In contract trading, liquidation events happen every day. But have you ever wondered why others can steadily profit while you keep getting liquidated?

It might be a bit harsh to say, but liquidation isn't really about luck; the core issue often lies in the mindset of rolling positions.

**The typical trader’s logic for rolling positions is like this:**

When the market drops, they immediately add to their position. The more they add, the deeper they go—initially aiming to average down, but instead, they end up losing more and more. In the end? Liquidation. The reason is simple—using your principal to gamble, but you can't beat market volatility.

You might think that if you just hold on and wait for the market to reverse, you'll break even. But in reality, the more money you pour in, the bigger your losses. That’s why so many people keep bleeding in this game.

**So how do the people who actually make money play?**

Their logic for rolling positions is completely different—they let profits roll into profits, keeping the principal intact from start to finish. That’s the real secret to successful position rolling.

What’s the key? It’s to use the profits you make to increase your position size, rather than repeatedly risking your principal. This way, your entire account acts like a "profit snowball"—growing bigger and bigger as you roll.

**How exactly does this work? Let’s take an example with 8,000U principal, assuming you’re bearish on a mainstream coin:**

The first stage is testing. Use 400U to open a small position, with leverage set between 3x and 5x. The goal here isn’t to get rich quick but to verify if your direction is correct. Stop-loss must be set in advance—no hesitation.

Once this position starts to profit, the second stage begins. When floating profit reaches 50%, you don’t add more with your principal; instead, you use the profits you’ve earned to increase your position size. Don’t get this backwards—add to the floating profit, not the principal. This small detail determines whether you grow steadily or blow up at the end.

When the profits in your account are approaching the size of your principal, the third stage begins—lock in some profits and use that money to hedge against potential risks. If the market continues to move as you predicted, you can keep chasing profits and continue building your position with the profits.

**What’s the result?**

Your principal stays intact, and profits grow through market fluctuations. After a decent market move, your initial few thousand U could swell into tens of thousands. The key? Never exposing your principal to danger.

Every penny you earn becomes fuel for the next round of position expansion. This logic allows you to grow steadily amid volatility, rather than being destroyed by wave after wave of market swings.

**So what’s the root cause of liquidation?**

It’s often not because of wrong market direction judgment, but because of losing rhythm. Or blindly following the trend, treating trading like gambling. The true rolling mindset is to let profits do the work for you, rather than betting everything on a single shot.

What’s the main point? Discipline. Don’t make frequent reckless moves. Stay calm, keep your composure—this is how you survive longer. In this market, longevity is far more important than quick gains.

**The current market situation is actually an opportunity.**

If you’re still stuck in place, repeatedly getting liquidated, it’s better to engrain this mindset now. Use the right rolling strategy, and your account curve will naturally start trending upward. This isn’t about getting rich overnight; it’s about solid compound growth. Take it slow, and you’ll get there faster.