Don't just focus on this big goal right from the start; you need to first find a way to earn enough money as a starting point for compounding. With this money, even if you just buy some spot assets and get a 20% return, it's much better than an ordinary person working hard for a year.
After years of struggling in the cryptocurrency world, surviving and making money is not about earning small amounts daily, but rather relying on a few key big gains, using the rolling position method to maximize compound interest. Usually, I practice with small positions, and only increase my investment when there is a clear profit signal, and I only go long, never short.
So what kind of signals are worth taking action on?
The first type is when the price plummets, followed by a long period of consolidation, and suddenly one day, it breaks out with increased volume; at this point, the likelihood of a trend reversal is very high.
The second type is when the price stands above the key moving averages on the daily chart, and both volume and price rise together, indicating that market sentiment has clearly improved.
The third type is when there is no action in the hot search of the crypto circle, and retail investors are still complaining and cursing, while the main forces may have already quietly built their positions.
How should you operate specifically? Suppose you have 50,000 in capital:
It’s best if this 50,000 is profit you've already earned; first set a stop-loss to protect your capital, and then consider rolling over your positions.
Use a single position mode, and don't exceed 10% of your total position. The leverage should not exceed 10 times; calculated this way, the actual leverage is around 1 time, and setting the stop-loss at 2% is relatively safe.
After the price breaks through, wait for the first increase to be 10% before adding to your position, then use 10% of the new profit to open the position, keeping the stop-loss at 2%.
Throughout the process, make sure not to go all in at once, don’t average down, and certainly don’t hold on to losing positions. If it hits the stop-loss point, decisively cut your losses, shut down and walk away, preserving your capital for the next opportunity.
If you can catch a wave of 50% upward momentum, compounding from 50,000 can turn into 200,000. Catching two rounds of such market conditions will get you to 1 million. In fact, if you can seize such opportunities 3 or 4 times in a lifetime, rolling from 50,000 to 1 million, and then to 10 million, you can consider retiring.
Finally, remember a few key points for risk control:
First, do not roll over positions in choppy markets, downtrending markets, or on coins that rely on news speculation.
Second, even if you lose all your capital, you only lose the margin for the single position; other funds will automatically be locked, and liquidation won't affect your total account.
Third, during the position rolling period, remember to withdraw 30% of the profits; buying a house or a car is fine, don’t let greed harm yourself.
Ultimately, rolling positions is not about gambling your life, but about waiting for opportunities. Seize the opportunity when it arises, and if there isn't one, wait; it's better to miss out than to operate recklessly.
When you really earn your first million, you'll naturally understand how to control your position, manage your emotions, and grasp the cycles. The path ahead is actually just about copying and pasting the successful experiences.
After being in the crypto circle for a long time, I've seen too many people operate blindly without guidance or mess things up and lose badly. If this is your current situation, scan the code below to enter the chat room, where there are real-time strategies and valuable information every day to help you avoid detours.
