The longer you stay in the crypto world, the more you realize a harsh truth—most people die from overtrading.

There was a trader whose account once had only $900. During that time, he was glued to the K-line chart every day, thinking either to turn things around or to exit completely. Three years later, his account reached seven figures. When asked about his secret, he said it was simply two words: discipline.

Don’t listen to those who say luck is everything. What you don’t see are the nights spent staying up late reviewing trades and repeatedly verifying trading logic. Today, I will break down the core logic of this turnaround— the rolling position strategy.

**90% of the market is noise**

Crypto market volatility is a double-edged sword. High volatility means more opportunities, but also more traps. The problem is that most people can’t tell which is which.

What’s the result? A lot of people trade every day; not trading makes them uncomfortable. Frequent operations sound diligent, but in reality, they are slowly eroding capital through transaction fees. There’s a very realistic saying in the market: the most expensive thing isn’t losses, but unnecessary trades.

Actually, very few market conditions are worth participating in. Instead of being repeatedly washed out in oscillations, it’s better to stand aside and wait. Like hunting—expert hunters can lie still for hours just for that perfect shot. Before last year’s big market move, someone held a cash position for nearly two months, while others mocked him. When the market finally arrived, he seized the opportunity.

There are always opportunities in the market; what’s missing is patience.

**Three levels of entry: rhythm is key**

Many people think rolling positions means going all-in at once, and that staggered entries are also all-in. That’s not the case. True rolling is a planned, disciplined, phased process of building a position.

First layer (Reconnaissance position): Use 10%-20% of total funds, leverage controlled within 3x. The goal here isn’t to make money but to verify whether your judgment is correct. For example, if Bitcoin breaks a key resistance level with increasing volume, that’s a signal worth testing. But testing means just that—don’t put your entire life savings on it.

Second layer (Adding position): When the first layer has gained 20%-30% and the trend continues to confirm, add the second batch. Use 30%-40% of funds, with leverage increased moderately to around 5x, provided the first layer has already buffered profits. This way, even if there’s subsequent volatility, you won’t be wiped out by a quick pullback.

Third layer (Main position): At this point, the trend is basically confirmed, candlestick patterns are clear, and market consensus begins to form. Use the remaining 20%-40% of funds, but reduce leverage back to 3-5x. Why? Because now you’re a main holder, and it’s crucial to protect your principal.

The benefits of this approach are obvious. First, risk diversification—no all-in at once, but testing the trend with smaller capital. Second, stability of mindset—when the market pulls back, you won’t panic because you have plans for the second and third layers. Third, cost optimization—average entry costs become more reasonable, avoiding the awkward situation of being caught in a position immediately after entry.

**Stop-loss and take-profit are equally important**

Many people only talk about how much they can earn, rarely about setting stop-losses. That’s why most people can’t make money.

When entering positions with rolling strategies, stop-loss points must be set in advance. For the reconnaissance position, exit if the price drops 3%-5% below the entry point. For adding and main positions, adjust according to leverage, but generally not exceeding 5%. Sounds like a small loss? Quite the opposite—such discipline allows you to survive longer.

Take-profit should also be layered. When profits reach about 20%, consider reducing 30%-50% of the position to lock in gains. When profits reach 30%-50%, consider further reducing. This isn’t greed; it’s respecting market uncertainty. Markets can move fast in, and out, so locking in gains is always wise.

**Mindset building is the highest skill**

Technical skills, capital management, trading strategies—there are countless tutorials online. The real difference lies in whether you can stay rational after consecutive losses. Can you watch the market soar without FOMO? Can you hold a position in cash without anxiety?

This is the most scarce ability in the crypto space.

The essence of the rolling position strategy isn’t about earning the fastest, but about earning steadily. It teaches how to maintain rhythm amid volatility, exercise restraint amid temptation, and stay calm amid fear. Mastering this, you will grasp the survival rules of the crypto world.