Can you believe it? In the midst of the cries of "contract liquidation" and "meme coins going to zero" in the crypto market, there is a 35-year-old veteran from the Northeast who has only used the most basic version of K-line software, has not touched leverage for 9 years, and has never chased so-called "insider information". He relied on a method that is so "stupidly obvious" that he turned a capital of 100,000 into more than 38 million.
I only realized when I had tea with her recently that those principles we considered as "antiques" are precisely the lifeline that helps us navigate the bull and bear markets. She currently owns 5 rental properties, and her monthly cash flow is more stable than many people's annual salary, yet she still spends 1 hour every day analyzing volume indicators— in her words: "The market is always changing, but human nature hasn't changed. Greed and fear are written on the volume bars, more honestly than any analysis report."
Six "anti-human nature iron rules" that I have broken down to share with you.
1. A slow decline followed by a sharp rise looks at the accumulation, and grinding the bottom is more important than rebounding. Many people panic when they see prices drop for a few days and chase after two days of rise; in fact, real opportunities are hidden in the "grind". If a market experiences a sharp rise and then starts to slowly adjust, with trading volume not shrinking but rather gently expanding, this doesn't mean the main force has run away; it means they are borrowing fluctuations to accumulate shares—like simmering soup, only slow cooking brings out the flavor; high heat will only burn it. Last year, a certain mainstream asset adjusted from 20,000 to 16,000, grinding for a full 45 days. Those who cursed "the bear is here" at that time ended up slapping their thighs later.
2. A sudden drop followed by a weak rebound shouldn't be stubbornly endured; capital withdrawal is more honest than price. A sudden crash isn't scary; what's scary is that after the drop, the rebound can't even recover half, and the trading volume keeps decreasing. This indicates that the capital that took over is retreating, leaving only those trapped in losses "playing dead". I've seen too many people shout "bottom fishing" at such times, but what they end up buying isn't the bottom; it's the hot potato thrown away by the main force. Remember: a rebound during a decline is like struggling after falling into water; a powerless struggle will only make you sink faster.
3. A high trading volume isn't the peak; low volume is the alarm. Many people get scared and run away when they see high trading volumes at high positions, but as long as the volume can be sustained, the market hasn't reached its end—high volumes represent significant divergence; where there are sellers, there are buyers, indicating that capital is still in a game. The real danger is "quiet at the mountain top": when the price rises near previous highs, but trading volume is half of what it was before, this is when the main force is quietly unloading. By the time you react, the escape route has long disappeared.
4. The bottom needs to wait for "multiple confirmations"; a single bullish candle can't be trusted. After a sharp drop, when a large bullish candle appears, don't rush to shout "the bottom has come"; that is likely a trick of "don't go, fellow villager". The true bottom is established through "repeated verification": after the first rebound, if it doesn't break the previous low during the pullback, and the trading volume during the second rebound is larger than the first, then during the third pullback, the chips are as steady as a rock—only then is capital voting with real money, not retail investors following the trend.
5. Watching K-lines is not as good as watching the "human heart line"; volume is the electrocardiogram of emotions. What I analyze every day isn't the rise and fall of K-lines, but the human heart behind the volume: a rising volume indicates greed is gathering, a shrinking volume indicates fear is spreading, and a declining volume indicates fierce fighting between bulls and bears. Last year, there was a small cryptocurrency that saw three consecutive days of shrinking volume and rising prices; I urged fans to run quickly, and the result was a direct crash on the fourth day—because a rising price on shrinking volume means no one is willing to take over, and the main force's game of raising prices to unload ends up being paid for by retail investors.
6. The highest state is "nothing": enduring loneliness and being able to handle prosperity. This is the most impressive sentence from my predecessor. She stayed in cash for 8 months during the bear market in 2022, watching others trade various "hot currencies" for quick money, but she remained unmoved. It wasn't until early 2023, when the market showed clear bottom signals, that she slowly entered the market. She said: "The cryptocurrency space isn't about who makes money the fastest; it's about who lasts the longest. Although it’s lonely during the cash position, only those who can endure the loneliness are qualified to steadily catch the dividends when the main rising wave comes."
In fact, there has never been any "secret" in the cryptocurrency space. Those who can make money in the long term don't rely on luck; they rely on extreme patience in executing simple principles. The reason most people lose money in the market is not due to a lack of skills, but a lack of a "steady lamp" that gets them carried away by short-term fluctuations and the stories of others' rapid wealth, ultimately turning their principal into the market's "tuition fee".
