many misconceptions about trading, such as small funds should do short-term trading to expand their funds. This is a completely wrong idea. This way of thinking is just trying to exchange time for space, attempting to get rich overnight. Small funds should do medium-to-long-term trading to grow larger.
Is a piece of paper thin enough? A piece of paper folded 27 times is 13 kilometers thick. If folded 10 more times to 37 times, it is thicker than the Earth. If folded 105 times, the entire universe cannot contain it.
If you have 30,000 in capital, you should think about how to triple it in one wave and then triple it again in the next wave... then you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this will kill you sooner or later.
I believe many friends have experienced the helpless feeling of full positions being trapped, with market surges having nothing to do with them, being unable to cut losses. These can be avoided through position management.
No more nonsense, let's get straight to the point:
Position management gives everyone the current advice:
For example, you take out 30,000 USDT to do contracts.
My suggestion is to divide it into three parts, each with 10,000 USDT.
Each time you open a position, use one of the shares to open a position, a fixed 10,000 USDT.
Bitcoin does not exceed 10 times; altcoins should not exceed 5 times.
If you lose money
For example, if you lose 1,000 USDT, you can make up 1,000 USDT from outside.
If you earn 1,000 USDT, you withdraw 1,000 USDT.
Make sure to say in the recent period
You can ensure that each time you open a position, it is at a fixed position of 10,000 USDT.
Until you earn 60,000 USDT with this method from 30,000 USDT.
Raise each of your positions to 20,000 USDT.
This is how to do it. The benefits are:
Point 1: Split positions + low leverage to avoid being cut off by exchange spikes, which could lead to losing all your funds.
Point 2: Avoiding such problems when you are on top. If one day you are on top and lose everything, at most you will lose 1/3; the rest will still give you a buffer opportunity.
Point 3: Maintain a fixed position; whether you are losing or making profits, you can maintain a relatively calm mindset, which can help stabilize your mentality.
My habit of opening positions is to go all in at once.
For example, one share of 10,000 USDT, one market movement for one coin, is an all-in trade.
Full loading is 1/3 of the funds in the sub-warehouse, with a 5x increase in altcoins and 10x in Bitcoin, so you can enter and exit fully loaded.
The way I enter is that I have a relatively precise grasp of the opening point.
If you always have stop losses, then with low leverage, it is impossible to get liquidated.
My logic is to not look at any indicators, only focus on position profit and loss.
For example, if I made X% on my total scale, I would add a position; if my total scale lost Y%, I would stop loss or exit entirely.
All operations are related only to my position's profit and loss; K-line only serves as the direction for my initial position opening.
As for those indicators, their original function is to feedback the profit and loss situation of the positions of these indicators.
Actually, my operation is essentially a non-physical indicator, exclusively for the master, Li Bo Moore. I generally do not tell ordinary people.
The secret technique has already been given to you all; whether you can become famous in the martial arts world depends on yourself.
Everyone must collect these methods and watch a few more times. Friends who find it useful can forward it to more people involved in crypto trading around them. Follow me to learn more crypto tips. Having been through the rain, I am willing to hold an umbrella for the chives! Follow me, and we will walk hand in hand on the path of crypto!
