I've heard too many legends about leverage making you rich overnight, but few people seriously talk about the risks.

High returns are inevitably accompanied by high risks, and the rolling position strategy amplifies both to the extreme. I first encountered this concept during the market surge in 2021. At that time, a story was spreading wildly in WeChat groups — a young man used 1,000 yuan of capital to short via rolling positions, and in a short period, he made 30 million. Such outrageous returns can indeed get your blood boiling, making you feel like you've discovered some secret shortcut.

But reality quickly slapped me in the face. Not long after, I watched helplessly as a friend of mine was long during a bull market rally, only to be completely wiped out due to a small, seemingly insignificant pullback. All previous gains vanished instantly, and he even lost his principal. From heaven to hell in an instant, this made me truly understand what a "double-edged sword" means.

**What exactly is rolling position?**

Many people interpret rolling position as simply "adding to your position whenever you make money," but this view is overly simplistic. True rolling position is actually a logical process: in a trending market, after earning money with leverage, your overall leverage passively decreases. You need to add to your trend position at the right time so that profits can continue to follow the trend.

For example, you start with 100,000 yuan of capital and use 10x leverage. After earning 50,000 yuan, your capital becomes 150,000 yuan, but your original leverage drops from 10x to about 6.6x. At this point, to maintain your risk exposure, you need to add to your position and adjust the leverage back to around 8x. This process is what we call rolling position.

The core principle is simply "profit first, then reduce costs." Don't use all your gains to add to your position; first withdraw your principal, and only continue trading with the profits. For instance, if your position gains 10%, first take back your principal, then use that 10% profit to add to your position. Even if you suffer losses later, your principal remains protected.

**Risks always come before rewards**

The problem is, rolling position requires precise timing and strict risk control. A slight misstep can turn you from a compound interest enthusiast into a victim of liquidation. That friend's experience is a good lesson — he kept adding at the high point, and a small fluctuation finally shattered all his dreams.

So if you want to try rolling position, remember one thing: this is not a shortcut to making money, but a highly professional operation. It requires sufficient market understanding, strict stop-loss discipline, and the psychological resilience to withstand pressure. Otherwise, this strategy will only become a tool for losing money.