In the past eight years in the cryptocurrency world, I have endured all the hardships I needed to experience.

In the winter of 2016, I curled up in a rented room in a village within Guangzhou, where the bed was already moldy, and there was just over a hundred yuan left in my bank card. I even hesitated for half a day over a fifteen-yuan meal. I stubbornly endured this kind of life for almost a year and a half.

Who would have thought that eight years later, I could stand on the balcony of Shenzhen Bay One and look at over twenty million in assets in my account? This isn't just good luck; it’s the four lessons I learned from repeated losses.

The first lesson is to learn to recognize the tricks of the market manipulators. In 2017, I chased after a shitcoin that rose by 300%, and ended up losing everything. Later, I figured out the trick: if a coin suddenly surges over 30%, then consolidates at a high for about three days, and suddenly drops more than 15%, it's likely that the manipulators are preparing to withdraw.

The second lesson is that high-level consolidation is actually more dangerous than a major drop. In 2019, I held a mainstream coin that consolidated at a high for two months, with decreasing trading volume. I thought it was stable, but it plummeted to 12 dollars. Now I understand that when the turnover rate is below 2% and the price is more than 20% away from the 20-day moving average, it often means that funds are quietly exiting. In such cases, I will directly place a short position in my system.

The third lesson is that true bottoms speak through volume. On the day of “3・12” in 2020, I tried to catch the bottom of $LINK, but ended up buying halfway up the mountain. Later, I reviewed hundreds of historical bottom cases and found that the real bottom signal is: first, volume shrinks, then price consolidates, followed by three consecutive days of gentle increasing small bullish candlesticks. Last year, when Bitcoin displayed this pattern at 25000 dollars, I went all in and exited at 42000 dollars, making enough for a down payment in Guangzhou.

The fourth lesson is that trading volume is the lifeblood, and position size is the rhythm. I often remind myself that candlesticks are just surface-level; trading volume is the essence; always operate with half the position, without greed or fear. Last year, when $PEPE surged, I waited until it broke out of the range with volume five times higher than usual before entering. Once the trend line broke, I took my profits. Although I only made 12 times my investment, I successfully avoided the subsequent crash.

Follow Captain Fuqi, and plan ahead every day on the ship! If you want to keep up with Captain Fuqi in real time, we build positions together; if we earn, we earn together; if we lose, we lose together! #加密市场回调