Cryptocurrency Rolling Position Profit Strategy
Just like rolling a snowball, use the money earned to gradually increase your position, allowing profits to 'generate' profits on their own, but always make sure to fasten the 'seatbelt' on each investment to avoid losing all your principal due to a single mistake.
Step 1: Start with a small amount of money to test the waters. Don’t put all your money in at once; use 20%-30% of your principal to buy coins. For example, if you have a principal of 100,000, start by buying coins worth 20,000-30,000, and keep the remaining money for emergencies. When to buy? You can wait until the coin price drops to a clear support level or wait for technical indicators to show a signal for a price increase before you act.
Step 2: How to increase your position after making a profit? When the coins you purchased rise by 10%-20%, don’t be greedy and invest everything at once; take half of the profits to increase your position. For example, if you earn 10,000, use 5,000 to buy more coins, keeping your principal intact. When increasing your position, don’t chase after high prices; wait for the coin price to slightly pull back first.
Step 3: Set stop-loss for your investments: After each increase in position, set a 'bottom line' for yourself—if the coin price falls below your purchase price by 5%-8%, regardless of whether it will rise later, sell a portion first, limiting the loss to this amount and preserving most of your principal. Take profit: when the added position earns 10%, you can sell half to secure profits, while allowing the remaining portion to rise with the coin price, simultaneously adjusting the stop-loss line upwards.
Step 4: Control the amount of coins you hold; no matter how you increase your position, the total value of the coins you hold should not exceed half of your principal. For instance, if you initially buy 30%, after two increases, it should not exceed 50%, keeping half of your money to respond to declines, and don’t fire all your bullets. If the coin price keeps dropping, immediately stop increasing your position; this method should only be used when the coin price is slowly rising or fluctuating upwards, avoiding hard moves during declines. Try to choose well-known mainstream coins; small coins have too much price volatility and may suddenly drop sharply, making them unsuitable for this method. Avoid using this strategy during significant market drops or erratic rises, such as during a bear market when most coins are declining, as rolling positions can easily lead to losses; also be cautious during the late stages of a bull market when everyone is frantically buying coins, as corrections can happen at any time.
Successfully recoup your investment and double your account. Keep close to the old strategies, position yourself early, and enjoy the big gains!!!
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