Recently I found something interesting, that is, the principle of Binance's own grid trading seems to be the same as the rolling position gameplay!
This refers to the principle of holding positions. If you understand these two ways of playing, careful people will find that there is a similar effect here.
The rolling position method has been mentioned in previous articles, but the same method is used in grid trading as in unilateral trading.
First, the grid will hold a large number of positions at the start point, and then conduct grid trading according to the grid ratio. However, the initial positions will not be closed during this trading process, and the source of its grid income is the subsequent floating profit increase process.
This is a very interesting thing, because many rolling positions in the market appear in the form of certain core tutorials, and some users are very interested in this and are willing to pay to learn this method.
In fact, the simplest and most intuitive way to learn is to use grid trading → unilateral trading. Its trading principle is the same, but it is completely sufficient to use the grid to implement rolling trading. If you don't want to get to the root of it, this is a good choice.
So is there any difference between grid trading and rolling trading?
In fact, there is. Although the profit process of grid trading is also through adding positions with floating profits, it still lacks some flexibility compared to manual operations, but the execution power of robots is slightly better than that of manual operations.
Manual rolling trading is more flexible than machine trading, but emotional issues may lead to some wrong operations.
Is there any difference in the gameplay?
There is definitely a difference. Many trading strategies are improved by many people. The strategy is nothing more than a perfect entry strategy and position ratio. It can't make you have explosive gains, but it will ensure that you won't lose too much.
Trading strategies sound mysterious, but in fact, they are a trading method that naturally arises after a long period of trading. Most traders seek stability after a long period of trading, and will study how to adjust their entry rhythm, position ratio, take profit and stop loss.
Basically everyone has their own trading system. Those who have been in the circle for at least 3-4 years and have not had their positions blown up have stable trading logic and methods. For newcomers who want to grow quickly, they should find some old people to communicate with and have more contact with. If you have 2-3 people who have been in the circle for more than 3 years and have not had their positions blown up, you can talk to them about their experiences. If you combine these for your own use, you will also form a complete trading strategy.
Do trading strategies really work?
The answer is yes. Through the above description, the strategy can be attributed to the habit of a long-term trader. If this habit is written down, it is a strategy. At least that person has used this trading logic in the cryptocurrency circle for more than 3 years without a margin call, which shows that his thinking is correct.
However, we cannot draw arbitrary conclusions based on the experience of one person. Maybe that person is lucky to have not been liquidated in three years. At this time, we need to find a second or third person to continue learning and communicating, so as to learn from each other's strengths and make up for each other's weaknesses. The strategies of some large institutions are basically discussed by 5-10 traders like this, and they can basically guarantee profits. Don't get me wrong here. I am not asking you to buy any strategy tutorials, but simply describing the process of generating strategies.
What should newcomers do?
What I want to say most here is to learn. From my personal experience, I entered the circle around 2017-2018. At that time, a big brother led me. At that time, he should have held millions of U. I went to live with him for a month. During this month, I studied trading and communicated every day. Even so, I still had several liquidations in my first year of trading.
He did teach me a lot. We spent a month together face to face. It would be a lie to say that I didn't learn anything. How could he still blow up my account even though he was playing with me like this?
Because I just got into the cryptocurrency world and heard the myth of getting rich overnight, my mentality was somewhat affected and I became a little greedy. This was my real state when I first got into the cryptocurrency world, and I believe that many newcomers are like this.
There is a joke that "a mature trader will have his positions closed countless times, and then make a desperate bet with only 2,000 yuan left."
After being liquidated countless times, your experience will naturally increase. However, even with experience, greed is inevitable. When you only have 2,000 left and find that it is not enough to pay the electricity bill for next month, you will understand that you cannot lose even 1 yuan. Therefore, you will start to make money when you combine years of trading experience, summarize and sublimate, and strictly implement. When you cannot accept or exist the risk of 1 yuan, that is when you start to make money.
Because the cryptocurrency world is like a gambling game, as the saying goes, the money on the gambling table is not money. If it doesn’t go into your pocket, it’s not yours. There is no concept of that. Newbies must first pass this level. The money on the table is also yours. It’s painful to lose 10 or 50 yuan. This is a good start.
In reality, most people who drive BMW or Audi would think the 10 yuan parking fee is too expensive, but van drivers are not ambiguous about the 20 yuan parking fee.
This is the concept of money. If you don't have a concept of it, then 1 or 2 50s won't feel like much, but in a few days you may lose dozens of 50s.
Even if you don't move, you still make money. Take -50 for example. If you don't trade today and don't have this -50, it's equivalent to making 50. If it's +50 today, then one positive and one negative is equivalent to making 100.
I say this to tell you, don't enter the market when there is no opportunity. Even if the profit today is 0, you have already outperformed 80% of investors. Don't disbelieve it. 8/2 quantitative, 80% of people lose money every day, so your profit today is 0 yuan, and the data shows that you have indeed defeated 80% of people.
That’s all for today, I’m #华人迪力 taking you to join hands with Wed3.0!
