In the field of leveraged trading like cryptocurrencies, 'rolling positions' is often viewed as an aggressive strategy for small capital to seek high returns. Many stories have circulated in the crypto community.

A case of achieving wealth elevation through this: In 2021, Master Tony started with 50,000 Yuan, using high leverage and rolling positions strategy, within a year.

Profits reached 20 million Yuan; during severe market fluctuations, Liangxi also used 10,000 Yuan to short, gaining tens of millions through rolling positions. These cases.

Cases like 'rolling positions' have become hot topics, but its essence and risks are far more worthy of in-depth study than the stories suggest.

What is rolling positions?

In simple terms, rolling positions are a trading method of 'small bets for big gains and compounding'.

Using a small amount of capital to try multiple times, leveraging high leverage (such as 100 times) to amplify returns and capture a wave of trending market to double the investment.

The core logic is: invest a small proportion of funds in a single position, withdraw part of the profits after making gains, and continue to increase the remaining funds, operating in cycles.

Expand profits, while strictly controlling risks through stop-loss measures.

Rolling positions practical logic (taking $300 as an example).

1. Small position trial and error: Each time using $10 to open a position with 100x leverage, a 1% market fluctuation can double the principal (earning $10) or wipe it out.

(account 10 dollars).

2. Strong direction: Pre-judge the direction of price movements, and when experiencing consecutive losses, reflect on whether the direction is wrong and stop in time.

3. Compound interest rolling: After the first profit, withdraw $10 profit and continue to open positions with the remaining $20; if further profits are made, it becomes $40.

Yuan, and so on.

4. Take profit lock: Set clear goals (such as making $5,000 or $10,000), exit immediately after reaching the target to avoid greed leading to losses.

Spit.

The core premise of rolling positions.

Accurate judgment: Need to have a clear understanding of market trends, capturing one-sided markets (such as Bitcoin's monthly fluctuation of about 10%).

Strict self-discipline: Control the frequency of operations, do not frequently open positions; adhere to take profit and stop-loss rules, eliminate emotional trading.

Patient waiting: Major markets are not always available; one may need to wait for months or even years, avoiding blind operations in a volatile market.

Why do most people get liquidated when trading contracts?

Unable to refrain: Ignoring trends and frequently operating, with fees and slippage continuously consuming the principal.

Lack of patience: Eager for quick success, forcefully opening positions when the market is unclear, unable to withstand fluctuations.

Planning stagnation: Having a trading plan but not executing it, being greedy when making profits and holding losses, ultimately leading to liquidation.

Rolling positions is a gamble of high risk and high return; it is more like 'dancing on the edge of a knife'—behind successful cases are countless trials and errors and precise strategies.

Timing and extreme self-discipline. For ordinary people, it is by no means a 'shortcut to success', but rather could lead to amplified risks due to leverage.

Principal loss. If attempted, one must first establish a complete trading system, and remember: controlling desire is more important than chasing profits.#加密市场反弹 #以太坊ETF连续12周净流入 $ETH $BTC