How to roll assets:
In the crypto world, you need to find a way to first earn 1,000,000 in principal. There is only one way to grow from tens of thousands to 1,000,000.
That is rolling assets.
When you have 1,000,000 in capital, you will find that your whole life seems different. Even if you don’t use leverage, just holding spot assets will appreciate.
20% would yield 200,000; 200,000 is already the income ceiling for the majority of people in a year.
Moreover, when you can grow from tens of thousands to 1,000,000, you will have grasped some ideas and logic for making big money, and your mentality will have calmed a lot; afterward, it’s just about copying and pasting.
Do not always think about millions or billions. Start from your actual situation; bragging will only make you feel better. Trading requires the ability to recognize the size of opportunities; you cannot always trade with a small position, nor can you always trade with a heavy position. Usually, play with a small position and when a big opportunity arises, then bring out the big guns.
For instance, rolling assets should only be done when big opportunities arise; you cannot keep rolling. Missing an opportunity is fine, because you only need to successfully roll a few times in your life to go from 0 to tens of millions; tens of millions is enough for an ordinary person to upgrade.
The ranks of wealthy people.
A few points to note when rolling assets:
1. Enough patience. The profits from rolling assets are huge; as long as you can successfully roll a few times, you can earn at least tens of millions or even hundreds of millions.
You cannot easily roll; you need to find high certainty opportunities.
2. High certainty opportunities refer to a sharp decline followed by sideways consolidation and then an upward breakout; the probability of following the trend at this time is very high.
Find the right trend reversal point and get on board from the start.
3. Only roll long;
▼ Rolling assets risk
Let’s talk about rolling asset strategies. Many people think this is risky, but I can tell you that the risk is very low, far lower than the logic of trading futures.
If you only have 50,000, how to start with that amount? First, this 50,000 should be your profit. If you are still in the red, don’t look any further.
If you open a position at 10,000 in Bitcoin with a leverage of 10 times, using a fractional position model, only opening 10% of your position means only using 5,000 as margin. This is equivalent to 1x leverage with a 2% stop loss. If you hit the stop loss, you only lose 2%, which is only 1,000. How do those who face liquidation even end up losing everything? Even if you face liquidation, isn’t it only a loss of 5,000? How can you lose it all?
If you are correct, and Bitcoin rises to 11,000, you continue to open 10% of your total funds, similarly setting a 2% stop loss. If you hit the stop loss, you still earn 8%. What about the risk? Isn’t the risk very high? And so on...
If Bitcoin rises to 15,000 and you have successfully increased your holdings, during this 50% market surge, you should be able to earn around 200,000. Capturing two such market surges means around 1,000,000.
There is no such thing as compound interest; 100 times is achieved through two 10 times, three 5 times, or four 3 times gains, not through compounding 10% or 20% every day or month; that’s nonsense.
This content not only has operational logic but also contains the core internal principles of trading, position management. As long as you understand position management, you cannot lose everything.
This is just an example, the general idea is like this, the specific details need to be pondered more by yourself.
The concept of rolling assets itself has no risk; not only does it not have risk, but it is also one of the most correct ideas in futures trading. The risk lies in leverage. You can roll with 10 times leverage or even 1 times leverage, and I usually use two to three times. Capturing two such opportunities can yield tens of times in returns, right? If worse comes to worst, you can use 0.x times leverage. What does this have to do with rolling assets? This is clearly a problem with your own choice of leverage; I have never said to use high leverage for trading.
Moreover, I have always emphasized that in the crypto world, you should only invest one-fifth of your money, and only one-tenth of your cash into futures. At this point, the funds in futures only account for 2% of your total funds. Futures should only use two or three times leverage, and only trade Bitcoin. This can be said to reduce the risk to an extremely low level.
If you lost 20,000 out of 1,000,000, would it hurt?
If you keep using leverage, it becomes meaningless. People always say that rolling assets is risky, and that making money is just good luck. Saying these things isn’t to convince you; convincing others is pointless. I just hope that people with the same trading philosophy can play together.
It’s just that there is currently no screening mechanism, and there will always be harsh voices that interfere with the recognition of those who want to watch.
▼ Capital management
Trading is not full of risks; risks can be mitigated through capital management. For example, I have 200,000 in my futures account and between 300,000 to over 1,000,000 in my spot account. When there are big opportunities, I will invest more; when there are no opportunities, I will invest less.
With good luck, one can earn over 10 million RMB in a year, which is more than enough. With bad luck, the worst-case scenario is a futures account liquidation, but it doesn’t matter, as spot profits can cover futures losses. If you cover it, you can dive back in; is it really impossible to earn even a penny in spot trading for a year? I’m not that incompetent.
You may not make money, but you cannot afford to lose money. So I have not faced liquidation for a long time, and I often withdraw a quarter or a fifth of my profits to keep separately. If I face liquidation, I will still retain some profits.
As an ordinary person, my personal suggestion is to use one-tenth of your spot position to trade futures; for example, if you have 300,000, then use 30,000 to trade. If you face exposure, use the profits from spot trading to cover it. After experiencing liquidation ten or eight times, you will surely grasp some inner insights. If you still can’t grasp it, then don’t trade; it’s not suitable for you.
▼ How to make a small investment grow big
Many people have misconceptions about trading, such as believing that small capital should trade short-term to grow funds. This is a complete misconception; this way of thinking is simply trying to exchange time for space, hoping to get rich overnight. Small capital should actually focus on medium to long-term investments to grow.
Is one sheet of paper thin enough? A sheet of paper folded 27 times is 13 kilometers thick. If you fold it 10 more times to 37 folds, it would be thicker than the Earth. If you fold it 105 times, the entire universe would not be able to contain it.
If you have 30,000 in capital, you should be thinking about how to triple it in one wave, and then triple it again in the next wave... this way, you will have around 400,000 to 500,000. Instead of thinking about earning 10% today and 20% tomorrow... this will eventually lead you to ruin.
Always remember, the smaller the capital, the more you should focus on long-term investments, relying on compounding to grow; do not trade short-term to earn small profits.
