After many years of trading contracts, the most annoying thing is hearing people say, "I got liquidated purely because of bad luck." To be honest, I'm tired of this excuse, but the real reason for liquidation is actually very simple—no position rolling.

There are countless people who fall into this trap, and their death is always the same pattern: at the start of a trend, they rush to take profits, only to look back and see the price soaring without them; the direction is correct, but a 5% pullback causes them to panic and get washed out; they add to their position when the price drops, increasing their losses, and a single acceleration line wipes them out completely. On the surface, it looks like trading, but deep down, it’s no different from rolling dice.

Veteran traders who have survived in the contract market tend to think differently. They don’t rely on a single trade to turn things around; their only goal is: keep the principal alive.

The problem is, many people treat position rolling as "floating profit adding to the position + going all-in," which is not really rolling positions at all—it's just funneling funds to the exchange. My own approach to rolling positions is very straightforward: small positions for trial, confirm the direction, and follow, only using the profits earned to take risks.

For example, if you’re bearish on a certain structure and have $10,000, you wouldn’t go all-in right away. The first trade uses a very small position to test the waters, with a tight stop-loss, and if wrong, you exit immediately. Once the direction is confirmed, you don’t need to add more with your principal; you only follow with the profits you’ve made. The higher the confidence in the trend, the deeper you participate, but if there are signs of reversal, you should quickly take profits.

In a real big trend, once floating profits quickly surpass the principal, experienced traders will lock in gains first instead of continuing to run naked. In the same market, some make huge profits while others get liquidated. The key isn’t about reading the chart correctly, but about the rhythm and order of position scaling.

The contract market only recognizes rules, not courage. Knowing when to lighten up, when to press hard, when to enter, and when to stop—understanding these is the real threshold of position rolling. As for how I judge the signals that indicate "it’s time to start rolling," I never do it at the most active part of the candlestick chart. When it truly reaches that point, I will understand on my own.