How to perform rolling and compounding in the cryptocurrency world?

About how to roll over:

In the cryptocurrency world, if you want to get 1 million yuan in capital, there is only one way, that is rolling. When you have 1 million yuan in capital, you will find that life seems very different. Even if you don't use leverage, if the spot price rises by 20%, you can earn 200,000 yuan, and 200,000 yuan is already the upper limit of most people's annual income. Moreover, when you can make 1 million yuan from tens of thousands of yuan, you can also feel some ideas and logic of making big money. At this time, your mentality will be much calmer, and you only need to copy and paste in the future.

Don't always fantasize about tens of millions or even 100 million. You should start from your own actual situation. It is meaningless to brag all the time. Trading requires the ability to identify the size of opportunities. You can't always have a light position, nor can you always have a heavy position. Try a small position at ordinary times, and when a major opportunity comes, go all out.

For example, rolling positions can only be performed when a big opportunity comes. You cannot roll positions frequently. It doesn’t matter if you miss it, because you only need to successfully roll positions three or four times in your life, and it is possible to accumulate from 0 to tens of millions. Tens of millions are enough to make an ordinary person join the ranks of wealthy people.

A few points to note when rolling over:

1. Be patient. The profit of rolling positions is extremely lucrative. As long as you succeed a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you should not roll positions easily and look for opportunities with high certainty.

2. An opportunity with high certainty refers to sideways fluctuations after a sharp drop, and then an upward breakthrough. At this time, the probability of a trend is very high. You must find the point of trend reversal and intervene at the beginning.

3. Go long only.

Rolling Risk:

Talking about the rolling strategy, many people think that this strategy is risky. Let me tell you that the risk is actually very low, much lower than the logical risk of opening a futures order.

Suppose you only have 50,000 yuan, how do you start with 50,000 yuan? First of all, this 50,000 yuan must be your profit. If you are still in a loss, then don't read it.

If you open a position at 10,000 Bitcoin, set the leverage to 10x, and use the position-by-position mode, you only open 10% of the position, that is, only use 5,000 yuan as margin, which is actually equivalent to 1x leverage and set a 2-point stop loss. If you stop loss, you only lose 2%, which is 1,000 yuan. How did those people who got liquidated get liquidated? Even if your position was liquidated, wouldn't you only lose 5,000? How could you lose everything?

If your judgment is correct and Bitcoin rises to 11,000, you continue to open 10% of the total funds and set a 2% stop loss. If you stop loss, you can still make a profit of 8%. What is the risk? Isn't it said that the risk is very high? And so on...

If the price of Bitcoin rises to 15,000 and you increase your position smoothly, you can earn about 200,000 from this 50% market trend. If you catch two such market trends, you can earn about 1 million.

Compound interest does not exist at all. A 100-fold profit is earned by 10 times twice, 5 times three times, and 3 times four times. It is not achieved by accumulating 10% or 20% compound interest every day or every month. That is nonsense.

The above content is just an example. This is the general meaning. You need to figure out the specific details yourself.

The idea of ​​rolling positions is not risky in itself. Not only is it risk-free, but it is also one of the correct ways of thinking about futures trading. The risk is in leverage. You can roll positions with 10x leverage, and 1x is also OK. I usually use 2x or 3x. If I catch it twice, I can still get dozens of times of profit. At worst, you can use 0.1x leverage. What does this have to do with rolling positions? This is obviously a question of your own choice of leverage. I never told you to use high leverage.

And I have always emphasized that in the cryptocurrency circle, only one-fifth of your own funds should be invested, and only one-tenth of the spot funds should be used to play futures. At this time, the futures funds only account for 2% of your total funds, and the futures only use two or three times leverage, and only play Bitcoin, which can be said to reduce the risk to an extremely low level.

Would you feel sad if you lost 20,000 out of 1 million?

It's boring to keep arguing. Some people always say that rolling positions is risky and that making money is just luck. I'm not saying this to convince you. It's meaningless to convince others. I just hope that people with the same trading philosophy can communicate with each other. It's just that there is no screening mechanism at present, so there are always discordant voices, which interfere with the judgment of those who want to see.

Money Management:

Trading is not full of risks, and risks can be mitigated through fund management. For example, I have a futures account of 200,000 US dollars, and my spot account fluctuates randomly from 300,000 US dollars to more than 1 million US dollars. If there is a big opportunity, I will top up more, and if there is no opportunity, I will top up less.

If I'm lucky, I can make more than 10 million RMB a year, which is more than enough. If I'm unlucky, the worst case scenario is that my futures account will be liquidated, but it doesn't matter, the profit from spot trading can make up for the loss from the futures liquidation, and then I can rush in again. Can't I make a penny from spot trading in a year? I'm not that bad.

I can make no money, but I can’t lose money, so I haven’t had a margin call for a long time. Moreover, I often withdraw a quarter or a fifth of my futures profits and keep them separately. Even if I have a margin call, I will retain part of the profit.

As an ordinary person, my personal advice to you is to use one-tenth of the spot position to play futures. For example, if you have 300,000, use 30,000 to play. If your position is blown up, use the profit from spot to supplement it. After you have been blown up eight or ten times, you will always figure out some tricks. If you haven't figured it out yet, don't play it, you may not be suitable for this line of work.

How to make small funds big:

Many people have many misunderstandings about trading. For example, they think that small funds should be invested in short-term transactions to grow their funds. This is a complete misunderstanding. This kind of thinking is completely trying to use time to exchange space and get rich overnight. In fact, small funds should be invested in the medium and long term to grow.

Is a piece of paper thin enough? If you fold a piece of paper in half 27 times, its thickness will reach 13 kilometers. If you fold it in half 10 times and fold it 37 times, the earth will not be as thick as it. If you fold it 105 times, the entire universe will not be able to contain it.

If you have 30,000 yuan in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... In this way, you will have 400,000 or 500,000 yuan. Instead of thinking about making 10% today, 20% tomorrow... Sooner or later, you will ruin yourself.

Remember, the smaller the funds, the more you should invest in the long term, relying on the doubling of compound interest to grow, and don't make short-term profits. The current market has stabilized and it is a good time to invest. I will start investing in the targets I have studied for a long time, and I expect each of them to increase by more than 30%. If you like spot and have more than 1000u of funds to invest, please leave 66 comments in the comment area, and I will take you there for free.