When you really have 1 million, you will find that life is completely different. Even if you don’t use leverage, just making a 20% gain on cash means 200,000, which an average person might not earn in a year.
Moreover, if you can grow from tens of thousands to 1 million, you have definitely grasped the ways to make big money, and your mindset will be much steadier. The next step is just a matter of copying and pasting. Don’t always think about tens of millions or hundreds of millions; start from reality, boasting is useless, it makes the cow feel good though. In trading, you need to learn to recognize the size of opportunities; you can’t always be lightly invested, nor can you always be heavily invested. Generally, trade small amounts, and when a big opportunity arises, go all in.
For example, with rolling positions, you can only use this strategy when a big opportunity arises; you can’t roll every day. Missing a couple of times is okay; as long as you successfully roll three or four times in your life, you can go from 0 to over ten million. Over ten million is enough to make an average person wealthy.
So when is it suitable to roll positions? There are three situations:
1. Long-term sideways movement, with volatility dropping to an extreme, and then suddenly choosing a direction;
2. After a big rise in a bull market, there will be a significant drop, time to buy at the bottom;
3. When breaking through significant resistance or support levels on a weekly chart.
Apart from these three situations, don't touch other opportunities; the odds are too low.
In simple terms, rolling positions means in a trending market, after making a lot of money with leverage, due to the overall leverage passively decreasing, to continue compounding, one adds to positions at the right time. This process of adding to positions is called rolling positions.
There are two specific strategies:
Adding to positions with floating profit: After making some money, it may be considered to add to positions, but ensure that the cost has come down and the risk of loss is small. Don’t just add blindly when there is profit; timing is crucial.
Base position + T trading rolling: Divide the money into several parts, keep a portion of the base position unchanged, and use another portion for high selling and low buying. The specific ratio depends on your risk tolerance and capital amount, such as rolling half the position, rolling 30% of the base position, or rolling 70% of the base position.