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In the highly fluctuating Crypto Assets market, why do some people frequently trade yet incur losses repeatedly, while others can steadily achieve asset appreciation? The key lies in their mastery of a core principle: trend trading and increasing the position with profits rather than principal.
Many investors have misconceptions about 'rolling positions', equating it with simple 'increasing the position'. They significantly increase their positions after small profits, and once the market adjusts, not only do their profits vanish, but they may even incur losses on their principal.
The strategy used by true rolling position masters is: first test the waters with a small position, and only gradually increase the position based on profits. This way, even if there are losses, what is lost is only the profits given by the market, rather than one's own capital.
For example, suppose you have 5000 USDT in funds. You can first open a position with 1000 USDT, and if it rises by 20%, you will make a profit of 200 USDT, which you can then use for the next trade. If the market continues to improve, you can keep increasing the position; if the trend reverses, you should promptly take profits and exit. Each round of increasing the position follows the principle of going with the trend and never against it.
Many investors experience liquidation during the 'rolling position' process due to: continuing to increase the position while being stuck, or making emotional trades during significant market fluctuations. This operating model is actually taking risks, rather than being a true rolling position strategy.
The market environment suitable for implementing a rolling warehouse strategy should possess the following characteristics:
1. A clear upward trend, rather than a single-day surge.
2. Strong market sentiment is best accompanied by hot topics and FOMO mentality.
3. The structure of the trading target is clear, easy to pump, and has relatively low selling pressure.
The practical operation suggestions are as follows:
Step 1: Lightly test the waters when breaking through key positions.
Step 2: When the price increases by 15-20%, use the profits obtained to continue to increase the position.
Step 3: If the trend continues, increase the position again.
If there is a fluctuation or it breaks the support level, decisively take profits and exit the market.
About profit-taking strategies:
You can use a trailing stop loss to continuously raise the stop loss line as the price rises, in order to protect the profits that have been obtained.
Another method is to gradually reduce the position in batches, selling off at key price levels, avoiding complete reliance on intuition to close the position all at once.
Remember: the principal is like the roots of a tree, the profit is like the nutrients, and the trend is like the direction of the wind.
The investors who can truly achieve asset multiplication in the crypto market are not those who trade frequently, but those who can accurately grasp the market rhythm, proceed steadily, and have the courage to let profits continue to grow.
The essence of a bull market is not about how many trades you have completed, but whether you can seize that crucial tailwind opportunity.
Do not let emotions control you any longer; the wealth of the market will ultimately belong to those investors who understand 'to go with the flow'.