Cool evening can roll $1000 into $10 million, relying not only on market analysis but also on the important point of rolling positions.
What is rolling positions?
Rolling positions, in simple terms, is about using small funds to try multiple times and achieving doubled profits in a successful market trend through high leverage. Although the process sounds exciting, the core is actually risk control, precise judgment, and strict execution.
Case sharing: Rolling from $300 to tens of thousands of dollars
Suppose you have $300 (about 2000 RMB) to do rolling positions. You only take out $10 for each order, choosing 100x leverage. That's right, 100x leverage! This means that any 1% rise or fall will be magnified to 100 times the profit or loss.
First, the key is to be firm in your direction—whether it's bullish or bearish. Before placing an order, you must make a judgment and have the execution power, not to change direction arbitrarily. If you lose dozens of times in a row, it means your direction might be wrong. At this point, it's best to stop and reflect, and you may even need to temporarily exit the market and wait for a trend reversal.
But suppose you reach the 20th operation, and the market finally moves in the direction you expected. As long as the price rises or falls by 1%, you can earn $20 from $10. Next, you take out $10 as profit, and continue to invest the remaining $20. This process is called 'rolling positions'.
If there is another 1% rise or fall, $20 will become $40. At this stage, the cumulative fluctuation has reached about 2%, and your capital has already quadrupled. Continuing this strategy, in the common 10% volatility of Bitcoin over a month, you may soon be able to roll your principal into thousands or even tens of thousands of dollars.
Set clear goals
An important principle of rolling positions is to set clear goals. For example, when you earn $5000 or $10,000, stop rolling positions, take out profits, and reduce risks. This strategy helps you lock in profits and avoid being overly greedy in pursuit of larger goals, which could lead to liquidation.
The consequence of greed: If you do not take profits in time and continue to roll positions, you may likely end up getting liquidated due to a wrong judgment, making all previous efforts in vain. Therefore, controlling desires and setting a take-profit point is always the key to safe trading.
When should you start rolling positions again?
When you have already earned tens of thousands of dollars through rolling positions, you can choose to stop and wait. Wait for a clearer market trend, such as a major rise or fall cycle of a certain currency. At this time, you can continue to use $500 as capital, still using $10 for 100x leverage operations. By patiently waiting, once the market shows a unilateral trend, it may provide you with opportunities to achieve several times or even dozens of times returns within a few days.
But it should be noted that such opportunities are not common, and you may need several months or even a year or two to encounter a real big market. Moreover, the ups and downs in the market and false breakouts will expose you to many unpredictable risks. Therefore, the success of rolling positions relies not only on precise judgment but also on a lot of patience and self-discipline.
The real meaning of rolling positions lies in compound interest, and the true meaning of compound interest is to fully mobilize unrealized profits, that is, floating profits.
Many people playing contracts always get liquidated.
In summary, the reasons are simply the following points:
Can't resist: Always want to open positions, frequent operations, ignoring the overall trend of the market
No patience: Always thinking about making big money in a short time but unwilling to wait for a suitable opportunity.
Not executing the plan: Although there is a trading plan, it is not strictly followed in actual operations, leading to emotional trading and ultimately liquidation.
When playing contracts, the most taboo things are greed and impulsiveness. You need to strictly execute your trading plan, even if market fluctuations make you itchy, you must firmly control yourself. Otherwise, the final result will definitely be liquidation, or even total ruin.
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