In the field of leveraged trading such as cryptocurrency, 'rolling positions' is often viewed as an aggressive strategy for small capital to seek high returns. There have been numerous cases in the crypto space where individuals achieved wealth leaps through this method: In 2021, the trader Tony turned an initial capital of 50,000 yuan into a profit of 20 million yuan within a year by using high leverage and rolling positions; during times of extreme market volatility, Liang Xi also shorted with 10,000 yuan and made millions through rolling positions. These cases have made 'rolling positions' a hot topic of discussion, but its essence and risks are far more worthy of in-depth exploration than the stories themselves.
What is rolling positions?
In simple terms, rolling positions is a trading method of 'small bets for big returns, compounded leverage':
Using a small amount of capital to try multiple times, leveraging high leverage (such as 100 times) to amplify returns, and capturing a wave of trending market movements to achieve a doubling effect.
The core logic is: invest a small proportion of capital in a single trade, withdraw part of the profits after making gains, and continue to increase the remaining capital, repeatedly operating to expand returns while controlling risks through strict stop-loss measures.
Practical logic of rolling positions (taking 300 dollars as an example)
1. Small trades for trial and error: Each time use 10 dollars to open a position with 100 times leverage, a 1% market fluctuation can double the capital (earn 10 dollars) or wipe it out (lose 10 dollars).
2. Firm direction: Judging the direction of price movements in advance, reflecting on whether the direction is wrong during continuous losses, and stopping in time.
3. Compounding returns: After the first profit, withdraw 10 dollars in profit, use the remaining 20 dollars to continue opening positions, if profitable again it becomes 40 dollars, and so on.
4. Locking in profits: Set clear targets (e.g., earning 5,000 dollars or 10,000 dollars), and exit immediately upon reaching the target to avoid losing profits due to greed.
The core premise of rolling positions
Accurate judgment: A clear understanding of market trends is necessary to capture one-sided market movements (e.g., a fluctuation of about 10% in Bitcoin over a month).
Strict self-discipline: Control trading frequency and avoid frequently opening positions; adhere to take-profit and stop-loss rules to eliminate emotional trading.
Patience to wait: Major market movements are not common and may require months or even years of waiting, avoiding blind operations in a volatile market.
Why do most people blow up their accounts when trading contracts?
Inability to resist: Ignoring trends and frequently trading, with fees and slippage constantly consuming capital.
Lack of patience: Eager to achieve results, forcing trades when the market is unclear, unable to bear volatility.
Plans sitting idle: Having a trading plan but not executing it, being greedy when making profits and holding onto losing trades, ultimately leading to account blow-ups.
Rolling positions is a high-risk, high-reward gamble; it is more like 'dancing on the knife's edge'—behind successful cases are countless trials and errors, precise timing, and extreme self-discipline. For ordinary people, it is by no means a 'shortcut to success,' but rather may lead to capital depletion due to amplified risks by leverage. If attempting this, one must first establish a sound trading system and remember: controlling desire is more important than chasing profits.


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