In the cryptocurrency world, if you only have several thousand yuan but are eagerly hoping to earn 1 million in capital, to be honest, rolling positions is basically the only way to go. Once you really have 1 million in capital, that feeling is like opening the door to a new world, and your entire life will be different. For example, in spot trading, if you don't use leverage and the price rises by 20%, that means a gain of 200,000. This amount is something many people work hard for an entire year and still can't earn; it's a guaranteed income ceiling.
Moreover, when you can turn several tens of thousands into 1 million, what does that indicate? It means you have touched upon some ways to make big money, grasped the underlying thoughts and logic, and your mindset will also stabilize. Going forward, you can just replicate the successful experiences from before. Never start off with high ambitions, fantasizing about making tens of millions or even billions overnight, as that is too unrealistic. In the cryptocurrency trading world, you need to have sharp eyes to identify the size of opportunities. You cannot always trade lightly and miss good chances to make money; nor can you frequently trade heavily, putting yourself in a dangerous position. During normal times, use small positions to practice and get a feel for things, and once a big opportunity arises, strike with full force.
Rolling positions cannot be played at any time; you can only operate when a big opportunity arises, so do not use it frequently. If you accidentally miss an opportunity, don’t be frustrated; just remember, if you can successfully roll positions three or four times in your life, you can transform from being broke to having millions. Millions! That's enough to elevate an ordinary person into the ranks of the wealthy.
Surely someone will ask, what situations are suitable for rolling positions? Currently, there are three such situations: First, when the cryptocurrency price is stagnant for a long time with pitiful volatility, resembling a stagnant pool of water; this often indicates that a directional choice is about to be made, so decisively rolling positions could lead to a significant market movement. Second, in a bull market, after a significant price increase, if there is suddenly a large drop, rolling positions at the bottom has a good chance of success, as the price is likely to rise again after the bull market correction. Third, when the price breaks through significant resistance or support levels on a weekly chart, this is a key signal; once broken, the trend is likely to continue, making rolling positions extremely effective.
So what exactly is rolling positions? In simple terms, it's when you rely on leverage to make a fortune during a trending market, and during this time, the overall leverage passively decreases. To continue growing your wealth like a snowball and achieve compound interest, you have to seize the right opportunity to increase your position. This process of increasing positions is called rolling positions.
How exactly to operate? There are two common methods. One is to add positions with unrealized gains, meaning if you already have unrealized gains, you can consider adding to your position. However, you must ensure that your holding cost has decreased before adding positions to minimize the risk of loss. Don’t blindly add positions just because you see profits; you need to choose the right timing. The other method is base position + rolling trading. Divide your available funds into several parts, keeping one part as a base position that remains unchanged, while another part is used for high selling and low buying. How much to keep as a base position and how much to roll depends on your own risk preference and capital scale. Some people prefer to roll with half of their position, some think that keeping 30% as a base position is safer, and others, being bolder, choose to roll with 70% as a base position. In short, do what feels right.
In short, this strategy of rolling positions has high risks and high returns, making it suitable for when big opportunities arise. During normal times, you must remain calm and patiently wait for the right moment. Once the opportunity presents itself, don't hesitate—act decisively. If you succeed a few times, you can achieve a leap in wealth, soaring forward and completely changing your life.