The recent crypto market has staged a thrilling case. Trader James Wynn started with a capital of $10,000 and used a rolling profit strategy to once reach a peak of $940,000, only to be ruthlessly knocked back by the market, ultimately leaving with just $160,000. What trading traps are hidden in this journey from wealth to loss?

The cause of the incident is simple: recently, the market rebounded, and Wynn decided to go all out. His strategy is called "rolling profit"—the logic sounds tempting: profit is immediately added to increase positions, continuously pushing up leverage multiples. The initial $10,000 capital was like hitting the accelerator, soaring to $940,000. For a time, many traders regarded him as a new legend, thinking of copying his approach.

The problem is that this strategy is essentially a high-risk gamble. High leverage combined with rolling in additional positions means that every dollar earned becomes new capital to open larger positions. The result is that the liquidation price gets closer and closer to the current market price—like someone dancing on the edge of a cliff, with the safety margin completely gone.

The market's turning point came suddenly. A core asset experienced only a slight pullback, and Wynn’s seemingly massive $940,000 position instantly collapsed, with the system forcibly liquidating it. When the dust settled, only $160,000 remained in the account. From the peak to the fall, there was no opportunity for any adjustment.

The key lesson from this case is: leverage is a double-edged sword. The rolling strategy amplifies gains but also exponentially expands risks. Market volatility is normal; there is no forever one-sided trend. True trading wisdom lies not in how high you can earn, but in how long you can survive in the market.