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What is the most common way retail investors meet their end in the crypto market? Desperately seeking to get rich quick, heavily leveraging and going all-in, never cutting losses, then getting wiped out once or twice and completely collapsing. But some people change their strategies and turn $3,000 into $9,700 in just three weeks. What's the difference? One key word: rolling positions.
Rather than just trading skills, it’s more about psychological resilience. Many people want to cash out as soon as they make a little profit, thinking that’s the only way to truly own it. But the ones who last the longest in the market are precisely those willing to treat profits as new "ammunition" to keep investing.
The core logic of rolling positions is actually very simple: start by using a small portion of your capital to test the waters. When you make a profit, treat that profit as new trading capital. Even if you set a stop-loss later, you only lose the previously earned profit, and the original capital remains intact. The benefit of this approach is that it completely changes your mindset—once you realize you're losing profits, not your principal, the impulsiveness and gambler’s mentality naturally fade away.
How exactly to do it? Take the first trade as an example: only invest 20% of your total capital. Once you gain a 2% profit, immediately lock in part of the profit, and use the remaining profit to open a new position. Repeat this cycle, making each trade relatively independent, effectively diversifying risk. Winning 6 out of 10 trades can steadily double your account. You don’t need to be right every time—just maintain a long-term win rate and discipline.
But having a strategy alone isn’t enough. More importantly, you need to pass the "three checkpoints" before executing:
**First checkpoint: Market sentiment.** When everyone is shouting "must rise," that’s often the most dangerous moment. At this point, it’s better to stop and avoid being pushed into chasing highs by emotions.
**Second checkpoint: Major players’ movements.** Don’t guess blindly based on feelings. Wait for clear accumulation signals before entering. Observe objective indicators like large transfers and exchange fund flows, rather than being led by rumors.
**Third checkpoint: Your own state.** This is the easiest to overlook. If you start feeling anxious or tempted to gamble, decisively refrain from trading. Many wipeouts happen at this moment of losing control.
By sticking to this logic, your mindset will naturally change. No more all-in, no more blindly following signals, just steady and disciplined progress. Even if you’re only making $100 now, don’t rush to withdraw—continue to use that profit to open new trades. If you lose? No problem, your principal is safe, and your mindset remains calm and grounded.
This is the real way to sustain profitability in the market. The crypto world is never short of luck; what’s lacking is discipline. And cultivating discipline often starts with this small change: begin by protecting your principal, then use profits to explore more possibilities.