Many friends in the crypto community often ask how to trade with small capital to grow big. Many of them probably started from small capital; no one starts with large capital or all their assets to trade cryptocurrencies.
Next, I want to talk about this knowledge point—rolling warehouses.
How to roll warehouses:
In the crypto world, you need to find a way to earn 1 million in capital. The only way to make 1 million from tens of thousands is one path.
That is rolling warehouses.
Once you have a capital of 1 million, you'll find that your whole life seems different. Even if you don't use leverage, the spot market can still rise.
With 20%, you would have 200,000. 200,000 is already the income ceiling for most people in a year.
Moreover, when you can turn tens of thousands into 100,000, you will grasp some ideas and logic for making big money. At that time, your mindset will also calm down a lot, and from then on, it's just copying and pasting.
Don’t always think about millions or billions; start from your actual situation. Bragging only makes the braggers comfortable. Trading requires the ability to identify the size of opportunities; you can't always trade with a small position nor always with a heavy position. Usually, trade with a small position, and when a big opportunity comes, then pull out the big guns.
For example, rolling warehouses, this is a big opportunity that can only be operated when it's time to take it; you can't keep rolling. Missing out is fine because in your lifetime, you only need to roll successfully three or four times to go from zero to tens of millions. Tens of millions are enough for an ordinary person to advance.
The ranks of wealthy individuals.
A few points to note when rolling warehouses:
1. Enough patience. The profits from rolling warehouses 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 cannot easily roll; you need to find high-certainty opportunities.
2. High-certainty opportunities refer to a sharp drop followed by sideways consolidation, then a breakout upwards. In this case, the probability of following the trend is very high.
Find the point of trend reversal and get in right from the start.
3. Only roll long positions;
▼ Risks of rolling warehouses.
Let’s talk about the rolling warehouse strategy. Many people think it’s risky. I can tell you that the risk is very low, far lower than the logic of opening positions in futures.
If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit. If you're still at a loss, don't look further.
If you open a position at 10,000 in Bitcoin with a leverage of 10 times, using isolated margin mode, only opening 10% of the position means using 5,000 as margin. This is equivalent to 1x leverage. With a 2% stop loss, if you stop out, you only lose 2%, which is 1,000. How do those who liquidate actually liquidate? Even if you get liquidated, isn't it just a loss of 5,000? How could you lose everything?
If you're right and Bitcoin rises to 11,000, continue to open 10% of your total capital, also set a 2% stop loss. If you stop out, you still earn 8%. Where's the risk? Isn’t the risk supposed to be huge? And so on...
If Bitcoin rises to 15,000 and you successfully increase positions, in this wave of 50% market, you should be able to earn around 200,000. Grabbing two such market waves could yield around 1 million.
There is no such thing as compounding; 100 times is earned through two 10 times, three 5 times, and four 3 times, not through compounding 10% or 20% every day or month. That's nonsense.
This content not only has operational logic but also contains the core internal methods of trading, position management. As long as you understand position management, you won't lose everything.
This is just an example. The general idea is like this; the specific details still require you to ponder more.
The concept of rolling warehouses itself is not risky; not only is it not risky, but it's also one of the correct ways to trade futures. The risk lies in leverage. You can roll with 10x leverage, but you can also do it with 1x. I usually use two to three times leverage. Grabbing two opportunities is still tens of times profit. At worst, you can use less than 1x leverage. What does this have to do with rolling warehouses? This is clearly your own choice regarding leverage. I have never said to use high leverage to operate.
Moreover, I always emphasize that in the crypto world, only invest one-fifth of your money, and only invest one-tenth of your spot money in futures. At this time, the funds for futures only account for 2% of your total capital, and futures should only use two to three times leverage, and only play Bitcoin. You could say that the risks are reduced to an extremely low level.
Would you feel pain if 200,000 turned into 198,000?
Always relying on leverage is meaningless. There are always people saying that rolling warehouses are risky, that making money is just about good luck. I don’t say these to persuade you; it’s pointless to convince others. I just hope that people with similar trading philosophies can play together.
Currently, there is no screening mechanism, and there will always be harsh voices that interfere with the recognition of those who want to see.
▼ Capital management.
Trading is not inherently risky; risks can be resolved through capital management. For example, I have a futures account of 200,000, and a spot account ranging from 300,000 to over 1 million. If there's a big opportunity, I invest more; if there's no opportunity, I invest less.
With good luck, you could earn over 10 million RMB in a year, which is more than enough. With bad luck, in the worst-case scenario, the futures account gets liquidated, but it doesn't matter. The profits from the spot market can cover the losses from the futures liquidation. After compensating, you can dive back in. Can you really not earn a penny from the spot market in a year? I'm not that bad.
You can avoid making money, but you cannot afford to lose money. That's why I haven't been liquidated for a long time. Moreover, I often save a quarter or a fifth of my profits from futures separately. Even if I get liquidated, I will still retain part of the profits.
As an ordinary person, my personal advice is to take one-tenth of your position in the spot market to play futures. For example, if you have 300,000, take 30,000 to play. Once exposed, use the profits from the spot market. After blowing up ten or eight times, you'll surely grasp some principles. If you still haven't, then don't play; this field is not suitable for you.
▼ How to grow small capital.
Many people have misconceptions about trading. For instance, they think that small capital should focus on short-term trading to grow the capital. This is a complete misconception. This kind of thinking is simply trying to exchange time for space, hoping to get rich overnight. Small capital should focus on medium to long-term trading to grow.
Is a piece of paper thin enough? If a piece of paper is folded 27 times, it's 13 kilometers thick. If folded 10 more times, it will be folded 37 times, which is thicker than the Earth. If folded 105 times, the entire universe will 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'll have 400,000 to 500,000. Instead of thinking about earning 10% today, 20% tomorrow... This way, you'll eventually lose everything.
Always remember, the smaller the capital, the more you should focus on long-term strategies, relying on compounding to grow big. Don’t engage in short-term trading for small profits. This article ends here, and for those who read it, please give me a follow for more knowledge updates in the future.
Continuing solo and relying on luck to make money will ultimately lead to losing based on skill, getting drowned in the market tide!
The market never lacks opportunities; the question is whether you can seize them. Only by following the right people can you survive long-term in the market and earn more!
Want to double the account, want to enjoy big profits, want to successfully recover costs.
Stay close to Sister Xin and position yourself in the main upward trend of the bull market!
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