In the cryptocurrency space, making 1,000,000 from tens of thousands has only one path, which is rolling operations.
This year, I personally tested the method below, turning 60,000 into 1,280,000!
Judging the Timing for Rolling Operations: Rolling operations are not something you can do whenever you want; they require certain backgrounds and conditions to have a higher probability of success. The following four situations are most suitable for rolling operations:
(1) Breakthrough after Long-Term Sideways: When the market has been in a sideways state for a long time, and the volatility drops to a new low, once the market chooses a breakout direction, consider using rolling operations.
(2) Major Drops in a Bull Market: In a bull market, if there is a sudden major drop after a significant rise, rolling operations can be considered for bottom fishing.
(3) Breakthrough at the Weekly Level: When the market breaks through significant resistance or support at the weekly level, consider using rolling operations to seize the breakthrough opportunity.
(4) Market Sentiment and News Events: When market sentiment is generally optimistic or pessimistic, and there are significant news events or policy changes that may affect the market, consider using rolling operations.
Rolling operations have a high probability of success only under the above four conditions; otherwise, one should proceed with caution or give up opportunities.
However, even when the market seems suitable for rolling operations, it is essential to strictly control risks, set stop-loss points, and prevent potential losses.
Technical Analysis +
Once you confirm that the market meets the rolling conditions, the next step is to conduct technical analysis. First, confirm the trend using technical indicators to determine the direction, such as moving averages, MACD, RSI, etc. If possible, use multiple technical indicators to jointly confirm the trend direction.
After all, it’s always good to be prepared. Secondly, identify key support and resistance levels to judge the effectiveness of the breakout, and finally utilize divergence signals to capture reversal opportunities. (Divergence Signal: When a certain coin price hits a new high, but MACD does not create a new high, forming a top divergence.
Divergence signals that prices will rebound, and one can reduce positions or short; similarly, when prices hit new lows but MACD does not create new lows, forming a bottom divergence indicating prices will rebound, one can increase positions or go long.
Position Management +
Once this step is done, we move on to position management. Reasonable position management includes three key steps: determining the initial position, setting increase rules, and formulating reduction strategies. I will give an example to help everyone understand the specific operations of these three steps:
Initial Position: If my total funds are 1 million, the initial position should not exceed 10%, that is, 100,000.
Position Increase Rules: Make sure to wait until the price breaks through key resistance before increasing positions. Each increase should not exceed 50% of the original position, meaning at most an additional 50,000.
Position Reduction Strategy: Gradually reduce positions when the price reaches the expected profit target. When it’s time to let go, do not hesitate. Each reduction should not exceed 30% of the existing position to gradually lock in profits.
As ordinary people, we should invest more when opportunities are abundant and less when they are scarce. If lucky, we can earn a few million, and if unlucky, we can only accept our losses. But I still remind you that when you make money, you should withdraw the invested principal and use the profits to play. It's fine not to make money, but you must not lose money.
4. Adjusting Holdings
After completing position management, the most critical step is how to achieve rolling operations through position adjustments; the operational steps are undoubtedly those few steps.
1. Choosing Timing: Enter the market when it meets rolling conditions.
2. Opening Positions: Open positions based on technical analysis signals, choosing suitable entry points.
3. Increasing Positions: Gradually increase positions as the market continues to develop in a favorable direction.
4. Reducing Positions: Gradually reduce positions when reaching predetermined profit targets or when the market shows reversal signals.
5. Closing Positions: When reaching profit targets or when the market shows clear reversal signals, completely close positions. Here, I share my specific rolling operation:
(1) Floating Profit Increase: When the invested asset appreciates, consider increasing positions, but the premise is to ensure that the holding cost has been reduced to minimize loss risks. This does not mean increasing positions every time there is a profit; rather, it is about doing so at the right time, such as during a converging breakout in a trend or after a breakout that is quickly reduced, or during a trend pullback.
(2) Base Position + Trading: Divide assets into two parts, keeping one part unchanged as the base position, while the other part is used for buying and selling during market price fluctuations to reduce costs and increase returns. The proportions can refer to the following three types:
1. Half Position Rolling: Use half of the funds for long-term holding and the other half for buying and selling during price fluctuations.
2. 30% Base Position: Hold 30% of funds long-term, using the remaining 70% for buying and selling when prices fluctuate.
3. 70% Base Position: Hold 70% of funds long-term, using the remaining 30% for buying and selling during price fluctuations.
The purpose of this is to maintain a certain position while optimizing holding costs through short-term market fluctuations.
Opportunities are reserved for those who are prepared!
Seizing opportunities is key to success!
What are you still hesitating about! 😎😎
