Perhaps in the eyes of some, retail investors are always the lambs waiting to be slaughtered!
The cryptocurrency world is a place where survival of the fittest applies. The barrier to entry is low; everyone can enter the crypto market, but not everyone can make money in it. It requires long-term accumulation and continuous learning.
Many people come to the crypto market with dreams of getting rich overnight. Of course, some have succeeded, but in most cases, it can only be achieved through 'rolling positions'. Although rolling positions is theoretically feasible, it is by no means an easy path.
Rolling positions is a strategy that should only be used when great opportunities arise, without the need for frequent operations.
1. Judging the timing for rolling positions.
Rolling positions cannot just be done whenever one wishes; it requires certain background and conditions to have a higher chance of success.
2. Position management.
Reasonable position management includes three key steps: determining the initial position, setting up rules for increasing positions, and developing a strategy for reducing positions.
3. Adjusting holdings.
1. Choosing the right timing: Entering the market when conditions for rolling positions are met.
2. Opening positions: Opening positions based on technical analysis signals and selecting appropriate entry points.
3. Increasing positions: Gradually increasing positions as the market continues to develop in a favorable direction.
4. Reducing positions: Gradually reducing positions when reaching predetermined profit targets or when the market shows reversal signals.
5. Closing positions: Fully closing positions when reaching profit targets or when clear reversal signals appear in the market.
4. Risk management.
Risk management mainly consists of two parts: controlling total position size and allocating funds. It is essential to ensure that the overall position does not exceed a bearable risk level. When allocating funds, it should be reasonable; do not invest all funds in a single operation. Additionally, real-time monitoring is necessary, closely watching market dynamics and changes in technical indicators, and flexibly adjusting according to market changes, including timely stop-loss or position adjustments when necessary.
So how should small funds grow larger?
Here we must mention the effect of compound interest. Imagine if you have a coin, and its value doubles every day. After a month, its value will become astonishingly high. The first day it doubles, the second day it doubles again, and so on, leading to astronomical figures in the end. This is the power of compound interest. Even starting with a small amount, after a long period of continuous doubling, it can grow to tens of millions.
Currently, for friends looking to enter the market with small funds, I recommend focusing on big goals. Many people think that small funds should frequently engage in short-term trading to achieve rapid appreciation, but in fact, it is more suitable to engage in medium to long-term trading. Instead of aiming for small daily profits, one should focus on achieving several times the growth with each trade, aiming for exponential growth.
In terms of positions, first understand the need to diversify risk; do not concentrate all funds on a single trade. You can divide your funds into three to four parts, using only one part for each trade. Moreover, dynamically adjust: if you incur losses, supplement with equivalent funds from outside; if you make a profit, withdraw some appropriately. The key is to avoid losses. Finally, increase your positions, but only under the condition that you are already profitable. As your funds grow to a certain extent, you can gradually increase the amount for each trade, but do not add too much at once; transition slowly.


I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most fundamental thing is to help everyone make money. I will help you solve confusion and stuck positions, letting my strength speak for itself. When you lose your way and don’t know what to do, follow Xiao O; I will point you in the right direction.#机构疯抢以太坊