Why do you keep losing more and more in contracts, while some people have increased their profits by dozens of times in a year using a trap method?
It's not that they are lucky, but that they have mastered an iron rule: going with the trend + compound interest. We often say "roll over the position," but most people misunderstand it. They think rolling over the position means to increase their investment as they earn more, but a wave of correction wipes out their profits and their capital also gets destroyed. Real masters of rolling positions rely on "only using profits to increase positions, not touching the principal." Distinguish clearly: what is called "rolling" and what is called "gambling". Assuming you have 5000U, the first investment is only 1000, the market rises by 20%, you earn 200, use this 200 to add to the second investment, and continue to rise? Then roll it again. Each layer of position is a reward given by the market, not something you bet on. When the market changes, what you lose is the profit, while the principal remains intact. This is the underlying logic of rolling positions. Many people just burst while rolling? Very simple: Caught in a trap and added positions Emotions are running high, just go for it. When it rises, it's exciting; when it falls, it's bearable. You are not rolling, you are gambling. There are 3 conditions that are truly suitable for rolling positions: The trend is clear (those that can rise for several days are not just based on news). The market has emotions (preferably with a hint of FOMO) The currency trend is clean (don't choose those that crash immediately after a spike) It is better to stay empty than to enter a chaotic position. How to roll in practice? a trap logic: Step 1: Break through the high point and build a position of 20% Step 2: rise 15~20%, use the profit to add one more Step 3: The rise expands, roll in another amount. Finally: If it consolidates or breaks below the short-term support, take profit and withdraw. Running like this can conservatively multiply several times; the key is stability and not being afraid of market fluctuations. How to take profit without "selling too soon"? Trailing Stop Method: When the price rises, move the stop-loss point up to secure profits. Partial liquidation method: Sell a portion at key levels and let the remaining profits run. Doing more is not as good as holding onto it; holding onto it is not as good as holding onto it skillfully. The principal is the seed, the profit is the fuel, and the trend is the wind direction. All you have to do is roll the snowball with the wind. A bull market is not about trading every day, but about making a correct bet once and then gradually expanding. If this wave is steady, you can also become someone who doubles their investment. Don't rush blindly anymore, The opportunities in the market are only given to those who truly understand the rhythm. Only by following the rhythm and understanding the logic can one secure profits in the market and avoid being harvested as leeks!
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Why do you keep losing more and more in contracts, while some people have increased their profits by dozens of times in a year using a trap method?
It's not that they are lucky, but that they have mastered an iron rule: going with the trend + compound interest.
We often say "roll over the position," but most people misunderstand it. They think rolling over the position means to increase their investment as they earn more, but a wave of correction wipes out their profits and their capital also gets destroyed.
Real masters of rolling positions rely on "only using profits to increase positions, not touching the principal."
Distinguish clearly: what is called "rolling" and what is called "gambling".
Assuming you have 5000U, the first investment is only 1000, the market rises by 20%, you earn 200, use this 200 to add to the second investment, and continue to rise? Then roll it again.
Each layer of position is a reward given by the market, not something you bet on. When the market changes, what you lose is the profit, while the principal remains intact. This is the underlying logic of rolling positions.
Many people just burst while rolling?
Very simple:
Caught in a trap and added positions
Emotions are running high, just go for it.
When it rises, it's exciting; when it falls, it's bearable.
You are not rolling, you are gambling.
There are 3 conditions that are truly suitable for rolling positions:
The trend is clear (those that can rise for several days are not just based on news).
The market has emotions (preferably with a hint of FOMO)
The currency trend is clean (don't choose those that crash immediately after a spike)
It is better to stay empty than to enter a chaotic position.
How to roll in practice?
a trap logic:
Step 1: Break through the high point and build a position of 20%
Step 2: rise 15~20%, use the profit to add one more
Step 3: The rise expands, roll in another amount.
Finally: If it consolidates or breaks below the short-term support, take profit and withdraw.
Running like this can conservatively multiply several times; the key is stability and not being afraid of market fluctuations.
How to take profit without "selling too soon"?
Trailing Stop Method: When the price rises, move the stop-loss point up to secure profits.
Partial liquidation method: Sell a portion at key levels and let the remaining profits run.
Doing more is not as good as holding onto it; holding onto it is not as good as holding onto it skillfully.
The principal is the seed, the profit is the fuel, and the trend is the wind direction.
All you have to do is roll the snowball with the wind.
A bull market is not about trading every day, but about making a correct bet once and then gradually expanding.
If this wave is steady, you can also become someone who doubles their investment.
Don't rush blindly anymore,
The opportunities in the market are only given to those who truly understand the rhythm.
Only by following the rhythm and understanding the logic can one secure profits in the market and avoid being harvested as leeks!