Looking at screenshots of contracts on social media, many people are envious and start to follow suit. And then what happens? The more they fall, the more they add, the more they get trapped, and finally they blow up faster than anyone else.
Actually, the problem isn't luck, but that most people don't understand what true position rolling is. Most are not doing position rolling; they are emotionally gambling—adding margin repeatedly after losing money, ignoring the principal, and increasing their positions, with their mindset collapsing faster and faster.
True position rolling boils down to this: let profits take risks, and keep the principal always intact. This is not just a difference in trading methods; it’s a completely different mindset.
**Wrong approach vs right approach**
Ordinary people's "position rolling": seeing the market move, impulsively rushing in. Losing? Continue to add margin, violating the basic principle "do not add to losing positions." As a result, positions pile up, and a slight fluctuation gets them wiped out.
How do experienced traders do it? Reduce positions when floating losses occur, add positions only when floating profits are available. Increase positions in a strong trend to maximize profits, and cut losses decisively when needed. This is disciplined position rolling, fundamentally an art of capital management, not gambling.
**My own practical steps**
Suppose the account has 8000U, and I’m bearish on BTC, how do I operate?
**Step 1: Test the waters**
Use only 5% of total funds (400U) for a trial trade, with leverage controlled at 3-5x. The key is to set a stop loss—never lose more than 2% of the principal on a single trade. This step isn’t about making big money; it’s about sensing whether the market direction is correct.
**Step 2: Add to positions**
If the first step is profitable, take the profits and continue adding to positions. The principal remains the original 8000U, just reinvesting the earned profits to test the next level. If the market reverses and triggers a stop loss, only the profits are lost, and the principal remains intact.
In other words, you use profits to explore, while your principal stays safely at home. When the market is good, profits grow; when the market is bad, at most you’ve taken a discount on your gains. Never gamble with your principal—that’s the line between professional traders and gamblers.
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ProtocolRebel
· 01-07 11:49
That's right, those following the trend don't understand what risk management is at all; they're just gamblers. The phrase "never move your principal" should be engraved in your mind.
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All those screenshots on Moments are survivor bias; most people get liquidated, but no one posts about it.
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Adding to your position when floating losses occur? That's not averaging down; that's courting death.
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The 5% trial order sounds very practical. Most people go all-in right away and deserve to be washed out.
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It sounds simple, but how many can truly keep their principal untouched? Most still can't control their hands.
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Using profits to gamble with the principal and lie down—that kind of thinking is far from good.
View OriginalReply0
OnchainArchaeologist
· 01-07 11:45
Keeping the principal unchanged is absolutely right. I used to be the kind of idiot who kept adding more after losing, and it took me two months to realize this principle.
View OriginalReply0
GasFeeCrier
· 01-07 11:42
Not moving the principal is a bold statement. Most people die at the step of adding margin, completely unable to distinguish between position rolling and gambling.
View OriginalReply0
just_here_for_vibes
· 01-07 11:23
This is the right way. Keep the principal solid and unmoving, and use the profits to gamble—that's smart.
Looking at screenshots of contracts on social media, many people are envious and start to follow suit. And then what happens? The more they fall, the more they add, the more they get trapped, and finally they blow up faster than anyone else.
Actually, the problem isn't luck, but that most people don't understand what true position rolling is. Most are not doing position rolling; they are emotionally gambling—adding margin repeatedly after losing money, ignoring the principal, and increasing their positions, with their mindset collapsing faster and faster.
True position rolling boils down to this: let profits take risks, and keep the principal always intact. This is not just a difference in trading methods; it’s a completely different mindset.
**Wrong approach vs right approach**
Ordinary people's "position rolling": seeing the market move, impulsively rushing in. Losing? Continue to add margin, violating the basic principle "do not add to losing positions." As a result, positions pile up, and a slight fluctuation gets them wiped out.
How do experienced traders do it? Reduce positions when floating losses occur, add positions only when floating profits are available. Increase positions in a strong trend to maximize profits, and cut losses decisively when needed. This is disciplined position rolling, fundamentally an art of capital management, not gambling.
**My own practical steps**
Suppose the account has 8000U, and I’m bearish on BTC, how do I operate?
**Step 1: Test the waters**
Use only 5% of total funds (400U) for a trial trade, with leverage controlled at 3-5x. The key is to set a stop loss—never lose more than 2% of the principal on a single trade. This step isn’t about making big money; it’s about sensing whether the market direction is correct.
**Step 2: Add to positions**
If the first step is profitable, take the profits and continue adding to positions. The principal remains the original 8000U, just reinvesting the earned profits to test the next level. If the market reverses and triggers a stop loss, only the profits are lost, and the principal remains intact.
In other words, you use profits to explore, while your principal stays safely at home. When the market is good, profits grow; when the market is bad, at most you’ve taken a discount on your gains. Never gamble with your principal—that’s the line between professional traders and gamblers.