In the crypto space, you need to find a way to first earn 1 million in capital. The only way to go from tens of thousands to 1 million is through rolling positions +.
When you have 1 million in capital, you will find that your whole life seems to be different. Even if you don't use leverage, if the cash rises by 20%, you will have 200,000, which is already the ceiling of income for most people in a year.
Moreover, when you are able to 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, and the future will just be a matter of copying and pasting.
Don’t always talk about millions or hundreds of millions. Start from your actual situation. Boasting only makes the bull comfortable. Trading requires the ability to identify the size of opportunities; you can’t always have a light position, nor can you always have a heavy position. Usually, play with small guns, and when the big opportunity comes, then pull out the heavy artillery.
For example, rolling positions can only be operated when the big opportunity comes. You can’t always roll; it doesn’t matter if you miss it. Because you only need to roll successfully three or four times in your life to go from zero to tens of millions, which is enough for an ordinary person to enter the ranks of the wealthy.
A few points to pay attention to when rolling positions:
1. Sufficient patience. The profits from rolling positions are huge; as long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions. So you can't roll easily; you need to find high-certainty opportunities.
2. High-certainty opportunities refer to a sharp decline followed by sideways consolidation and then an upward breakthrough. At this time, the probability of following the trend is very high. Find the point of trend reversal and get on board from the beginning.
3. Only roll long;
▼ Rolling Position Risk
Let’s talk about rolling position strategies. Many people think this is risky. I can tell you that the risk is very low, much lower than the logic of opening positions in futures.
If you only have 50,000, how to start from 50,000? First, this 50,000 should be your profit. If you are still losing, then don’t look.
If you open a position of 10,000 in Bitcoin with 10x leverage using isolated margin mode, only using 10% of the position, that means you are only using 5,000 as margin, which is actually equivalent to 1x leverage, with a 2% stop loss. If you hit the stop loss, you only lose 2%, just 2%? That's 1,000.
How do those who get liquidated actually get liquidated? Even if you get liquidated, isn’t it just a loss of 5,000? How can you lose everything?
If you are right, and Bitcoin rises to 11,000, you continue to open 10% of your total capital, also setting a 2% stop loss. If you hit the stop loss, you still earn 8%. Where’s the risk? Didn’t you say the risk is very high? And so on...
If Bitcoin rises to 15,000 and you successfully increase your position, you should be able to earn about 200,000 from this 50% market movement. Grabbing two such market movements would total around 1 million.
There is simply no compound interest; 100 times is earned by two rounds of 10 times, three rounds of 5 times, and four rounds of 3 times, not by compounding 10% or 20% every day or month. That’s nonsense.
This content not only has operational logic but also contains the core internal skill and mindset of trading, position management. As long as you understand position management, you cannot lose everything.
This is just an example, the general idea is like this, but specific details need to be pondered more by yourself.
The concept of rolling positions itself does not carry risk; not only is there no risk, but it is also one of the most correct approaches to trading futures. The risk lies in leverage.
10x leverage can roll, and 1x can as well. I usually use two to three times leverage. Grabbing two such opportunities is the same as earning dozens of times. If worse comes to worst, you can use 0.x leverage. What does that have to do with rolling positions? This is clearly your own choice of leverage. I have never said you should use high leverage to operate.
Moreover, I have always emphasized that in the crypto space, you should only invest one-fifth of your money, and at the same time, only invest one-tenth of your cash into futures. At this point, the funds for futures only account for 2% of your total capital, and futures should only use two to three times leverage, and only trade Bitcoin. This can be said to lower the risk to an extremely low level.
Will you feel heartbroken if you lose 20,000 out of 1 million?
If you keep leveraging, it becomes meaningless. There are always people saying that rolling positions is risky, that making money is just good luck. I am not saying this to convince you; it’s pointless to convince others. I just hope that those with the same trading philosophy can play together.
Currently, there is no filtering mechanism, and there will always be harsh voices appearing that disturb the recognition of those who want to watch.
▼ Capital Management
Trading is not filled with risk; risks can be mitigated through capital management. For example, I have 200,000 in my futures account, and my spot account randomly ranges from 300,000 to 1 million. When there is a big opportunity, I invest more; when there is no opportunity, I invest less.
With good luck, you can earn more than 10 million RMB in a year, which is quite enough. With bad luck, the worst-case scenario is that the futures account gets liquidated. It doesn’t matter; the profits from spot trading can compensate for the losses from futures liquidation. After compensating, you can jump back in. Can’t spot trading earn you anything in a year? I haven’t reached that level yet.
You can not make money, but you cannot lose money. Therefore, I have not been liquidated for a long time. Moreover, in futures, I often save one-fourth or one-fifth of my profits separately. Even if I get liquidated, the profits will still be retained.
As an ordinary person, my personal advice is to use one-tenth of your cash position to trade futures. For example, if you have 300,000, then take 30,000 to play. If it gets exposed, then invest the profits from spot trading. After you have been liquidated ten times or eight times, you will eventually grasp some internal insights. If you haven’t grasped them, then don’t play; this industry is not suitable for you.
▼ How Small Funds Can Grow Larger
Many people have misconceptions about trading. For example, they think that small funds should do short-term trading to grow the capital. This is completely a misunderstanding. This kind of thinking is trying to exchange time for space, hoping to become rich overnight. Small funds should do medium to long-term investing to grow.
Is one sheet of paper thin enough? If you fold a sheet of paper 27 times, it will be 13 kilometers thick. If you fold it 10 more times to 37 times, 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... This way, you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow, that will eventually lead to your demise.
Always remember, the smaller the capital, the more you should do long-term investing. Relying on doubling through compound interest to grow large is not advisable. Don’t engage in short-term trading for small profits.
