It's been a while since my last update, and many coin friends have privately messaged me asking how to trade with small funds to grow big. I believe many of you started with small funds; no one starts with a large amount of money or all their savings to trade coins.

Next, I will talk about this knowledge point — rolling positions.

How to roll positions:

In the crypto space, you must find a way to first earn 1,000,000 capital. There is only one way to earn 1,000,000 capital from tens of thousands.

That is rolling positions.

Once you have 1,000,000 capital, you will find that your whole life seems different, even if you don't use leverage; just holding spot trading will increase.

20% would give you 200,000. 200,000 is already the ceiling of annual income for most people.

Moreover, when you can grow from tens of thousands to 100,000, you will grasp some ideas and logic for making big money. At this point, your mentality will also become much calmer, and from then on, it's just copying and pasting.

Don't always talk about tens of millions or hundreds of millions; start from your actual situation. Boasting only makes the bull comfortable. Trading requires the ability to recognize the size of opportunities; you can't always keep a light position nor always hold a heavy position. Usually, play with a small position, and when a big opportunity comes, then pull out the heavy artillery.

For example, rolling positions can only be operated when a big opportunity arises. You cannot keep rolling; it's okay to miss it because you only need to roll successfully three or four times in your life to go from zero to tens of millions. Tens of millions are enough for an ordinary person to upgrade.

You've entered the ranks of the wealthy.

Points to note about rolling positions:

1. Sufficient patience. The profits from rolling positions are huge; as long as you can roll successfully a few times, you can earn at least tens of millions or even billions.

You cannot roll easily; you need to find high certainty opportunities.

2. A high certainty opportunity refers to a horizontal consolidation after a sharp drop, followed by a breakout. The probability of following the trend at this time is very high.

Identify the points of trend reversal and get on board right from the start.

3. Only roll long positions;

▼ Rolling Position Risk

Let's talk about the rolling position strategy. Many people think it is risky, but I can tell you the risk is very low, far lower than the logic of opening positions in futures.

If you only have 50,000, how to start with 50,000? First, this 50,000 must be your profit. If you are still losing, then don’t look further.

If you open a position in Bitcoin at 10,000, set the leverage to 10 times, and use a gradual position mode, only opening 10% of the position, that is, only opening 5,000 as margin. This is actually equivalent to 1x leverage with a 2% stop-loss. If you hit the stop-loss, you only lose 2%, which is just 1,000. How do those who get liquidated get liquidated? Even if you get liquidated, fine, you only lose 5,000, right? How can you lose it all?

If you are correct and Bitcoin rises to 11,000, you continue to open 10% of your total capital, and set a 2% stop-loss. If you hit the stop-loss, you still earn 8%. Where's the risk? Isn't the risk very high? And so on...

If Bitcoin rises to 15,000, and you add positions smoothly, in this 50% market trend, you should be able to earn around 200,000. Grabbing two such market trends will yield around 1,000,000.

There is fundamentally no compound interest; 100 times is achieved through 2 times 10 times, 3 times 5 times, and 4 times 3 times, not through daily or monthly 10% or 20% compound interest; that's nonsense.

This content not only includes operational logic but also contains the core essence of trading and position management. As long as you understand position management, you cannot go completely bankrupt.

This is just an example; the general idea is like this. The specific details still need to be thought through by yourself.

The concept of rolling positions itself carries no risk. Not only does it not have risk, but it is also one of the most correct approaches to trading futures. The risk lies in leverage. You can roll with 10x leverage or even 1x; I generally use two to three times. Catching two opportunities can yield dozens of times the return. Even if you use 0.X leverage, what does that have to do with rolling positions? This is clearly your own choice of leverage; I have never said to operate with high leverage.

Moreover, I always emphasize that in the crypto space, only invest one-fifth of your money, and only use one-tenth of your spot funds to trade futures. At this time, the funds for futures only account for 2% of your total capital, and use only two to three times leverage, and only trade Bitcoin. You can say the risk has been reduced to an extremely low level.

Would you feel pain if 100,000 became 20,000?

Always leveraging is boring. There are always people saying rolling positions are risky, that making money is just good luck. Saying these things is not to convince you; convincing others is pointless. I just hope that people with similar trading philosophies can play together.

Currently, there is no filtering mechanism, and there are always harsh voices that interfere with the recognition of those who want to watch.

▼ Capital Management

Trading is not filled with risks; risks can be resolved through capital management. For example, I have a futures account with 200,000 dollars, and a spot account ranging from 300,000 to over 100,000 dollars randomly. When opportunities are abundant, invest more; when there are no opportunities, invest less.

With good luck, you can earn over 10 million RMB in a year, which is already quite sufficient. With bad luck, the worst-case scenario is that your futures account is wiped out, but it doesn't matter; the profits from spot trading can make up for the losses from futures liquidation. After compensating, you can dive back in. Isn't it possible to earn at least a penny in spot trading in a year? I'm not that bad.

You may not make money, but you cannot lose money, so I haven’t been liquidated for a long time. In futures, I often save one-fourth to one-fifth of my profits separately. Even if I get liquidated, I will still retain part of the profits.

As an ordinary person, my personal advice is to use one-tenth of your spot position to trade futures. For example, if you have 300,000, use 30,000 to play. If you have exposure, invest the profits from spot trading. After experiencing ten or eight liquidations, you will eventually grasp some insights. If you still haven't figured it out, then don't play; this line isn't suitable for you.

▼ How Small Funds Can Grow

Many people have misconceptions about trading, such as thinking that small funds should engage in short-term trading to grow their capital. This is a complete misconception; this kind of thinking is trying to exchange time for space, attempting to get rich overnight. Small funds should actually engage in medium to long-term trading to grow.

Is one piece of paper thin enough? A piece of paper folded 27 times is 13 kilometers thick. If folded 10 more times, reaching 37 times, it would be thicker than the Earth. If folded 105 times, the entire universe wouldn't be able to contain it.

If you have 30,000 capital, you should think about how to triple it in one go and then triple it again in the next wave... then you will have four to five hundred thousand. Instead of thinking about making 10% today and 20% tomorrow... this will eventually lead to your downfall.

Always remember, the smaller the funds, the more you should focus on long-term investing. Rely on doubling through compound interest to grow big. Don't engage in short-term trading for small profits. That's all for today's article. If you’ve read this, please give me a follow for more knowledge updates in the future. This article is just my personal insights. Anything related to money is deceptive; fellow coin friends, protect your wallets. Meeting adjourned.