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Many traders are asking the same question: why can others make money from the market while they always lose? The secret actually lies not in the ability to predict the market, but in the invisible art of Position management.
I recently met a fan whose story is very typical. Clearly seeing the right direction, he made a profit of 2000U on a short position and hurriedly closed it. As a result, the market continued to drop, and he couldn't resist adding to his position. In the end, his initial capital of 10,000U was forced down to only 3,000U due to the back-and-forth pull. I have seen too many such cases. Most people treat rolling positions as gambling, unaware that there are actually patterns to follow.
After years of being in this circle, I have found that the real money-making contract experts never rely on any "divine predictions." They use a mature position management system to turn a correct directional judgment into a considerable profit. It sounds simple, but to achieve accuracy, what is needed is discipline and patience.
## Practical Case: How to Turn 10,000 USDT into 28,000 USDT
Last year, when ETH was at the position of 2100 USD, I predicted it would bottom out at 1800 USD. I happened to have 10,000 U in spare cash, so I started to position myself. The whole process took 30 days, and I ultimately achieved a profit of 28,000 U. This was not based on luck, but rather followed a clear strategy.
**Step 1: Trial phase, validate judgment with minimal cost**
My principle is simple; I will never invest all my capital at once. I withdrew 500U to open a 5x short position, with a stop loss set at $2150. This means that if I incur a loss, I will exit the position with a maximum loss of 50U.
Why be so conservative? The market is full of variables in the early stages, and it may experience a slight pullback before rebounding. Use trial orders to validate your judgment and bear mistakes with the lowest cost, so even if your judgment is wrong, the losses remain within a controllable range. This is the first line of defense for capital preservation.
**Step 2: Use unrealized profits to increase your Position and let your profits work for you**
When the trial order direction is correct and floating profit appears, I did not rush to close the position to lock in profits. Instead, I increased my position based on the profit. I gradually increased from an initial position of 500U to 1500U, then to 3000U, with clear rules for the timing and amount of each position increase. The benefit of this approach is that when a large market movement occurs, you have enough position to capture the profits. If the market moves against you, the losses will not occur all at once.
The core logic is: do not fear market fluctuations, but rather fear holding on stubbornly when the direction is wrong. The art of rolling profits lies in knowing when to hold and when to expand the gains.
## Why Most People Are Still Losing Money
The root of the problem lies in the mindset. Many people see the right direction but panic, feeling the need to run as soon as they make a little profit, only to watch the market continue to rise. There are also those who, after being trapped, try to lower their costs by increasing their Position, resulting in even greater losses. There is nothing wrong with rolling over positions; the problem lies in the lack of rules.
Trading is like driving; you need to know when to accelerate, when to decelerate, and when to hit the brakes. Position management is this rule. Rolling positions without rules is just gambling.