But true top players achieve exponential asset growth through 'rolling positions'
What is rolling positions?
Rolling positions means letting profits run, rather than rushing to secure them.
Ordinary players: Run after earning 10%, then miss out on major trends.
Rolling players: Increase positions with floating profits, letting the trend work for you.
The core logic of rolling positions
Trend is king: Only roll positions in a bull market or strong trend; not suitable for choppy markets.
Increase positions with floating profits: Use profits to seek greater profits, not risking capital.
Move stop-loss up: Gradually raise stop-loss levels as profits grow to lock in gains.
Incorrect rolling positions = gambling, Correct rolling positions = compound interest machine.
Practical skills for rolling positions
(1) Confirm the trend before taking action
(2) Pyramid position increase method
Initial position: 20%-30% of capital for trial
Trend Continuation: Increase positions in batches using profits
Final position not exceeding 50% of total capital
(3) Dynamic profit-taking, let profits soar
Break below the 10-day moving average? Reduce position by 50%
Break below the 20-day moving average? Liquidate position
Volume surge but no price increase? Take profits in batches
Remember: You won't go bankrupt from taking profits, but you will go to zero from greed.
4. The deadly trap of rolling positions
Counter-trend rolling: Averaging down in a downtrend leads to greater losses (typical: contract holding)
Excessive leverage: Rolling positions ≠ all-in, high leverage accelerates liquidation
Emotional trading: Full position when FOMO, cutting losses in panic
5. The highest realm of rolling positions: Letting things happen naturally
After establishing a position, look at the market less and trade less
Let the market move on its own, you only need to follow the trend
80% of profits come from 20% of the time; endure loneliness to maintain prosperity
I am Xiao O, a professional analyst and instructor, a mentor and friend on your investment journey! As an analyst, my primary goal is to help everyone make money. I resolve confusion and entrapments, speaking with strength. When you lose direction and don't know what to do, follow Xiao O to find your way.
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