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In cryptocurrency trading, why can some people achieve multiple times the returns during a bull market, while most are swept out by volatility? The difference often lies not in the eye for selecting coins, but in two words: position sizing.
The technique of rolling positions may seem simple—continuously adding to your position—but it secretly involves complex psychological tests and technical details. Many have heard of this concept, but due to a lack of thorough understanding, it ultimately turns into a tragic blind all-in gamble.
**Core Logic:: Principal as Anchor, Profit as Blade**
True rolling positions are not about reckless all-in; they use the unrealized gains from the initial position as ammunition for additional entries. For example, with a capital of 100,000, initially investing only 20,000( which accounts for 20% of the total funds). The benefit of this approach is: regardless of how the market reverses later, the remaining 80,000 principal stays calm, leaving room for a comeback.
When the coin price rises by 10%-20%, that unrealized profit of 20,000 becomes the capital for the second entry. Continue rising, continue adding. This method is akin to leveraging the market’s power to amplify gains, rather than risking your entire wealth.
**Three Iron Rules You Must Not Break**
First, trend judgment must be clear. Only act when the larger cycle is upward, market enthusiasm is high, and the big players are gearing up. Don’t try to roll positions during bottom rebounds or sideways consolidations, as that only leads to repeated losses.
Second, the courage to exit promptly is equally important. Once there are signs of trend weakening( such as stagnation at high levels or breaking below key moving averages), immediately retreat completely, locking in the profits already gained. Many people ruin themselves here—making a profit but reluctant to leave, ultimately giving it all back along with the principal.
Third, the rhythm in practical trading. When breaking previous highs, invest 20% of the initial position; when gains reach 20%, add with about 10% of unrealized profits; if it rises another 30%, continue to follow up. Phased, rhythmic position increases are more composed than a one-time lump sum.
**The Art of Taking Profits**
Greed is the most common trap in trading. How to deal with it? Use a trailing stop. Every time the price rises by 10%, move the stop-loss line up by 5%. This way, you can continue to enjoy the gains while being prepared to exit at any moment.
Gradual withdrawal is also a smart choice. At key resistance levels, sell part of your holdings to secure profits, while letting the remaining position follow the main upward wave. This approach prevents missing out on larger trends by exiting too early, and avoids total loss due to greed.
**Markets change in the blink of an eye, and opportunities are fleeting. True profit is not about luck, but about keen insight into trends and strict risk control. Master this methodology, and in the next cycle’s opportunities, you may achieve a shift from passivity to initiative.**