At three in the morning, he called, his voice trembling: "Brother Mao, I blew up again, I saw the right direction, just a four-point pullback, and I was wiped out."

I asked him how he was managing his position.
"Got the direction right, threw in 8,000 USD, 50x leverage."
I said, you saw the right direction, but you didn't leave yourself any room to survive.
Full position with 8,000 USD, a four-point pullback and you're wiped out. The direction was correct, but what's the use?
There was silence on the other end of the line for a few seconds.
After a moment, he whispered, "So, how should I really play this?"
I didn't explain complicated stuff, just drew him a simple plan.
Many people think that rolling over positions means "adding to floating profits, going all-in, getting rich overnight."
They're terribly wrong. That kind of approach, one pullback and you're back to square one.
The real core of rolling over positions is three sentences:
Your principal is always safe.
Add to your position only when breaking through key levels.
Only the profits are rolled over.
Taking 10,000 USD as an example.
Start with 500 USD, 100x leverage, so the position is 50,000 USD.
Set the stop-loss near the opening position; if wrong, only lose 500.
When that 500 USD earns 250 USD, take half of the profit to add to the position.
If the price drops below the previous low, add 70% of the remaining profit.
The entire principal of 10,000 USD never moved.
Market crashes 30%, turning 10,000 USD into 48,000 USD.
The principal remains 10,000 USD, all profits are extracted from the market.
He took this method and ran it for half a month, then messaged me:
"Finally understand where I went wrong before. It’s not about not seeing the right direction, but always gambling with my life."