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Many people lose everything in a contract in one go and often blame bad luck. But the real issue lies in a fundamental misunderstanding of the concept of "rolling positions."
First, let's talk about how most people do it—buy more when the price drops, thinking they can lower their average cost, but instead they get deeper and deeper into the trap. When a deep correction comes, they get liquidated directly. This is not rolling positions; it's gambling on a rebound with their principal, playing with fire and courting self-destruction.
So, what is true rolling? Let profits take risks while keeping the principal always safe. It may sound unfamiliar, but the operation method isn't complicated.
Suppose you have 8,000U to short a certain coin, what should you do?
**Start with a very small position to test**
Use about 5% of your funds, say 400U, to open a small short position with a stop-loss set. The sole purpose of this trade is to verify whether your judgment is correct; making money is a secondary benefit. If you're wrong, you only lose a small amount.
**Consider adding to the position after floating profits**
If the first trade earns 50%, with a floating profit of 200U, you can consider adding to the position. But the money for adding must come from this floating profit—use this 200U to open a second short position. Even if the second trade loses, you only lose the profit, and the 8,000U principal remains intact.
**When the trend emerges, take profits in stages**
When the market develops as expected, and the floating profit approaches or even exceeds the initial principal, it's time to take profits in stages. Alternatively, move the hedge stop-loss up to the cost price to at least ensure that this wave won't lose the principal. The remaining positions can continue to ride the trend's tail.
The core logic of this method is one sentence: use profits to snowball, not push the principal off a cliff.
It also has a hidden benefit—forcing you to shift from "proving yourself right" to "letting the market prove itself." This mental shift can greatly extend your survival time.
Are you still holding positions and frequently getting liquidated? Maybe it's time to find a reliable person to discuss these details thoroughly. After all, you can't make money outside your knowledge scope, but by solidifying your fundamentals, the market will be a different game when it comes.