The knowledge point I want to discuss next is -- rolling over +
How to roll over:
In the crypto world, you need to find a way to first earn $1,000,000 in capital. To grow from tens of thousands to $1,000,000 in capital, there’s only one path.
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, holding spot investments will yield gains.
With 20%, you would have $200,000. $200,000 is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to $100,000, you can grasp some ways and logic of making big money. At this point, your mindset will calm down a lot, and from then on, it’s just a matter of copying and pasting.
Don't always talk about millions or a billion; start from your actual situation. Bragging only makes you feel good. Trading requires the ability to recognize the size of opportunities; you can't always trade with small positions or heavy positions. Usually, trade with small positions, and when big opportunities arise, then bring out the big guns.
For example, rolling over can only be done when a big opportunity arises. You can't keep rolling; missing out is okay because you only need to successfully roll over three or four times in your life to go from zero to tens of millions. Ten million is enough for an ordinary person to join the ranks of the wealthy.
Points to note about rolling over:
1. Enough patience. The profits from rolling over are enormous. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions.
You should not roll over easily; you need to find high-certainty opportunities.
2. High certainty opportunities refer to a sharp drop followed by horizontal consolidation, and then an upward breakout. At this point, the probability of following the trend is very high.
Find the point of trend reversal; you must get on board from the start.
3. Only roll long positions;
Rolling over Risks
Let’s talk about the rolling over strategy. Many people think there are risks, but I can tell you that the risk is very low, much lower than the logic of opening futures positions you play with.
If you only have $50,000, how do you use that to start? First, this $50,000 should be your profit. If you are still losing, then don’t look at it.
If you open a position at $11,000 for Bitcoin with 10 times leverage and use a split position mode, only opening a position of 10%, which is just $5,000 as margin, this is essentially 1 times leverage, with a 2% stop-loss. If you hit the stop-loss, you only lose 2%, right? That's just $1,000. How do those who get liquidated end up losing everything? Even if you do get liquidated, isn’t it just a loss of $5,000? How can you lose it all?
If you’re correct and Bitcoin rises to $11,000, you continue to open 10% of your total funds, similarly setting a 2% stop-loss. If you hit the stop-loss, you still make 8%. What about the risk? Isn’t the risk very high? And so on...
If Bitcoin rises to $15,000 and your additional investment goes smoothly, you should be able to earn around $200,000 from this 50% market movement. Catching two such market movements would yield around $1,000,000.
There is fundamentally no compound interest. 100 times is achieved through two 10 times, three 5 times, or four 3 times gains, not through daily or monthly compounding of 10% or 20%. That’s nonsense.
This content not only has operational logic but also contains the core trading principles and internal skills of trading, such as position management. As long as you understand position management, you cannot lose everything.
This is just an example; the general idea is like this. The specific details still need to be pondered over.
The concept of rolling over itself does not carry risks; it is not only risk-free but also one of the correct ways to trade futures. The risk arises from leverage. You can roll over with 10 times leverage or use 1 time; I generally use two or three times. If you catch two opportunities, isn't that the same as getting dozens of times in returns? If not, you can use 0. few times leverage. What does that have to do with rolling over? This is clearly your own choice regarding leverage; I have never said to use high leverage to trade.
Moreover, I always emphasize that you should only invest one-fifth of your money in the crypto sphere, while only investing one-tenth of your spot money to trade futures. In this case, the funds for futures only account for 2% of your total funds. At the same time, use only two to three times leverage and only trade Bitcoin, which can reduce the risk to an extremely low level.
If you lose $2,000 from $100,000, will you feel heartbroken?
It's pointless to always argue. There are always people saying that rolling over has high risks, and that making money is just about luck. I'm not saying this to convince you or others; that’s meaningless. I just hope that people with the same trading philosophy can play together.
It's just that there is currently no screening mechanism, and there will always be jarring voices that interfere with the acceptance of those who want to see it.
▼ Capital Management
Trading is not filled with risks; risks can be mitigated with capital management. For example, I have a futures account with $200,000 and a spot account that randomly ranges from $300,000 to $1,000,000. When opportunities are great, I invest more; when there are no opportunities, I invest less.
With good luck, you can earn over ten million RMB in a year, which is more than enough. If luck runs out, the worst-case scenario is that the futures account gets liquidated, but that doesn’t matter; the gains from spot trading can compensate for the losses from futures liquidation. Once compensated, you can dive back in. Is it really impossible to earn a single cent from spot trading in a year? I haven’t sunk that low.
You can choose not to make money, but you cannot afford to lose money. That’s why I haven't been liquidated in a long time. Plus, I often set aside a quarter to a fifth of my profits, and even if I get liquidated, I will still retain some of the profits.
As an ordinary person, my personal advice is to take one-tenth of your spot position to trade futures. For example, if you have $300,000, take $30,000 to trade. Once you’ve done this 8 to 10 times, you can start to feel a bit of the inner workings. If you haven’t figured it out yet, then don’t play; this line of work may not be suitable for you.
▼ How to grow small funds
Many people have misconceptions about trading. For example, they think that small funds should trade short-term to grow. This is completely misguided thinking. This mindset is simply trying to exchange time for space, hoping to get rich overnight. Small funds should actually focus on medium to long-term investments to grow.
Is the 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 times, it would be thicker than the Earth. If it’s folded 105 times, the entire universe wouldn't be able to contain it.
If you have $30,000 in capital, you should think about how to triple it in one wave, then triple it again in the next wave... that way you can reach four to five hundred thousand. Instead of thinking about making 10% today, 20% tomorrow... that will eventually lead to your downfall.
Always remember, the smaller the capital, the longer you should aim to invest. You should rely on compounding to grow big, not engage in short-term trading for small profits. I’ll stop today's article here. If you’ve finished reading, please give me some attention. I will update more knowledge content in the future. This article is just personal insights; anything related to money is a scam. Everyone, protect your wallets. Meeting adjourned.
