I have been trading cryptocurrencies for over 10 years, and the strategy I have summarized (mindless rolling method): 300 times in 3 months, earning 30 million. If you also want to take a share of the cryptocurrency market, spend a few minutes and seriously read this article, you will benefit for a lifetime!
01 Rolling Warehouse 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 batch of new investors. They are eager for wealth and hope to find their place in this field. However, the cryptocurrency world is not a land of gold; it is more like a cruel natural selection, where only those who truly adapt to market rules can stand firm. Although the market is open to everyone, the number of investors who can actually achieve substantial returns in this field is very few.
For those preparing to enter the cryptocurrency market, it is essential to recognize that the crypto space is not a place where one can easily realize the dream of becoming rich overnight. On the contrary, it requires investors to conduct long-term market research, accumulate experience, and continue learning. Many enter the market with fantasies of quick wealth, hoping to achieve significant returns through small investments. Although such success cases do exist, they often require a carefully planned "rolling position" strategy to realize, and this strategy is not easily achieved through frequent operations.
The "rolling position" strategy is theoretically feasible, requiring investors to invest with appropriate positions when significant opportunities arise in the market, rather than frequently making small trades. The successful implementation of this strategy often relies on accurate judgments of market trends and timing. While it is possible to achieve wealth accumulation from zero to tens of millions by seizing a few such opportunities in a lifetime, it requires investors to possess high market insight and decision-making abilities.
In the pursuit of profit, investors should not only focus on the ultimate profit target but should pay more attention to how to achieve these goals. This means starting from one's own actual situation, investing time and effort into deeply understanding the market rather than blindly pursuing unrealistic huge profits. The essence of trading is to identify and seize opportunities, not to pursue light positions or heavy positions blindly.
In daily trading practice, investors can operate with small amounts of capital to accumulate experience and skills. When a real big opportunity arises, they can then invest fully to seize the chance. As investors gradually grow their small capital to millions, they will unknowingly master the strategies and logic for making substantial profits. At this point, their mindset will become more mature and composed, and future operations will resemble the replication and optimization of past successful experiences.
For those who wish to learn the rolling position strategy or want to understand how to grow from small capital to becoming millionaires, the following content will provide valuable guidance and advice. This will be a journey filled with challenges and opportunities, requiring investors to invest considerable time and effort into in-depth research and practice.
Rolling Position Timing
The art of rolling positions cannot be mastered on a whim. It requires favorable timing, location, and people to increase the odds of success. Here are four golden timings for rolling positions:
1. Breakthrough after a long-term sideways trend: When the market has been in a sideways state for a long time and volatility drops to a new low, once the market chooses a breakthrough direction, it may be worth considering using rolling positions.
2. Bottom-fishing during a significant drop in a bull market: After a strong rally in a bull market, if the market suddenly drops, it may be a good time to consider using a rolling position strategy to seize the bottom-fishing opportunity.
3. Breakthrough at the weekly level: When the market breaks through key resistance or support on the weekly chart, it is akin to breaking through a solid 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 there are significant news events and policy changes that may shake the market, rolling positions can become a powerful tool in your hands.
Only under these specific circumstances will the odds of successful rolling positions significantly increase. At other times, it is best to remain cautious or simply abandon unclear opportunities. However, if market conditions seem suitable for rolling positions, do not forget to strictly control risks and set stop-loss points to guard against unforeseen events. After all, wise investors are always those who understand how to find a balance between risk and opportunity.
Technical Analysis
Once the market is confirmed 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 is best to use several indicators together for greater reliability.
Identify the key support and resistance points in the market to determine whether a breakout is reliable, using divergence signals to seize reversal opportunities. For instance, if the price hits a new high but MACD does not follow, it may indicate a top divergence, suggesting the price may drop, and at this time you might consider reducing your position or shorting. Conversely, if the price hits a new low but MACD does not, it may indicate a bottom divergence, suggesting the price may rise, and at this time you might consider adding to your position or going long.
Position Management
Reasonable position management hinges on three steps: determining the initial position, setting up additional investment rules, and formulating a reduction strategy. For example, this makes it easier to understand.
Initial Position: If you have 1 million yuan, it is best that the initial investment does not exceed 10%, which is 100,000 yuan.
Additional Investment Rules: When you decide to increase your investment, wait until the price breaks through key resistance levels. The amount of additional investment should not exceed 50% of your original investment, meaning you can add a maximum of 50,000.
Reduction strategy: Once the price reaches your expected profit target, you can begin to gradually sell off your positions. Remember, when it's time to let go, do so without hesitation. Each sale should ideally not exceed 30% of your current holdings, allowing you to gradually lock in your profits.
In fact, as ordinary investors, we can be bold when we encounter great opportunities, and conservative when opportunities are scarce. With good luck, you might earn a few million; with bad luck, you can only accept reality. However, I still want to remind everyone that once you make a profit, you should first withdraw the principal invested, and then continue to invest with the earnings. You can afford not to make money, but you cannot afford to lose money.
Adjusting Holdings
Once position management is sorted out, we come to the most critical step—how to achieve rolling positions through adjustments to holdings.
1. Timing: Enter the market when the conditions for rolling positions are met.
2. Opening positions: Follow the signals from technical analysis to find the right timing to enter the market.
3. Adding positions: If the market moves in your direction, gradually increase your position.
4. Reducing positions: When you’ve achieved your predetermined profit or the market seems off, gradually sell off your positions.
5. Closing positions: When you reach your target price or the market clearly shows signs of reversal, sell everything.
Here’s how to operate; I will share my insights on rolling positions:
1. Add to your position after making a profit: If your investment rises, you may consider adding more, but only if the cost has decreased, and the risk is lower. It is not about adding every time you make a profit, but rather at the right time, such as at breakthrough points in a trend, and quickly reducing once a breakout occurs, or adding during pullbacks.
2. Bottom position + trading: Divide your assets into two parts, with one part remaining static as the bottom position and the other part used for buying and selling during market price fluctuations to lower costs and increase returns. Here are a few ways to divide:
1. Half-position rolling: Hold half of the funds long-term, while the other half is used for buying and selling during price fluctuations.
2. 30% bottom position: Hold 30% of the funds long-term, while the remaining 70% is used for buying and selling during price fluctuations.
3. 70% bottom position: Hold 70% of your funds long-term, using the remaining 30% for buying and selling during price fluctuations.
The purpose of doing this is to maintain a certain level of holdings while utilizing short-term market fluctuations to adjust costs, optimizing the holdings.
Risk Management
Risk management, simply put, involves two things: controlling total positions and allocating funds. Ensure that your total investment does not exceed the risk you can bear, and allocate your funds wisely, avoiding putting all your eggs in one basket. At the same time, always pay attention to market dynamics and changes in technical indicators, flexibly adjusting strategies based on market conditions, and timely setting stop-loss points or adjusting investment amounts when necessary.
Many people may feel both excited and fearful upon hearing about rolling positions, eager to try but worried about the risks. In fact, the rolling position strategy itself is not very risky; the key lies in the use of leverage. If used properly, risks can be fully controlled.
For example, if I have 10,000 yuan in capital and open a position when a certain coin is priced at 1,000 yuan, I use 10x leverage but only use 10% of the total funds (i.e., 1,000 yuan) as margin. This means I am only using 1x leverage. If I set a 2% stop-loss line, if the market turns unfavorable, my loss will only be 2% of this 1,000 yuan, which is 200 yuan. Even in the worst-case scenario where the liquidation condition is triggered, the loss will only be this 1,000 yuan, not all my funds. Those who get liquidated often do so because they used excessive leverage or had too heavy a position, which can trigger liquidation with slight market fluctuations. However, by following this method, your losses remain limited, regardless of whether you use 20x leverage, 30x, or even 3x or 0.5x. The key is whether you can use leverage and control positions reasonably.
This is the basic operational process for rolling positions. Interested friends can look into it more and study it carefully. Of course, everyone may have different opinions; I am just sharing my experience and not trying to persuade anyone.
How can small funds grow large? The compound interest effect.
If you have a coin that doubles in value every day, after a month, its value will be astronomical. The first day it doubles, the second day it doubles again, and so on, leading to an astonishing final number. This is the magic of compound interest. Even if your initial capital is small, as long as you keep doubling, you can eventually accumulate an impressive figure.
For those with limited funds who want to enter the market, aim for big targets. Many believe that with small funds, one should frequently engage in short-term trading for quick appreciation, but in reality, a medium to long-term approach might be more suitable. Instead of making small profits daily, it is better to focus on achieving multiples of growth in each trade; we seek exponential growth.
In position management, the first step is to diversify risks, avoiding putting all funds on a single trade. Funds can be divided into three to four portions, investing only one portion each time. For example, if you have forty thousand, divide it into four parts and use only ten thousand for each trade.
Use leverage moderately. The leverage for mainstream currencies should not exceed ten times, while for smaller currencies, it should not exceed four times.
Adjust dynamically. If you incur losses, supplement with an equal amount of external funds; if you make profits, extract some appropriately. Regardless, do not let yourself fall into losses.
When your funds grow to a certain level, you may consider gradually increasing the amount for each trade, but do not add too much at once; progress gradually.
Through reasonable position management and a robust trading strategy, small funds can gradually achieve substantial appreciation. The key is to patiently wait for the right moment and focus on the big targets in each trade, rather than daily small profits.
I also know that liquidation can happen to anyone. However, at that time, I still had returns from spot trading to cover losses, and I do not believe that you all have not made any profit from your spot holdings. My futures only accounted for 2% of total capital, so no matter how I lose, I will not lose everything; the loss amount is always within my control.
I hope we can all make our funds grow larger like a rolling snowball.
Giving someone roses leaves a lingering fragrance in your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
One tree cannot make a forest, and a lone sail cannot travel far! In the crypto space, if you do not have a good network and insider information, it is recommended to follow Old Wang, who can help you get to shore without cost, and you are welcome to join the team!!!
