The knowledge point I want to talk about next is — rolling over
How to roll over:
In the crypto circle, you need to find a way to earn $1,000,000 in capital. To earn $1,000,000 from tens of thousands, there is only one way.
That is rolling over.
Once you have $1,000,000 in capital, you will find that your whole life seems different. Even if you don't use leverage, just holding spot positions will increase in value.
20%, then you have $200,000. $200,000 is already the income ceiling for most people in a year.
And when you can grow from tens of thousands to $100,000, you will also grasp some ideas and logic for making big money. At this time, your mindset will also calm down a lot; from then on, it's just about copying and pasting.
Don't always talk about millions or billions; start from your actual situation. Bragging only makes oneself comfortable. Trading requires the ability to identify the size of opportunities; you can't always trade lightly or heavily. Play with small positions regularly, and when a big opportunity arises, then bring out the big guns.
For instance, rolling over can only be done when a big opportunity arises. You can't keep rolling; it's okay to miss out because you only need to successfully roll three or four times in your lifetime to go from zero to tens of millions. Tens of millions is enough for an ordinary person to upgrade.
Join the ranks of wealthy individuals.
A few points to note about rolling over:
1. Enough patience. The profits from rolling over are enormous. As long as you can successfully roll a few times, you can earn at least tens of millions to hundreds of millions.
You cannot roll easily; you need to find high-certainty opportunities.
2. High-certainty opportunities refer to horizontal fluctuations after a sharp drop, followed by upward breakthroughs; the probability of following the trend is very high at this time.
Find the point of trend reversal and get on board from the beginning.
3. Only roll long;
▼ Rolling over risks
Let's talk about rolling over strategies. Many people think this is risky, but I can tell you, the risk is very low, far lower than the logic of opening a futures position.
If you only have $50,000, how to start with $50,000? First, this $50,000 should be your profit. If you're still losing, then don't look at this anymore.
If you open a position in Bitcoin at $10,000, set the leverage to 10 times, and use a specific position mode, opening only 10% of the position, which means opening only $5,000 as margin, this is actually equivalent to 1x leverage with a stop loss of 2%. If you stop loss, you only lose 2%, right? Only 2%? That's $1,000. How do those who get liquidated manage to lose everything? Even if you got liquidated, wouldn't it just be a loss of $5,000? How could you lose everything?
If you are right and Bitcoin rises to $11,000, you continue to open 10% of your total funds, set a 2% stop loss, and if you stop loss, you still earn 8%. Where is the risk? Didn't we say the risk is very high? Follow this pattern...
If Bitcoin rises to $15,000 and you have added positions smoothly, you should be able to earn around $200,000 from this 50% market. Catching two such market movements would be around $1,000,000.
There is no such thing as compounding; 100 times comes from two 10 times, three 5 times, or four 3 times profits, not from daily or monthly 10% or 20% compounding. That’s nonsense.
This content not only has operational logic but also contains the core trading mindset and position management. As long as you understand position management, you cannot lose everything.
This is just an example. The general idea is like this; specific details still need to be pondered on your own.
The concept of rolling over itself is not risky; not only is it not risky, but it is also one of the correct approaches to trading futures. The risk comes from leverage. You can roll with 10x leverage, or even with 1x; I usually use two or three times. Catching a couple of opportunities can yield dozens of times the profit, right? If not, you can use 0.6x leverage; what does that have to do with rolling over? This is clearly a matter of your own choice of leverage; I have never said to operate with high leverage.
Moreover, I have always emphasized that in the crypto circle, you should only invest one-fifth of your money, and only one-tenth of your spot money in futures. At this point, the funds used for futures only account for 2% of your total funds, and use only two or three times leverage, focusing solely on Bitcoin, which can be said to minimize the risk to a very low level.
$100,000 lost $20,000; would you feel hurt?
Always leveraging isn't meaningful. Many people say rolling over is risky, and that making money is just good luck. Saying these things is not to persuade you; persuading others is pointless. I just hope that those with the same trading philosophy can play together.
But currently, there is no filtering mechanism, and there are always harsh voices that appear, interfering with the recognition of those who want to watch.
▼ Capital management
Trading is not filled with risks; risks can be mitigated through capital management. For example, my futures account has $200,000, and my spot account ranges from $300,000 to $1,000,000+. When there's a big opportunity, invest more; when there's no opportunity, invest less.
With good luck, you can earn over 10 million RMB in a year, which is more than enough. If luck is bad, the worst-case scenario is that the futures account gets liquidated. It doesn't matter; the profits from spot trading can make up for the losses from futures liquidation. After compensating, you can reinvest; do you think spot trading can't earn a single penny in a year? I'm not that incompetent.
You can not make money, but you can't lose money. That's why I haven't been liquidated for a long time. Moreover, in futures, I often save one-fourth to one-fifth of the profits separately. Even if I get liquidated, some profits will be retained.
As an ordinary person, my personal advice is to play futures with one-tenth of your spot position. For example, with $300,000, use $30,000 to play, and when you gain exposure, inject the profits from spot trading. After experiencing ten to eight failures, you should be able to grasp some insights; if you haven't figured it out yet, don't play; this industry might not suit you.
▼ How to make big with small funds
Many people have misconceptions about trading, such as thinking that small funds should engage in short-term trading to grow. This is a complete misconception. This mindset is entirely about trying to exchange time for space, aiming for overnight wealth. Small funds should focus on medium to long-term trading to grow.
Is a piece of paper thin enough? If you fold a piece of paper 27 times, it will be 13 kilometers thick. If you fold it 10 more times to 37 folds, it will be thicker than the Earth. If folded 105 times, the entire universe would not be able to contain it.
If you have $30,000 in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... then you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.
Always remember, the smaller the capital, the more you should take a long-term approach, relying on compounded returns to grow. Don't engage in short-term trading for trivial profits. That’s all for today’s article. If you’ve read it, give me some attention. I will update more knowledge content in the future. This article is just my personal insights; any financial involvement is deceptive. Dear friends, protect your money.
If you want to seize this bull market, it's definitely too late to learn and apply it on your own. It’s best if someone can guide you to quickly get started.👈
