I have been trading cryptocurrencies for over 10 years, and the method I've summarized through trial and error (the mindless rolling method): 300 times in 3 months, earning 30 million. If you also want to share a piece of the pie in the cryptocurrency market, take a few minutes to read this article carefully, and you will benefit for a lifetime!
01 Rolling Position Timing
02 Technical Analysis
03 Position Management
04 Adjusting Positions
05 Risk Management
Since the Federal Reserve's interest rate cut policy has settled, the cryptocurrency market has welcomed a group of new investors who are eager to find their place in this field driven by a desire for wealth. However, the cryptocurrency market is not a goldmine; it is more like a brutal natural selection, where only those who truly adapt to market rules can stand firm. Although the market is open to everyone, only a few investors can achieve substantial returns in this field.
For those preparing to step into the cryptocurrency circle, it is crucial to realize that the cryptocurrency space is not a place where one can easily achieve overnight wealth. On the contrary, it requires investors to conduct long-term market research, accumulate experience, and engage in continuous learning. Many people enter the market with fantasies of quick wealth, hoping to achieve massive returns through small investments. Although such success stories do exist, they often require carefully planned "rolling position" strategies to achieve, and this strategy is not easily accomplished through frequent operations.
"Rolling position" strategy is theoretically feasible; it requires investors to invest with appropriate positions when there are significant opportunities in the market, rather than frequently engaging in small trades. The successful implementation of this strategy often relies on accurate judgment of market trends and timing. Although capturing a few such opportunities in a lifetime could potentially lead to wealth accumulation from zero to millions, it requires investors to possess extremely high market insight and decision-making abilities.
In the pursuit of profit, investors should not only focus on the ultimate profit goal, but should pay more attention to how to achieve these goals. This means starting from their own actual situation, investing time and energy to deeply understand the market, rather than blindly pursuing unrealistic huge profits. The essence of trading lies in identifying and seizing opportunities, not in blindly pursuing light or heavy positions.
In daily trading practice, investors can use small amounts of capital to operate, thereby accumulating experience and skills. When a real big opportunity arises, they can then go all out to seize it. When investors gradually increase their small capital to one million yuan, they will unknowingly grasp the strategies and logic for making big money. At this point, their mindset will become more mature and stable, and future operations will resemble the replication and optimization of past successful experiences.
For those hoping to learn rolling position strategies or wanting to know how to grow from small capital to millions, the following content will provide valuable guidance and advice. This will be a journey filled with challenges and opportunities, requiring investors to invest a lot of time and effort into in-depth research and practice.
Rolling Position Timing
The art of rolling positions is not something that can be mastered on a whim. It requires the right timing, geographical advantages, and the right people to increase the odds. Here are four golden opportunities for rolling positions:
(1) Breakthrough after a long-term sideways market: 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 breakout direction, it can be considered to use rolling positions.
(2) Buying the dip in a bull market: In the wave of a bull market, the market experiences a strong rise, followed by a sudden drop. At this time, consider using the rolling position strategy to capture the buying opportunity.
(3) Breakthrough at the Weekly Level: When the market breaks through key resistance or support levels on the weekly chart, it is like breaking through a strong defense line. At this time, rolling positions can seize this breakthrough opportunity.
(4) Market Sentiment and News Events: When market sentiment is as changeable as the weather, or when significant news events or policy changes may shake the market, rolling positions can become your weapon.
Only in these specific situations will the odds of rolling positions significantly increase. At other times, it’s best to remain cautious or simply abandon those unclear opportunities. However, if the market conditions seem suitable for rolling positions, don’t forget to strictly control risks and set stop-loss points to guard against unforeseen events. After all, wise investors are always those who know how to find a balance between risks and opportunities.
Technical Analysis
After confirming that the market is suitable for rolling positions, the next step is technical analysis. First, observe the trend using tools like moving averages, MACD, and RSI to determine whether the market is going up or down. If possible, it's best to use several indicators together, as this is more reliable.
Identify the key support and resistance points in the market and determine whether the breakout is reliable, using divergence signals to capture reversal opportunities. For example, if the price hits a new high but MACD does not follow, this may be a top divergence, indicating that the price may drop; at this point, consider reducing positions or shorting. Conversely, if the price hits a new low but MACD does not also hit a new low, this may be a bottom divergence, indicating that the price may rise; at this point, consider adding positions or going long.
Position Management
Reasonable position management is key to three steps: determine the initial position, set up the addition rules, and develop a reduction strategy. For example, this makes it easier to understand.
Initial Position: If you have 1 million yuan, the initial investment amount should not exceed 10%, which is 100,000 yuan.
Adding Position Rules: When you decide to increase investment, make sure to wait until the price breaks through the key resistance level. Each time you increase your investment amount, it should not exceed 50% of the original investment amount, meaning you can add a maximum of 50,000 yuan.
Reduction Strategy: When the price reaches your expected profit target, you can start selling gradually. Remember, when it's time to let go, just let go; don’t hesitate. The amount sold each time should preferably not exceed 30% of your current holdings, allowing you to lock in your profits gradually.
In fact, as ordinary investors, we can be bolder when we encounter great opportunities, and be more conservative when opportunities are scarce. If luck is on your side, you might make a few million; if luck is not, you can only accept reality. However, I still want to remind everyone that once you make a profit, you should first withdraw the invested principal and then continue to invest with the profits. You can afford to not make money, but you cannot afford to lose money.
Adjusting Holdings
After handling position management, we arrive at the most critical step - how to achieve rolling positions by adjusting holdings.
1. Timing: Enter the market only when the market conditions are suitable for rolling positions.
2. Opening Positions: Follow the signals from technical analysis and find the right time to enter the market.
3. Adding Positions: If the market moves in your direction, then gradually increase your position.
4. Reducing Positions: When you have earned the expected profit or when the market seems a bit off, gradually sell.
5. Closing Positions: When you reach your target price or when the market clearly looks like it’s about to change, then sell everything.
Here’s how I operate; I will share my rolling position insights:
(1) Add more after making money: If your investment has risen, consider adding more, but the premise is that the cost has come down and the risk is smaller. It’s not that you add every time you make money, but rather at the right moment, such as at a breakout point in the trend; if it breaks out, quickly reduce positions, or add during a pullback.
(2) Base Position + Trading: Split your assets into two parts, one part remains unchanged as a base position, and the other part is traded during market price fluctuations, which can reduce costs and increase returns. Here are a few ways to split:
1. Half Position Rolling: Hold half of the funds long-term, and trade the other half during price fluctuations.
2. 30% Base Position: Hold 30% of funds long-term, and trade the remaining 70% during price fluctuations.
3. 70% Base Position: Hold 70% of funds long-term, and trade the remaining 30% during price fluctuations.
The purpose of doing this is to maintain a certain position while using the market's short-term fluctuations to adjust costs and optimize holdings.
Risk Management
Risk management, simply put, involves two things: total position control and fund allocation. Ensure that your total investment does not exceed the risk you can bear, and allocate funds wisely, never putting all your eggs in one basket. At the same time, keep an eye on market dynamics and the changes in technical indicators, flexibly adjusting strategies based on market conditions, and promptly stopping losses or adjusting investment amounts when necessary.
Many people may feel both excited and scared when they hear about rolling positions, eager to try but worried about the risks. In fact, the rolling position strategy itself does not carry much risk; the key lies in the use of leverage. If used reasonably, the risk can be completely controlled.
For example, if I have 10,000 yuan in principal and open a position when a certain coin's price is 1,000 yuan, I use 10 times leverage but only use 10% of the total funds (i.e., 1,000 yuan) as margin; thus, I am effectively using only 1 times leverage. If I set a 2% stop-loss line, once the market turns unfavorable, I would only lose 2% of this 1,000 yuan, which is 200 yuan. Even in the worst-case scenario, where liquidation conditions are triggered, you only lose this 1,000 yuan, not all your funds. Those who face liquidation often do so because they used excessively high leverage or had too heavy positions, where even slight market fluctuations can trigger liquidation. However, using this method, even in an unfavorable market, your losses will be limited. Therefore, whether you use 20 times leverage, 30 times, or even 3 times or 0.5 times, the key is to use leverage and control positions reasonably.
The above is the basic operational process of rolling positions. Interested friends can take a look and study it carefully. Of course, everyone’s perspective may differ; I am just sharing my experience without trying to persuade anyone.
How can small funds grow big? Compound interest effect.
If you have a coin, and its value doubles every day, after a month, its value will be astonishing. It doubles on the first day, doubles again on the second day, and continues this way; the final number will be remarkably large. This is the magic of compound interest. Even if you start with a small amount, as long as you keep doubling, you can eventually accumulate an astonishing number.
For those who have limited funds but want to enter the market, aim for big goals. Many people think that with small funds, they should trade frequently for quick returns, but in reality, medium to long-term investments might be more suitable. Instead of making a little money every day, it’s better to focus on achieving several times the growth with each trade; what we want is exponential growth.
In position management, the first step is to diversify risks; don’t put all your funds on a single trade. You can split your funds into three to four parts and only use one part for each trade. For example, if you have 40,000 yuan, split it into four parts, using 10,000 yuan for each trade.
Use leverage moderately. The leverage for mainstream currencies should not exceed ten times, and for small coins, it should not exceed four times.
Adjust dynamically. If you incur losses, supplement equal amounts of capital from outside; if you make a profit, withdraw some appropriately. Regardless, don’t let yourself fall into losses.
When your funds grow to a certain level, consider gradually increasing the amount for each trade, but don’t add too much at once; take it step by step.
Through reasonable position management and sound trading strategies, even small funds can gradually achieve significant appreciation. The key is to patiently wait for the right timing, focusing on the big goals of each trade, rather than daily small profits.
I also know that anyone can encounter a liquidation situation. But at that time, I still had spot gains to offset the losses, and I don't believe you have made no profit at all with the spot you hold. My futures only account for 2% of my total funds, and no matter how much I lose, I won't lose everything; the loss is always within my control.
I hope we can make our funds grow like a snowball, getting bigger and bigger.
Giving someone a rose, your hand has a lingering fragrance. Thank you for your likes and follows, wishing everyone wealth freedom by 2025!
The martial arts secret has been given to everyone; whether you can become famous in the world depends on yourself.
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