In the cryptocurrency space, if you want to turn small funds into large ones, the only method is to roll positions!
Today I share this method with those destined to find it. If you also want to share a piece of the profits in the cryptocurrency space, take a few minutes to read this carefully, then slowly absorb and practice to form your own stable profit system in the cryptocurrency world!
1. The Concept of Rolling Positions
Rolling positions, as the name suggests, involve continuously opening and closing positions in contract trading, aiming to profit step by step in a fluctuating market. It's like practicing Tai Chi, using force to leverage force, moving with the trend, and turning market fluctuations into a source of profit.
2. Rolling Position Strategy
Players adopting the rolling position strategy:
Typically, they possess a keen market sense and quick reaction ability. They closely watch the candlestick movements like cheetahs.
Once a favorable signal is captured, act decisively, enter and exit quickly, striving to "take advantage" in every wave of ups and downs.
3. Risks of Rolling Positions
However, rolling positions are not a guaranteed money-making remedy. High-frequency operations mean high transaction costs; with a slight misstep, you may find your efforts go to waste. Furthermore, the market changes rapidly, and a small misjudgment could lead to being caught in a reverse trend, falling into a vicious cycle of increasing losses.
The Trilogy of Rolling Positions
1. Find the Right Rhythm
The first step in rolling positions is to find the market rhythm. Just like a dancer needs to keep up with the music, investors need to deeply study market trends, gain insights into price fluctuations, and find the most suitable oscillation range or trending market for rolling positions.
2. Setting Stop Loss and Take Profit
Rolling positions are like walking on a tightrope; risk control is crucial. Setting reasonable stop-loss points can prevent significant losses due to sudden market changes; setting target take-profit points ensures timely cashing in, avoiding greed that leads to profit erosion.
3. Adjusting Mindset
In the face of fluctuations in profits and losses, remain calm and do not let temporary gains or losses disrupt your strategy. Remember, roll over the position.
In rolling position operations, mindset determines success or failure. It is a long battle, not a one-time deal. Only by having a broader perspective can one smile in the ups and downs of the market. The advantages of rolling positions, for experienced old hands, are like icing on the cake, effectively improving capital utilization and magnifying profits. Especially in a highly volatile market environment, the rolling position strategy can showcase its unique charm, helping players navigate through the "blood and chaos".
The Challenge of Rolling Positions
However, rolling positions are not suitable for everyone. New players who blindly follow others may be overwhelmed by the high-intensity operations and high-risk characteristics of rolling positions, becoming part of the "herd of retail investors". Additionally, over-reliance on rolling positions may lead to excessively frequent trading, falling into the quagmire of "trading addiction".
The Choice of Rolling Positions
Therefore, for investors, whether to choose rolling positions depends on the alignment between self-awareness and risk tolerance. If you have solid fundamental skills, a good mindset, and a deep understanding of the market, rolling positions may become your weapon in the cryptocurrency space; conversely, if you only have a "let's gamble" mentality, rolling positions may only accelerate the evaporation of your wealth.
The art of rolling positions cannot be mastered on a whim. It requires the right timing, location, and human factors to increase the odds of success. Here are four types of rolling positions.
The golden moment for rolling positions:
(1) Breakthrough after a long period of sideways movement: When the market has been in a sideways state for a long time, with volatility dropping to a new low, once the market chooses a breakout direction, rolling positions can be considered.
(2) Buying the dip in a bull market: During the waves of a bull market, the market experiences a strong rally, followed by a sudden drop. At this point,
Consider using the rolling position strategy to capture buying opportunities.
(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 solid defense line. At this point, 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 can the chances of success in rolling positions be significantly increased. At other times, it is best to remain cautious or simply abandon those unclear opportunities. But 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 know how to find a balance between risk and opportunity.
Technical Analysis
After confirming that the market is suitable for rolling positions, the next step is technical analysis. First, look at the trend using indicators such as moving averages, MACD, and FRSI to determine whether the market is moving up or down. If possible, it is best to use several indicators together for more reliability.
Identify the key support and resistance points in the market, assess whether the breakout is reliable, and use divergence signals to capture reversal opportunities. For example, if the price reaches a new high but MACD does not follow, this could be a top divergence, indicating the price may fall, at which point consider reducing positions or shorting. Conversely, if the price hits a new low but MACD does not, this could be a bottom divergence, suggesting the price may rise, so consider increasing positions or going long.
Position Management
Reasonable position management is key in three steps: determine the initial position, set additional investment rules, and formulate a reduction strategy. For example, this makes it easier to understand. Initial position: If you have 1 million, then the initial investment should not exceed 10%, which is 100,000.
Addition rules: When you decide to increase your investment,
You must wait until the price breaks through the key resistance level, and each additional investment should not exceed 50% of the original investment, meaning at most an additional 50,000.
Reduction strategy: Once the price reaches your expected profit target, you can start selling gradually. Remember, when it's time to let go, do not hesitate; each sale should ideally not exceed 30% of your current holding, allowing you to gradually lock in profits. In fact, as ordinary investors, we can be bolder when encountering good opportunities, and be more conservative when opportunities are scarce. With good luck, perhaps you can earn a few million; with bad luck, you can only accept reality. However, I must remind everyone that once you make money, you should first withdraw the invested principal, and then continue to invest with the profits. It’s okay not to make money, but it’s not acceptable to lose money.
