Everyone! Don't let 'rolling positions' trap you again! Today, let's expose its true nature. After reading this, you might save a few months' salary, quickly share it with friends who are still messing around in the crypto world!
First, understand: what exactly is 'rolling positions'?
To put it bluntly, it's 'losing money but refusing to give up, stubbornly throwing in more money', radiating a gambler's madness throughout. Let's break down a real case, and after reading it, you'll definitely feel a chill down your spine:
Step one: Borrow money and go all in, full of confidence.
You hold $1,000 in capital, thinking 'small bets are boring', and you directly open 10x leverage — putting in $1,000 of your own and borrowing $9,000 from the exchange to buy $10,000 worth of Bitcoin. At that moment, you are still feeling good, thinking, 'If it rises 10%, it doubles, guaranteed profit!'
Step two: Prices plummet, capital is halved.
Just after buying, negative news suddenly explodes! Bitcoin drops 5% instantly, and your $10,000 position loses $500 in a flash. Your initial $1,000 capital is now only $500 — you’re about to be forcibly liquidated by the exchange, losing everything!
Step three: In a panic, you add more money and get deeper into trouble.
At this point, how can you accept it? All you can think is, 'If it drops further, I'll add more money, and when it rebounds, I can break even.' You quickly add $2,000 to your margin, thinking, 'This time I can definitely hold on.'
Step four: Either face liquidation and lose everything, or barely break even (with a very low probability).
But is there really a bottom line in the crypto market? As prices continue to fall, you can only keep pouring money in. In the end, you either run out of money and lose your entire capital while still owing the exchange (margin call warning⚠️); or you get lucky with a rebound, just barely recouping your losses, but the odds are lower than winning the lottery!
Why do people say 'rolling positions' is like giving away money? Here are three traps to avoid!
It's like being addicted to gambling; the more you lose, the more you want to turn it around.
Once you start adding money, it's like falling into a gambling trap, always thinking 'I'll win it back next round'. In the end, you lose more and more, potentially losing several months' salary in just a few days, or even depleting all your savings!
The volatility in the cryptocurrency market is too great to bear.
There are no price limits in the cryptocurrency market; any policy or news can cause prices to plummet by 20%. Your margin is nowhere near enough to hold on, and putting in more money is just a waste!
99% of people end up with 'losing everything'.
Don't be fooled by online stories of 'turning the tables'! In reality, 99% of people who play with rolling positions go from 'wanting to recoup losses' to 'losing all their capital', ultimately not only failing to make money but potentially ending up in debt, with no chance to regret!
Lastly, let me speak the truth:
If you're losing, cut your losses quickly! Don’t imitate the 'turning the tables' in dramas; the crypto market is not a casino. There are not that many 'miraculous comebacks'. Timely loss-cutting is the key to preserving your capital!
If you find this useful, please follow for more tips on avoiding pitfalls in the crypto world. I'll help you steer clear of those traps that can make you 'poor overnight', and together we can lay a solid foundation in crypto!
