Once you have a capital of 1 million, you will find that life goals have become much clearer. Even without using leverage, a 20% increase in spot prices can earn you 200,000, which is already the income limit for most people in a year. Moreover, when you can grow from tens of thousands to 1 million, you have grasped some thoughts and logic for making big money, and your mindset will become more stable. Next, it's about continuously replicating these successful experiences.
Don't always think about goals of tens of millions or even hundreds of millions; start from your actual situation. Bragging will only make you uncomfortable. The core of trading is recognizing the size of opportunities; you cannot always have light positions nor heavy positions. Usually, you can play with small positions, and when the real big opportunity comes, then go all in.
Rolling strategy
Rolling positions is an operational method that utilizes leverage for significant profits in trending markets, achieving compound effects by increasing positions. Specifically, after gaining floating profits, you increase your position at the right time to further amplify your returns. However, it's important to note that this operation should not be frequent; failure is normal, as you only need to succeed four times in your lifetime to go from zero to tens of millions, which is enough for an ordinary person to upgrade to a wealthy status.
Situations suitable for rolling positions:
1. Choosing a direction after a long period of horizontal consolidation at new lows in volatility: When the market has been in horizontal consolidation for a long time and volatility has dropped to new lows, it often indicates that a new trend direction is about to emerge.
2. Bottom fishing after a major drop following a big rally in a bull market: In a bull market, if a significant price increase is followed by a pullback, you can consider bottom fishing if you determine that the market is still in an upward trend.
3. Breakthrough of significant resistance/support levels on the weekly chart: When the price breaks through important resistance or support levels on the weekly chart, it usually indicates the formation of a new trend, at which point you can consider increasing your position.
Overall, rolling positions have a higher success rate only in the above scenarios; other opportunities should be abandoned.
Specific methods for rolling positions
Floating profit position increase
After gaining floating profits, you can consider gradually increasing your position, but the premise is to ensure that the holding cost has been reduced to minimize potential risks. It's not about blindly increasing your position just because you're in profit; it should be done at the right time. For example:
- When your position has significant profits and the market trend remains strong, you can consider gradually increasing your position.
- When increasing positions, control the proportion of each increase to avoid investing too much at once.
Base position + T trading rolling operation
Divide funds into multiple parts, keeping a portion of the base position unchanged, while the other portion conducts high selling and low buying operations. The specific ratio can be chosen based on personal risk preferences and fund sizes. For example:
- Half-position rolling for T trading: Half of the funds as the base position, and the other half for high selling and low buying.
- 30% base position rolling for T trading: 30% of funds as the base position, 70% for high selling and low buying.
- 70% base position rolling for T trading: 70% of funds as the base position, 30% for high selling and low buying.
This method can help you respond flexibly to market fluctuations while maintaining a certain position, maximizing profits and controlling risks.
Summary
The key to rolling positions is identifying suitable opportunities and increasing your position at the right time. You should remain cautious, experiment with small positions, and go all in when a significant opportunity arises. This not only improves the success rate but also effectively controls risk. Remember, trading is not just about technique and strategy; more importantly, it's about mindset and discipline. I hope this information helps you, and I wish you greater success in trading!