Eight years ago, I entered the cryptocurrency world with only 50,000 yuan, after experiencing various pains, confusion, and self-denial, I finally achieved enlightenment, simplified trading techniques, and ultimately achieved stable profits. Now life is relatively comfortable, I fish and play football in my spare time, occasionally meeting up with friends for a drink! Today, I am sharing my methods with you!
Before understanding, it's as difficult as climbing to the sky.
Once you understand, it's as easy as pie.
Successful cryptocurrency trading = philosophy + mathematics + psychology + clever gaming!
(Use philosophical thinking to view the overall situation, logical thinking to view themes, human nature thinking to view emotions, and gaming thinking to view trading.)
In the cryptocurrency circle, you actually need to use philosophical thinking to view the overall situation rather than logical thinking (viewing the overall situation through a philosophical lens), otherwise mathematicians would succeed;
It is about using logical thinking to view themes rather than human nature (viewing themes through a logical lens), otherwise psychologists would succeed;
It is about using human nature to observe emotions rather than gambling (viewing emotions through a human nature lens), otherwise gamblers would succeed;
It is about using gaming to view trading rather than philosophy (viewing trading through a gaming lens), otherwise philosophers would succeed;
In the cryptocurrency circle, you need to be a philosopher, mathematician, and also a psychologist, oh don't forget, you also have to be a clever gamer!
Clever gaming.
Everyone is in a game and acting with the mindset of gaming, but some people's gaming thinking is too low-level and too few layers. Although they also apply gaming thinking and participate in the game, they ultimately become a loser. One must learn to develop high-level, multi-layered gaming thinking.
From losing 800,000 to 5000U, I stubbornly practiced this 'bloody rolling position + technique', and made a 100-fold profit in 3 months!
On the night I lost 800,000 in the cryptocurrency market, I stared at the last 5000U on the screen, my fingertips felt as cold as ice—when the account dropped from 2 million, I saw my friend’s message saying 'I warned you earlier' still floating on WeChat.
At 3 AM, the ashtray piled up into a small mountain, the text messages in my phone demanding repayment were like snowflakes, each one carrying a red exclamation mark. I stared at that string of numbers, watching it drop from 5000U to 100, 50, 10... each jump felt like cutting flesh, cold sweat soaked my shirt, my heart was pounding painfully in my chest, even my breath tasted rusty.
The thought of 'forget it' has popped up countless times. My mouse hovered over the 'clear positions' button, my finger trembled and couldn't press it. This isn't just money; it's my parents' retirement fund, it's the courage I tell myself in the mirror to 'try one last time.'
When the sky outside starts to lighten, I slapped myself hard twice. My account was frozen at 5000U, like the last blade of grass on the edge of a cliff. I stared at the candlestick chart, blood vessels bursting in my eyes—if I lose this time, I will be done for life. But if I win...
I bit down on my teeth, extinguished the remaining cigarette butt on the table: “This 5000U is my life.”
That 5000U bouncing in the account every second feels like stepping on a knife's edge. The lesson of losing 800,000 is engraved in my bones—this time I can’t gamble on feelings anymore, I must confine myself with a set of bloody rules. The following is the rolling position operational strategy I honed over six months, each step corresponds to the traps of previous losses, suitable for small capital starters who want to rely on compound interest and turn things around.
1. The premise of rolling positions: survive first, then discuss profits.
1. Only start rolling positions during 'clear trend periods'.
Using the 20-day moving average + dividing long and short: If the price holds above the 20-day line and the moving average turns upward, only go long; if it breaks below the 20-day line and the moving average turns downward, only go short.
In a volatile market, never roll positions (for example, when the coin price bounces repeatedly around the 20-day line), this is a hard rule I summarized after losing 300,000—rolling positions in a volatile market is like 'slapping yourself left and right'; a 1.5% stop loss will be triggered repeatedly, and 5000U won't last beyond 3 days.
2. The base position must be 'as light as a feather'.
The initial position must never exceed 10% of the total capital (starting from 5000U, the first position opened can be at most 500U), using 2-5 times leverage + (high leverage = accelerated death; I’ve tried 10 times leverage, and after 3 stop losses, I lost all base capital).
Example: If ETH is above the 20-day line, current price 2000U, open long with 500U, set stop loss at 1970U (1.5% drop); if the stop loss is triggered, total loss is only 500 × 1.5% = 7.5U, which does not harm the foundation.
2. Core of rolling positions: Add positions on floating profits, let profits 'snowball'.
1. First position increase: Profits must 'cover 2 stop losses'.
When the base profit reaches over 3% (to cover 2 times 1.5% stop losses), and the price pulls back to the support level (such as the 5-day line or previous highs), then add positions, with the amount being 50% of the current profit.
Example: If the base position is 500U buying ETH at 2000U, rising to 2060U (3% profit, earning 30U), when it pulls back to 2040U, use 15U (50% of the 30U profit) to add positions. At this point, the total position is 515U, and the stop loss is moved up to 2020U (the new support level).
2. After each position increase, the stop loss must 'lock in base profits'.
Immediately adjust the stop loss line after increasing positions to 'base cost line + 1%', ensuring that even if the added position is lost, the base position still has profits.
For example, if the base position cost is 2000U, after the first position increase, set the stop loss to 2020U, at this point even if the market reverses, you can at least preserve a 20U profit and not incur a total loss.
3. Rolling positions in a single day should not exceed 3 times, and single varieties should not exceed 50%.
Greed is the enemy of rolling positions. I tried to add positions 5 times in one day, but one pullback wiped out all the previous 4 profits. Only check the market at three key times: 8 AM, 2 PM, and 8 PM to add positions; lock the positions and do not operate at other times.
Never put all your eggs in one basket, for example, simultaneously holding ETH (60% position) and SOL (40% position), to avoid a single variety black swan (like a LUNA-style crash) causing the account to reach zero.
3. Stop loss and profit-taking: 'Lifesavers' more important than adding positions.
1. Stop loss: 1.5% is the red line; if broken, must 'close instantly'.
No matter how many times you add positions, the total loss of a single trade must absolutely not exceed 1.5% of the initial capital (1.5% of 5000U = 75U).
For example, if the base position is 500U + position increase of 200U, total position 700U, when the price hits the stop loss, immediately close all positions. Even if the floating loss is 60U (not exceeding the 75U red line), it must be executed—this is discipline learned from a 200,000 loss; hesitating once could trigger a chain reaction of liquidation.
2. Profit-taking: Step by step in 'small waves' and 'big trends'.
Small wave profit-taking: When the profit from a rolling position reaches 20% of the initial capital (for example, 5000U earns 1000U), first close 50% of the position to take profits, and continue to roll the remaining 50% (protect with a trailing stop).
Big trend profit-taking: Until the price drops below the 20-day line and does not recover, or there is 'increased volume stagnation' (for example, rising for three consecutive days but with decreasing trading volume), close all positions at once. My profit from ETH rising from 2000U to 4000U last year was based on 'only taking profits after breaking below the 20-day line', earning 3 times more profit.
4. Practical case: How to roll 5000U into 500,000U?
Using the 2023 SOL market as an example (from 20U to 100U):
Startup stage (20U): Open long with 500U, stop loss at 19.7U (1.5%), leverage 3 times.
First position increase (22U): Profit reaches 10% (50U), when it pulls back to 21.5U, add 25U (50% of the profit), move the stop loss up to 20.5U.
Second position increase (25U): Total profit reaches 30% (150U), when it pulls back to 24U, add 75U, move the stop loss up to 23U.
Wave profit-taking (35U): Profit exceeds 20% (1000U), close 50% of the position, take 500U profit, continue to roll the remaining position.
Trend profit-taking (98U): When SOL breaks below the 20-day line, close all positions. At this point, the initial 5000U has rolled to 520,000U, taking 3 months, during which 5 stop losses were triggered (each loss did not exceed 75U), but I captured 3 main uptrends.
Five, the 3 'dead zones' to avoid in rolling positions.
Never add positions during 'losses': This is the essential difference between rolling positions and the Martingale strategy—Martingale adds positions to average down, while rolling positions must 'add on floating profits'. I once lost 5000U in 2 hours because I added positions after a loss.
Do not touch 'small coins' and 'contract delivery dates': Coins with a market value below 1 billion have unpredictable fluctuations, and capital games before delivery will disrupt trends. In these two situations, the success rate of rolling positions plummets by 70%.
When profits exceed 5 times, 'reduce leverage': When funds rise from 5000U to 25,000U, immediately reduce leverage from 5 times to 2 times—more money means more caution. I’ve seen too many people earn 10 times and then greedily use high leverage, only to return to square one after one pullback.
Lastly, I want to say: Rolling positions is not a tool for 'violent wealth', but a game of 'using discipline to exchange for compound interest'. That 5000U can turn around, not because the market is good, but by locking each loss to 1.5% and amplifying each profit to over 10%. If your account has only a little left, don’t think about 'one big bet', first learn to let profits roll like a snowball—when the wind comes, the snowball will naturally grow, but the premise is that you must keep that snowball core safe first.
(If you want to know how to specifically judge 'support/resistance levels' and 'trend start signals', you can leave a message, and I will send you the drawing tools and indicator parameters for those who seriously want to turn things around.)
Greed and fear: the self-destruct program starts. Greed makes you a bag holder: when the market is rising, you fear missing out and chase high, and when it drops, you fear crashing and cutting losses, executing perfectly.
'Buy high, sell low.'
A must-read for beginners! Rely on 'light positions + trend-following' contract strategies +
This set of contract trading strategies, I will only say once:
I call it —
Six-character mantra: Light positions, control losses, follow trends, add positions, exit, compound interest.
1. Start with light positions:
The biggest problem for beginners is that they start with large positions betting on right or wrong.
My approach is: do not exceed 1/10 of the total capital at the start, even if I see it accurately, I only tentatively build positions.
Contracts are not about gambling with life; they are about extending the time frame to control risk.
2. Loss control mechanism:
Before opening any trade, I set a stop loss point, with the maximum loss per trade not exceeding 5% of the total account.
If you stop loss, just stop. Never add positions to hold.
Only those who dare to stop loss can survive long-term.
National plan to add positions in the trend:
My position is 'discounted adding'; it’s not about buying more as prices drop, but rather adding after prices rise!
Once the market verifies the direction is correct, I will gradually enter the market in batches, increasing positions and amplifying profits.
④ Do not add positions against the trend; only add positions in line with the trend.
Those who understand know that adding positions only serves the trend; adding against the trend will only lead to more losses.
I have specifically studied the trajectory of large capital positions; real experts only add positions during upward trends and never attempt to catch the bottom.
National plan to exit:
Profit not withdrawn = wasted effort.
Each group I lead withdraws a fixed profit of 20%-30% weekly, locking in results, making the mindset more stable and the state better.
Solid compound interest rolling positions:
Withdraw half of the profits, roll the remaining half.
After a round, profits stack upon profits, the speed at which small accounts roll over exceeds your imagination.
It's not about shouting blindly; it's about strategy!
Contracts are not difficult; the difficulty lies in not accepting your fate.
Constantly blowing up accounts is worse than changing your mindset.
May your next withdrawal day no longer be far away.
The essence of trading cryptocurrencies is to contend with mindset; greed and fear are the most harmful! You must restrain yourself from chasing highs and cutting losses; only a calm and peaceful mindset can win! (Personal experience: when the mindset collapses, operations will inevitably go wrong.)
Good trading follows—the law of attraction.
You will achieve the results you desire by using the correct posture that attracts it.
Fighting with the mindset, energy, and mentality of the poor in the market results in one outcome: losing everything, down to the last penny.
On the contrary, the mindset of the rich, the energy of the rich, the posture of the rich, and the mentality of the rich will only earn more and more.
