1. Rolling Position Concept Rolling positions, as the name implies, involve continuously opening and closing positions in contract trading to gradually profit from fluctuating markets. It is like practicing Tai Chi, using force to counterforce, moving with the market, and transforming market fluctuations into a source of profit.
2. Rolling Position Strategy Players who adopt a rolling position strategy usually possess keen market instincts and quick reaction abilities. They keep a close eye on the K-line movements like a cheetah, and once they capture a favorable signal,
4. Decisively strike, enter and exit quickly, striving to 'harvest' in each wave of decline in rolling position risks.
3. However, rolling positions are not a guaranteed way to make money. High-frequency operations mean high transaction costs. A slight mistake could result in a 'wasted effort.' Additionally, the market changes rapidly; a small misjudgment could lead to being 'washed up' by the reverse trend, falling into a vicious cycle of increasing losses.
1. Find the right rhythm
The first step of rolling positions is to find the right market rhythm. It is like a dancer needing to keep up with the musical beat; investors must deeply study market trends, understand price fluctuation patterns, 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 caused by sudden market changes; setting target take-profit points ensures timely cashing out and avoids greed causing profits to evaporate.
In rolling position operations, mindset determines success or failure.
In the face of profit and loss fluctuations, one must remain calm and not lose composure due to temporary gains or losses. Remember, rolling positions is a long-term battle, not a one-off deal. Only by having a broad outlook can one laugh last in the volatility of the market.
The Advantages of Rolling Positions For experienced veterans, rolling positions are like icing on the cake, effectively improving fund utilization and amplifying returns. Especially in a highly volatile market environment, the rolling position strategy showcases its unique charm, helping players navigate through the 'blood and thunder' with ease.
The Challenge of Rolling Positions However, rolling positions are not suitable for everyone. New players who blindly follow trends may fall victim to the high-intensity operations and high-risk characteristics of rolling positions, becoming part of the 'retail investor army'. Moreover, over-reliance on rolling positions may lead to excessively frequent trading, falling into the quagmire of 'trading addiction'. Therefore, for investors, whether to choose rolling positions depends on self-awareness and risk tolerance. If you have solid fundamentals, a good mindset, and a deep understanding of the market, rolling positions may become your tool for navigating the crypto world; conversely, if you only have a 'gamble' mentality, rolling positions may only accelerate your wealth evaporation.
One, Preparation
Before the dealer begins to intervene in the target, they will gather various information about the project, such as the total amount of chips, the cost for investors at various levels, chip distribution, community enthusiasm assessments, etc. After collecting the information, they will set the rally target based on the funds they can mobilize. The specific preparation content may vary among different dealers and main forces.
Two, Building Positions
Before building positions, the dealer conducts various surveys and studies, including market sentiment, economic trends, policy risks, etc. The dealer builds positions when the market is generally pessimistic, simply put, when retail investors are fearful, the dealer is greedy. Depending on the dealer's strength, a short-term dealer can control 10%-30% of the chip quantity for manipulation, while a long-term dealer requires over 50%. The key is still the dealer's strength. Under certain conditions, a dealer cannot build positions; the methods of building positions are: 1. Negative news-driven building, 2. Trap-style building, 3. Massive building, 4. Rebound-style building, 5. New project building.
Three, Testing the Market
As the name suggests, it is to test the market situation. By collecting feedback information, it prepares for future trading plans. However, the testing phase is not always necessary; some dealers may directly rally without a testing phase, which can occur at any stage.
Four, Consolidation
Consolidation is the dealer's way of organizing factors that do not align with the intention of sitting in the market to achieve the goal of locking in chips and accumulating energy. There are low-level, mid-level, and high-level consolidations. Price movements are nothing more than rising, falling, or consolidating (organizing), and most of the time, they are in a consolidation phase. This phase is the most annoying and tests the patience of investors.
Five, Initial Rally The dealer's intention to rally is to attract market attention and draw in outside funds, reducing the pressure of the rally for the dealer. However, the dealer will not raise the price too high; therefore, after raising the price for a distance, they will let it drop again to wash out the chips in the market.
Six, Washing Out
After the main force gains a certain amount of chips, in order to drive out following investors or those who originally held, they suppress the price of the coin. They acquire more chips at a low price while washing out the weak-willed retail investors in preparation for the next round of rallying.
Seven, Rallying
After the dealer goes through a series of work such as accumulating stock, testing the market, and washing out weak hands, both bulls and bears form a high degree of unity, making an upward trend inevitable. A rapid price increase is called a rally. From a cost perspective, the rally price level is above the target profit. The target profit is the minimum profit and price level set by the dealer when purchasing, which is determined by the limit that the coin can bear and the dealer's total cost.
Eight, Distributing Stock
As the saying goes: the one who knows how to buy is a disciple, while the one who knows how to sell is a master. This can apply not only to retail investors who can buy low and sell high but also to dealers who smoothly sell their stock. If the dealer's accumulation, washing, and rallying are means, then distributing chips is the goal. Distribution is a crucial stage for the dealer; only by distributing the chips can the profits on paper turn into cash.
Nine, Rebound
After the price has dropped, a brief recovery occurs, called a rebound. When the dealer is distributing stock, it will inevitably lead to a price drop, which may quickly reach the profit line set by the dealer. However, at this point, the dealer cannot sell all at once. In order to achieve the goal of selling at a high price, a rebound will occur. After the rebound ends, the price will quickly or slowly drop again, creating new lows. If one runs too slowly, they may get trapped. The rebound stage is a secondary stage in the dealer's process; some targets do not experience a rebound and instead see a sell-off.
1. During the dealer's operation, if unexpected negative news arises and a large sell-off occurs, the dealer may have no choice but to push the price down, which is considered a non-active behavior. This situation may lead to two outcomes: one is that the dealer vanishes without a trace, abandoning the operation. The other is to first push the price down and then quickly drive it back up.
2. Sell-off triggered by chip distribution in the later stage. After the dealer has distributed a large amount of chips at a high point, only a few chips remain, and they no longer need to consider market image and cost support. This portion of chips no longer poses a threat to profits.
3. Preparing for the new market triggered by the sell-off. After the dealer's manipulation, they intentionally push the price down with a small portion of the chips in hand to create a bearish atmosphere for the next round of low-chip accumulation.
Opportunities are reserved for those who are prepared!
Grasping opportunities is the key to success!
What are you still hesitating about!
