A very common phenomenon in the crypto world is—making money and losing it, losing and then making it again. Many people are trapped in this vicious cycle to a frightening extent. But upon closer inspection, most people are not lacking in skills; they simply haven't understood how to control their position sizes.



There was a trader who used a rolling position strategy, turning $3,000 into $9,700 in just three weeks. This isn't some incredible miracle, but for him, it meant something different—he finally broke out of the dead cycle of repeatedly getting liquidated over the past two years.

This guy had been trading cryptocurrencies for two years, with his mind full of dreams of quick wealth. Habitually over-leveraging, never setting stop-losses, after a few liquidations, he felt a bit hopeless. It wasn't until later that he realized the problem wasn't about how to pick coins, but about how to manage risk.

The core idea isn't complicated: first, use a small portion of the principal to experiment. Once you make a profit, treat that profit as "ammunition" to open new positions. Even if the new position hits a stop-loss, you're only losing the profit you've made before; the principal remains untouched. This keeps a much calmer mindset.

So how exactly to operate? For example, invest only 20% of the principal in the first trade. When the profit reaches 2%, lock in some of the profit, and use the remaining profit to open the next position. Keep rolling like this, and the main account balance is protected at all times.

But there's another question—when should you place an order, and when should you hold back? This requires passing three hurdles: First, observe market sentiment. If everywhere you hear "must rise," then hold off for now; Second, monitor the movements of the main funds. Only enter when there are clear signs of accumulation; Third, the most critical factor is your own state of mind. If you're feeling anxious or tempted to gamble, then decisively refrain from trading.

This guy strictly follows these rules. No all-in bets, no following signals in chat groups—just steady and prudent progress. Later, he told others that even if he only makes $100, he doesn't rush to withdraw. Instead, he uses that profit to open new positions—if he loses, the principal is safe, and he feels very secure.

This is the difference between most retail investors and those who can truly profit long-term. Ordinary retail traders get anxious to withdraw after making some money, thinking locking in gains is safest, fearing the night might bring trouble. But successful traders treat profits as "bullets" that can compound, rolling them over again and again.

Mathematically speaking, if you win 6 out of 10 trades, your account can double steadily. The crypto market is never short of luck; what’s lacking is discipline.

This transformation is visible. Someone's mindset shifts from rushing to get rich quickly to a more stable approach of "protect the principal first, then consider earning profits." Their entire trading approach changes. That’s the real way to survive longer in the market.
View Original
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.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
RugpullSurvivorvip
· 4h ago
That's right, it's a discipline issue. Losing your mindset and nothing will help. Rolling positions sounds simple, but actually executing it is quite difficult. Seeing a rise and wanting to go all-in, this bad habit needs to be changed. Protecting your principal really allows you to sleep peacefully.
View OriginalReply0
All-InQueenvip
· 23h ago
Damn, isn't this the same principle I only understood two years ago after losing 300,000 in a bad trade?
View OriginalReply0
ForumLurkervip
· 01-12 12:53
Closing positions has some real skills, but executing it is much harder than the theory suggests. Honestly, it's still a mindset issue; very few people can truly follow discipline. Hearing about going from 3000 to 9700 sounds great, but looking back at those two years of liquidations, it feels like it was meant to be that way. The key is not to rush, but who in the crypto world can really stay calm? This guy managed to stick it out, which is really not easy. Most people want to run after making 200, haha. If you're feeling anxious, don't trade. It's easy to say, but actually doing it is tough... I haven't been able to resist myself. It's really just replacing greed with patience. It sounds simple, but it takes a lot of brainpower.
View OriginalReply0
RugResistantvip
· 01-12 12:50
To be honest, I've heard this theory many times, but very few people actually stick with it.
View OriginalReply0
OPsychologyvip
· 01-12 12:43
Basically, it's a mindset issue; very few people can truly achieve it.
View OriginalReply0
0xInsomniavip
· 01-12 12:39
That's right, the principal is the key. Those who keep going all-in have all become weeds. Psychological issues are indeed the main factor; technical skills are secondary. Rolling over positions is really much better than rushing to withdraw; compound interest earned by leaving profits to grow is the true way. This guy can stick to discipline, which makes him more clear-headed than most people. The key is to survive first; living longer naturally means making money. I've heard too many people say "This wave will definitely rise," only to get liquidated directly. Stop-loss is a hurdle that 99% of retail traders can't get past. Not following the trend already makes you win half the battle. Position management is truly the ceiling of trading. Winning 6 out of 10 trades doubles your capital; the threshold isn't that high. Panic in your heart but still going all-in is the fastest way to die. This guy's mental shift is the most worth learning from.
View OriginalReply0
MemeKingNFTvip
· 01-12 12:29
That's right, discipline is truly the most valuable thing. I've already been wiped out twice by going all-in immediately. This is the rise and fall of the mainland; understanding risk control is the only way to survive and see the next bull market. The rolling position strategy sounds simple, but the real challenge is that the mindset is the biggest enemy when executing. If I had understood this two years ago, it would have been too late to say anything now. The principle of an eternal motion machine of capital, with profits as bullets—I'm in awe of this logic. The key is to suppress that desire to gamble, easy to say but truly hell to do. Winning 6 out of 10 times to double the money? I feel like I'm the unlucky 4 times.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)