A simpler explanation of rolling over is: the bold get rich while the timid starve.
The rolling over method: In 2018, I knew of a wave in the market, and 2 people got rich through this method~ It really was just one wave that made them rich, but more people ended up losing.
Talking about it, for many people who trade futures, they like to casually talk about it without looking at the market, whether to roll over or not, it’s just based on their mood... The two better rolling opportunities in 2018 were in April for EOS and the subsequent surge of BCH.
If rolling over fails once, it’s game over... No matter how much you made before, just one failure means it's over; the key is that rolling over will keep putting you in an unfavorable position time and time again.
The difficulty lies in judging the big market. After all that talk, I will detail how to use the rolling over method and how to make judgments.
The literal meaning of rolling over is to continuously roll your position. For example, when EOS was at 2 USD, we judged that a big market was coming, and we thought EOS would reach 1000 RMB!!!!
So I choose to open a long position on EOS at 2 USD, assuming I use 100 EOS. A leverage of 20 times. So when EOS reaches 2.1 USD, I already have 200 EOS, at this point I choose to close the position. Then I use 200 EOS to go long at 2.1 USD. So when EOS is about 2.205 USD, I have 400 EOS... and keep rolling like this~ No joke, EOS hasn’t reached 1000, but when EOS hits 150, how much do you think I have? Scary, right? This is just considering the principal of only 100 EOS.
In normal futures, when EOS reached 2.205 USD, your EOS would be about 300. This has already created a gap of 100 EOS, and we’ve only rolled over once. Everyone knows how high the compound interest return can be.
Of course, it is accompanied by huge risks!!!! If: We keep rolling over from 100 EOS at 2 USD. When it reaches 150 RMB per EOS!!! We are already fantasizing about a beautiful future. We hold so many EOS that we can’t count, and choose to go long again at 150, after all, EOS should reach 1000 each in 2018. Suddenly: the milk can't move~ The star halo disappears~ It crashes, in a bull market, your mind is filled with fantasies, if you’re not careful... it’s game over... All success falls apart.
Normal futures: At this time, starting at 2 USD, even if it falls back, but when it hits 150, there is still a huge space and time to take profits!!! And there are many, just fewer than rolling over!
Rolling over is like this, one mistake can lead to irreversible consequences~ Of course, you might say what if I judge the market correctly? That kind of market only appears in extreme situations, that is to say, in a bull market, or when coins take off~ Don’t try to convince me, if it keeps falling, opening short positions to roll over? I’ll say it again, a continuous decline is not a bear market for me; it is also a bull market! It’s just a bull market that doesn’t belong to retail investors.
Coin single fly~ I personally witnessed a retail investor making a fortune during that wave of BCH... He really knew nothing, he just simply asked me about the roll-over operation, anyway, he opened with a loss of more than 40% and didn’t care, didn’t look... In the end, this is how it went, rolling over from 50,000 RMB to nearly 3 million in just a week... it was during that BCH surge.
Do you think his market judgment is impressive? No, he didn’t understand anything, didn’t look at K-lines, just mindlessly rolled over... He kept rolling until he saw more money and had to settle. He took money out to spend and only then closed the position... Do you think anyone can always correctly judge the market? Isn’t there a chance of making a mistake along the way? I don't believe it... There will always be times when mistakes happen.
So: Friendly advice: In a situation where you judge the market well. Use rolling over sparingly, do it 2 or 3 times, take profits when you see them... If we compare commodity futures to the spot market of digital currencies, the risk is quite similar. Therefore, the risk of digital currency futures is greater than that of digital currency spot! The risk of rolling over futures is still significantly greater than that of digital currency futures.
Successfully recouped losses, account doubled. Stay close during rainy days, position yourself in advance, and enjoy big profits!!!
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