Many people have misconceptions about rolling positions, thinking it's a secret to quick wealth. In fact, let me tell you the truth—this thing is more like a "gambling skill."

I've seen too many things over the years. Someone doubling their position overnight is a real story, but I've seen even more people blow up and get liquidated. Behind those one-trade endings are similar stories.

What is the truth about rolling positions? It's not mindless adding to your position, but using the profits earned to gamble for more, making the principal snowball bigger in the trend. For example, you invest $10,000 long, and when the market rises to $12,000, you take the floating profit of $2,000 to add to your position, letting the position follow the trend. Sounds good, but it's like walking on a tightrope.

Why do 90% of people end up falling off? It boils down to a few reasons: first, greed—can't hold the position, makes some profit and wants more, but then the market turns and profits are wiped out; second, an unwillingness to accept losses—still holding on after losing, even doubling down, and finally getting forced to close the position; third, frequently changing ideas—switching between long and short, getting beaten around by the market.

My view is straightforward: rolling positions itself isn't right or wrong; it depends on how you use it. Used correctly, it's a money printer; used wrongly, it becomes a money shredder.

When can you really start? I don't roll every day all year round; I wait for 2 to 3 highly certain opportunities, and the rest of the time I just relax. I’ve summarized three situations with the highest win rates:

The first is a long-term sideways consolidation followed by a breakout. For example, Bitcoin stays in the $30,000 to $32,000 range for a month, then suddenly breaks through $32,000—this is almost certainly the start of a big trend, a good time to enter.

The second is a sharp correction in a bull market. After a bull run, there will be a pullback—rising from $40,000 to $45,000 and then falling back to $42,000. Such a 10% to 20% correction is actually an opportunity to buy at a low price.

The third is a weekly chart breakout of an important level. Once the weekly chart breaks through a key resistance like the previous high, it indicates the big trend is confirmed, and there’s enough room for you to eat the gains.

Apart from these situations, trying to roll positions in choppy markets? That’s gambling, and I don’t recommend it.