Using the most down-to-earth story of 'buying milk tea' as an analogy, it will definitely help you understand what rolling positions in the crypto world is, and why 'rolling to the end' is as difficult as climbing to the sky—
Scene setting: You opened a 'milk tea shop' in the crypto world (speculating on coins)
Assume you have 1000 yuan in capital, and you have your eye on a token called 'Bobo Coin' (a fictional case, do not take it literally), with a current price of 10 yuan each. You think it will rise in price and decide to try a rolling position strategy.
First cup of milk tea: Light position trial (initial opening)
Action: First, use 100 yuan (10% of total capital) to buy 10 Bobo Coins, choose 2x leverage (equivalent to borrowing 100 yuan, total holding 20 coins), set the stop loss at 9 yuan (if it drops 10%, you exit, with a maximum loss of 20 yuan in capital).
Result: Good luck, Bobo Coin rises to 12 yuan each, profit of 40 yuan (20 coins × 2 yuan), account becomes 100 yuan capital + 40 yuan profit = 140 yuan.
Second cup of milk tea: Adding position with profit (first rolling position)
Action: According to plan, use 50% of the profit (20 yuan) to add to the position, keeping leverage the same, buy 1.67 coins (20 yuan ÷ 12 yuan), total holding becomes 21.67 coins.
Key action: Move the stop loss up to the breakeven price of 10.5 yuan (to ensure no loss of capital).
Result: Bobo Coin continues to rise to 15 yuan each, profit = 21.67 coins × (15-12) = 65 yuan, account becomes 100 yuan capital + 105 yuan profit = 205 yuan.
Third cup of milk tea: Greedily increasing position (second rolling position)
Action: Seeing the market booming, you invest 80% of the profit (84 yuan), increase leverage to 5x (wanting to make money faster), buy 5.6 coins (84 yuan ÷ 15 yuan × 5x leverage), total holding becomes 27.27 coins.
Risky detail: Thinking the upward trend is strong, you cancel the stop loss (thinking 'a pullback is an opportunity to add to the position').
Result: Bobo Coin suddenly plummets, dropping from 15 yuan to 11 yuan, your account margin is insufficient, leading to a liquidation—losing all 100 yuan capital + 105 yuan profit**, leaving you with no money even for a cup of real milk tea.
Why is it so difficult to 'roll to the end'? Here are 3 harsh realities
1. The market doesn't follow the script:
90% of the time in the crypto world is volatile; a strong upward trend (like Bitcoin rising from 30,000 to 60,000) happens once every few years. Most of the time, it goes up for two days and down for three, making it easy to get stopped out or liquidated during volatility.
Analogy: You think the milk tea shop will have booming sales every day, but suddenly three competing shops open next door, and foot traffic drops sharply.
2. Human weaknesses will lead to failure:
Rational when making small profits, but inflated when making big profits (for example, during the second rolling position, you dare to add leverage); when it drops a bit, you think 'add to the position to average down', but end up getting deeper into trouble (commonly known as 'catching falling knives').
Analogy: The milk tea shop earned 50 yuan on the first day, you think 'I must earn 100 yuan tomorrow', so you borrow money to expand the shop, but the next day it rains and no one goes out.
3. Costs eat into profits:
Every time you roll a position, you have to pay fees and contract funding costs; with frequent operations, profits may be 'eaten' by fees by half.
Analogy: Every time you stock up, you have to give a cut to the middleman; selling 10 cups of milk tea, 2 cups' worth is fees.
Ordinary people want to roll positions? Remember these 3 life-saving rules
1. Only roll profits, not capital:
Every time you add to your position, only use the money you've made; for example, if you made 40 yuan the first time, use at most 20 yuan to add to the position, don't touch the capital!
(Just like a milk tea shop using profits to open a branch, don't mortgage your house to stock up)
2. Set a 'foolproof profit-taking' strategy:
Set a target in advance, for example, sell 20% of your position every time it rises by 20%, pocketing the profit.
(The milk tea shop closes after making enough profit of 200 yuan for the day, not greedy for that last cup)
3. Leverage ≤ 3x, never add to the position:
The higher the leverage, the lower the tolerance. Under 3x leverage, a 30% drop in coin price will lead to liquidation, while a 20% drop under 5x leverage will wipe you out.
(Equivalent to a milk tea shop borrowing a maximum of 300 yuan, don’t borrow 500 yuan, or you'll go bankrupt after a storm)
In plain language: Rolling positions is not 'rolling a snowball', but 'walking a tightrope'
Successful rolling requires timing (unilateral market) + location (low leverage) + human factors (counterintuitive actions); all three are indispensable;
Most people end up 'rolling off a cliff' because the market won't keep rising, while your greed will keep amplifying.
Final reminder: If you don't even have the mindset of 'not caring about losing when buying milk tea', don't touch rolling positions—crypto's milk tea might be 'poison milk tea'.
Want to double your account, want to enjoy big profits, want to successfully make back your losses
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