In the crypto circle, 90% of losses come from frequent trading
But true top players rely on 'rolling positions' for exponential asset growth
What is rolling positions?
Rolling positions means letting profits run, not rushing to secure them.
Ordinary players: run after making 10%, then miss big trends.
Rolling position players: floating profit adding positions, let the trend work for you.
The core logic of rolling positions
Trend is king: only roll positions in a bull market or strong trend, not suitable for a choppy market.
Floating profit adding positions: using profits to bet on greater profits, rather than risking the principal.
Move stop-loss up: as profits grow, gradually raise stop-loss levels to lock in profits.
Wrong rolling positions = gambling, correct rolling positions = compounding machine.
Practical skills for rolling positions
(1) Confirm the trend before taking action
(2) Pyramid adding positions method
Initial position: 20%-30% of funds for trial
Trend continuation: using profits to add positions in batches
The final position should not exceed 50% of total funds
(3) Dynamic profit taking, let profits fly
Breach the 10-day moving average? Reduce positions by 50%
Breach the 20-day moving average? Liquidate
Volume increase with stagnation? Take profits in batches
Remember: you won't go bankrupt from taking profits, but you might go to zero from greed.
4. The deadly trap of rolling positions
Counter-trend rolling positions: adding positions in a downtrend, the more you roll, the more you lose (typical: contract holding on)
Excessive leverage: rolling positions ≠ all-in, high leverage accelerates liquidation
Emotional trading: going all-in when FOMO, cutting losses when panicking
5. The highest realm of rolling positions: governing without action
After opening positions, look at the market less, trade less
Let the market move by itself; you only need to follow the trend
80% of profits come from 20% of the time; enduring loneliness is the key to maintaining prosperity
Trading maxims
The market is always right; the wrong part is the self-righteous prediction. Respect the market when making money, reflect on yourself when losing; market is the teacher, account is the exam paper.
Beware of greed at the peak, restrain luck during a retreat. True opportunities often hide in neglected places, not when the crowds are roaring.
Stop-loss is not a failure, holding on is the abyss. Discipline is the armor of trading, emotions are the fuse for losses.
Still the same saying, if you don’t know what to do in a bull market, click on my avatar to follow, bull market spot planning, contract password, free sharing.
I need fans, you need references. Guessing is not as good as following.
