Rolling positions, also known as rolling operations, is a speculative method in the stock and cryptocurrency markets, adopted by investors during market downturns, using cash or short selling to prevent declines, and timely re-establishing positions to seek more investment opportunities or reduce risks.
What does rolling positions mean?
Characteristics and advantages of rolling positions.
Rolling positions is an investment strategy in the stock market characterized by effectively responding to significant stock price declines. Investors can prevent further stock price drops through measures such as going to cash or short selling.
During rolling positions, investors need to fully grasp investment opportunities, understand market conditions and investment principles, to make correct decisions. At the same time, risk prevention is crucial; it is necessary to be familiar with price fluctuation trends to reduce investment risks.
The advantage of rolling positions is that investors can buy during downturns to seize more investment opportunities, effectively avoiding the risks brought by market fluctuations. Additionally, rolling techniques can help investors prevent further declines in stock prices and reduce investment risks.
What are the techniques for rolling positions?
The key to increasing positions in floating profit lies in the position of adding positions when not in a profit state, which needs to be combined with market fluctuations; floating profit is only one of the conditions for increasing positions.
Bottom position + T trading rolling operation means dividing funds into three to four parts, keeping the bottom position unchanged, and using the remaining positions for high selling and low buying. Specifically, there are half positions, 30% bottom positions, and 70% bottom positions for rolling T trading, suitable for different market conditions.
Buying rolling positions refers to investors buying when the price is below the expected lowest price to gain short-term profits; selling rolling positions means selling when the price is above the expected highest price to gain short-term profits.
Rolling positions
The specific steps for rolling positions are as follows:
Fund allocation → Divide funds into three to four parts.
Keep bottom positions → Reserve a portion of funds as bottom positions, keeping them unchanged.
Market assessment → Analyze market conditions to determine the timing for high selling and low buying.
High selling and low buying:
Buy → Buy with remaining funds when the price is lower than expected (buying rolling positions).
Sell → Sell part of the holdings when the price is higher than expected (selling rolling positions).
Cyclic operation → Continuously repeat the steps of high selling and low buying based on market fluctuations.
Adjust strategy → Adjust the size of bottom positions and the frequency of rolling operations as the market changes.
Take profit and stop loss → Close positions promptly when preset profit or loss targets are reached.
