Roll positions in trends, hold cash in oscillations
My friend was once a typical crypto market novice: she would eagerly close her position after making a little money, but stubbornly hold on when losing, sweating every time she looked at the charts.
Now, her account has skyrocketed from 13,000 U to 850,000 U. This is not some mysticism, but a set of 'rolling position strategies' that I personally taught.
Today, I will share the essence of this method with you in three plain words.
First knife: only gnaw on trend meat, do not lick on oscillating bones
My friend once thought that oscillating markets were low volatility and safe, always wanting to sneak in for a profit. I directly woke her up: "90% of oscillating markets are traps, with no direction and no volume; entering is just giving away money!"
True rolling positions are only suitable for that 10% of one-sided trending markets.
I taught her to recognize signals of a trend starting: breakouts after long sideways movements, buying the dip during a bull market, and breakouts on weekly charts. Last year, Bitcoin was sideways around 38000U, and on-chain data showed that whales were accumulating; this is a clear signal of a trend starting.
We decisively set up a long position at 38500U, and as the market started, her single position doubled.
Remember: Trends are the accelerator for rolling positions, while volatility is the knife for cutting losses. Those who truly make big money in cryptocurrency are not the ones trading every day but the patient hunters who wait for big trends and then strike.
Second rule: Use floating profits as ammunition, never fill loss positions.
My friend initially always wanted to 'go all in for a chance to turn a bike into a motorcycle.' I forced her to set a rule: the first position should only be 5% for testing the waters, and only consider adding if floating profits exceed 50%.
Once, after she opened a long position and encountered a pullback, she wanted to average down. I immediately held her hand: 'Averaging down on losses is for gamblers; rolling positions only rolls the winning snowball!' This is the core logic of rolling positions—adding to profitable positions, not risking your capital.
The essence of rolling positions lies in using profits to seek greater profits while protecting your capital. In specific operations, you can add to positions at convergence breakout points in trends or increase positions when trends pull back to moving average support levels.
Third rule: Take profits like pulling threads, don't cut all at once.
I once had a friend who was a 'can't hold' person; she wanted to close everything after making 10%, calling it 'locking in profits.' I taught her the 'three-step profit-taking method,' which completely changed her mindset:
Take out the principal first when floating profits reach 30%, ensure the safety of your capital, and lock in the base.
Keep 40% of your position to let profits run, set a trailing stop to ensure you don't lose your capital;
Finally, take 30% to bet on the tail end of the trend; don't get off the bus easily.
In one wave of the market, I had her keep 30% of her position, and later she rode a big bullish candle! She finally realized: not closing everything isn't greed; it's giving profits room to breathe.
True risk control is not about running away after making a little profit; it's about locking in profits through trailing stops.
The essence of rolling positions is discipline, not prediction.
From my friend, I saw the real transformation of a trader: no longer predicting the market but following the rules.
The cruel truth of the cryptocurrency world is that 80% of people are desperately trading, yet they lose to the 20% who understand 'waiting' and 'collecting.' Wealth is designed, not stumbled upon.
The market constantly cycles between volatility and trends. The next time you face the market, ask yourself: Is it volatility or a trend right now? Does my position management adhere to the principles of rolling positions? Am I using floating profits to add positions, or am I gambling with my capital?
If you can answer these three questions well, you are already on the path to becoming a mature trader.
If you are repeatedly washed out by the market, selling leads to losses and taking positions leads to being trapped, you might want to pay attention to my upcoming updates. I will share more practical tips in cryptocurrency trading to help you avoid detours.
Remember, stable profits are not based on mysticism but on systems and discipline. By mastering these 'three rules,' you can also evolve from being a retail investor to a true market hunter.
These are some of my personal experiences and views. Feel free to discuss. Follow Xiang Ge to understand more first-hand information and precise points in the cryptocurrency world, becoming your guide in trading, as learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
