Have you ever wondered why some people achieve a class leap in a bull market through position rolling, while most end up losing everything in the process?

Actually, the secret is simple: the gap between understanding and not understanding is just the "trend recognition + position control" hurdle. But to be honest, these two seemingly simple things, 90% of people only learn the surface.

**Why is position rolling so tempting?**

Because it is the fastest way to make money in the crypto world, and also the most dangerous. Risk and reward always come hand in hand. If you really want to survive longer on this path, you must first understand what the essence of position rolling is.

**The core logic of position rolling is actually just this**

It's not mindlessly adding positions all at once, but confirming the trend first, using unrealized gains as ammunition, and buying more as the price rises. It sounds simple, but in practice, it requires you to have enough self-control.

Suppose you have 100,000 yuan in your account. What's the first step? Invest 20% of your total funds, which is 20,000 yuan, to open a position. Why 20%? Because this way, even if the market reverses later, your principal pool can still be preserved.

The next steps depend on your execution ability. After the price increases by 10% to 20%, use the profits you earned to add to your position. For example, if you earned 2,000 yuan, use that 2,000 yuan to add more. The key point here — never use new principal to top up, only use the profits already earned to roll. From a purely mathematical perspective, this increases your principal safety level.

**Why do so many people lose money in position rolling?**

Where's the problem? They do the opposite. When the market declines, they start to add to their positions, trying to average down, but end up losing more and more, and finally their entire account is dragged into a black hole. This kind of averaging down in a bear market or sideways market is a suicidal move.

**Not all market conditions are suitable for position rolling**

You need to confirm that three conditions are met simultaneously: first, the overall trend is indeed upward; second, market sentiment is in a frenzy; third, the coin you favor has enough liquidity to support it (we call this "whales controlling the market")).

As long as one of these three conditions is broken, you must stop immediately and secure the profits you've already made. Many people's problem is greed — they keep rolling even when the trend weakens, ending up trapped.

**Let's analyze a practical case**

Step 1: When the price breaks through the previous high, you enter cautiously, initially investing 20% of your position.

Don't go all in at once; leave yourself some room.

Step 2: After the price rises about 20%, look at the unrealized gains, and use that profit to add another position, this time adding 10%.

Step 3: If the trend continues and rises another 30%, use the profits again to add more.

How to decide when to exit? When the market shows signs of high-volume stagnation at the top, or breaks below your 5-day moving average support, then you should take profits entirely. Following this trend operation rhythm, your capital can usually multiply 3 to 5 times.

**Profit-taking strategies combined with position rolling are unbeatable**

Those who only roll without taking profits will ultimately lose everything. How to take profits? There are two approaches:

One is the trailing stop-loss method. Every time the price rises by 10%, move your stop-loss line up by 5%. This maximizes the protection of your profits while allowing you to continue riding the trend.

The second is partial profit-taking. Sell part of your position at key resistance levels as insurance, and let the remaining position run. The benefit of this approach is that you won't miss the main upward wave by exiting too early, nor will you give back all your profits out of greed.

**To sum up**

Position rolling is not gambling; it is a disciplined strategy. Trend recognition, position control, and profit-taking execution — all three are indispensable. Most failures are not due to a lack of understanding of these principles, but because of insufficient psychological resilience to stick to these rules.

When the next market wave arrives, are you ready?