Now I am 38 years old, and since I was 28, I have embarked on the journey of digital currency investment. Between 2023 and 2024, my assets successfully crossed the 8-digit milestone.
Now, my quality of life has significantly improved, staying in high-end hotels around 2000 yuan, and my suitcase, hat, and other personal items may subtly incorporate unique symbols from the crypto world, showcasing my identity and taste.
Compared to the hard work of the older generation in the industrial field or the struggles of 80s e-commerce entrepreneurs, my lifestyle seems particularly pleasant and carefree. In my investment career, I have rarely been caught up in complicated business entanglements, and the troubles of life seem to have always avoided me.
In my view, the key to investing in digital currency is maintaining a good mindset; mastering technical aspects is secondary. This calmness and composure may be the secret to my success in the crypto world.
Crypto work: High win rate structure 'bottom formation.'
Bottom formations usually appear at the end of a downtrend and consist of 3 to 4 candlesticks.
This is one of the classic combinations that beginners find easiest to learn and recognize.
The larger the volume of the third bullish candle, the higher the level of reversal, making it more reliable.
Paired with a bottom doji, it is considered perfect!
1. Technical features of bottom formations.
1. Occurs in a downtrend.
2. Consisting of three candlesticks, the first is a bearish candle, the second is a low-opening small bearish candle, small bullish candle, or doji, and the third is a bullish candle.
3. The third bullish candle's body should be large enough to nearly entirely recover or envelop the body of the first bearish candle.
2. The technical meaning of bottom formations.
Bottom formations are common high-win-rate reversal signals, indicating that after a significant price drop, the short-selling energy is almost exhausted, and the price can no longer fall. The bullish candles on the right indicate that the bulls are beginning to counterattack, intuitively reflecting the contrast of buying and selling forces, thus the probability of structural reversal is very high, indicating a bullish outlook!
Bottom formations perfectly embody the short-term trend reversals described in Dow Theory.
The first bearish candle has a lower low than the previous low.
The second candlestick shows the price stabilization and consolidation.
The third bullish candle has a higher high than the previous high.
3. Practical Logic
The first bearish candle is like a car driving on the road; the candle's drop is akin to speed, while trading volume is like power. The smaller the drop, the slower the speed; the smaller the volume, the less downward power.
The second candlestick shows the entire process of a car braking, stopping, and turning around.
The third candlestick is bullish, and like the first bearish candle, the size of the bullish candle's increase and trading volume represent speed and momentum. The larger the increase, the faster the speed; the larger the volume, the stronger the bullish momentum.
Feedback in the trend indicates that when the currency price drops to a certain extent, the bears become exhausted and can no longer lower prices, allowing the bulls to counterattack and reverse the trend. Thus, traders can follow up with buying when a bottom formation appears!
Special Reminder:
When bottom formations and ascending flags appear simultaneously, the probability of a future rally is very high, and it is also an important signal for identifying the end of a flag pattern. Strike while the iron is hot; we will discuss ascending flags tomorrow!
Directly talk about crypto trading tricks (bookmark).
Six don't invest, four don't let go:
Six don't invest:
1. For currencies that keep falling and have not stabilized around the 60-day moving average, we should avoid touching them. Follow the trend; for currencies that continue to decline, let’s wait and see when they turn around.
2. Don't buy currencies that suddenly rise after good news. When good news comes, it often signals a sell-off; currencies that have already risen significantly are likely to have major players trying to cash out.
3. If a currency rises too sharply and is far from the 5-day moving average, don’t chase it. Currencies that rise too quickly also have high risks, and chasing high prices can lead to being trapped.
4. Don't take risks with currencies that suddenly spike at high prices. High gaps carry significant risks, as it may indicate that major players are quietly selling off.
5. Avoid currencies with turnover rates exceeding 30%. A high turnover rate indicates fierce fighting between bulls and bears, so it's best to stay away from such volatile markets.
6. Don't be fooled by currencies that are still holding up in a bad environment. If the market is bad and the currency is still trying to rise, it’s likely a trick.
Four don't let go:
1. If the RSI is between 50 and 80, continue holding. An RSI in the middle to high range indicates that this currency still has strength; hold on for more profits.
2. For currencies that jump from low positions, don’t rush to sell. A gap up indicates strong bullish momentum; wait to see if it can continue to rise.
3. For currencies trending upwards, hold tightly. Following the trend, the longer you hold a currency in a rising market, the more you will earn.
4. For currencies with concentrated chips, don’t sell easily. If chips are piled together, the main force may still want to raise the price; it’s not too late to sell at a high point.
Crypto trading tips: Trading cryptocurrency must follow rules and cannot rely solely on instincts.
Seeing the trend clearly is much more reliable than guessing blindly!
Three major perspectives, ninety-nine essential sentences! The secrets of trading cryptocurrencies that big players won't tell you.
In the crypto world, a day is like a year in the human world; this statement is not an exaggeration. Many people want to hop on this speeding train, but risks and benefits coexist.
On clear days, I often receive messages in the background asking what to do if this currency drops today or whether to sell that currency tomorrow. I sense a kind of panic and confusion when facing the unpredictable crypto market.
Today, I will share a valuable insight from three perspectives: news, technology, and mindset; it's very suitable for newcomers in the crypto world who are feeling lost.
1. News Section
1. Finding ways to gather first-hand information is essential for success; analyzing major consulting media in the crypto space is particularly important.
2. Most media are business agents for large investors and are also investment advisors for retail investors.
3. Understanding the characteristics of different industries is the key to profit opportunities.
4. Sometimes buying against expert opinions is also a unique speculative approach!
5. Before investing, you must prepare well; it’s essential to have knowledge of financial basics and domestic and international trends and political dynamics. Detailed analysis of the team and practical applications is key.
6. Buy or sell when news breaks, and sell or buy when the news is confirmed.
7. You must research and judge the market yourself; don't change your decision based on unverified rumors.
8. If a team has issues, the product will likely have issues; it's better to act less.
9. Any direct investment requires professional knowledge as a foundation.
10. Those who claim to have accurate predictions are often losers.
11. Inaccurate news leads to losses; the most futile behavior is trying to guess the psychology of large investors and traders.
12. When purchasing, understand the relationship between the issuer's profit potential and the current market conditions.
13. This circle is small, but that doesn't mean there aren't circles; knowing a few big players is very helpful.
14. Don't let sudden news change your original intentions to buy or sell.
15. When good news is exhausted, it becomes bad news; when bad news is exhausted, it becomes good news.
16. Institutions have their own codes; for example, an order of '232323' might indicate a sell-off. Each institution is different, so it’s necessary to research.
17. Don't join small secret circles; if you do, you will only bring ears and brains.
18. If the white paper lacks specific content and a research and development team, it is highly likely to be a scam coin.
19. Whether a project is open-source is key; generally, open-source projects will be uploaded to GitHub. If not, caution is advised.
2. Technical Section
20. Following the right currency means you have already succeeded half the way.
21. Large investors often have unexpected strategies that deceive inexperienced retail investors to facilitate their own buying and selling. You must accurately analyze trading volume patterns.
22. The timing of buying is the most crucial aspect of virtual currency investment.
23. A decline of more than one-third is a warning sign.
24. The three steps of rising: bottom formation—breakthrough—surge!
25. If the index updates for three consecutive days but trading volume decreases each time, the future may not be good.
26. Currencies that have risen significantly will inevitably see a substantial drop, and if the drop exceeds 50%, there is a high probability of a 30% rebound.
27. It is common for small investors to be trapped by large investors, so diversified investment is crucial.
28. The rise and fall of an index is not random; it is much simpler than the patterns of a lottery. Proper screenshots and analysis are crucial!
29. Those that rise first will also likely fall first.
30. Avoid excessive switching in buying and selling; don't act rashly when in doubt, and respond to changes with stability.
31. A surge in trading volume with stable prices is a signal of nearing the top; at this time, 'leaving is the best strategy.'
32. The longer a currency hovers in a low range, the greater the upward potential, with a probability of rising 30% exceeding 70%.
33. To judge growth or decline, one must look at the gap with the trend of the times; policy is the biggest risk, yet it is still necessary.
34. Trading volume is like a pulse; you can see if it is sick.
35. Choosing the right time to buy is far more important than simply choosing a good currency; knowing how to sell is a hundred times stronger than knowing how to buy.
36. Don't put all your financial resources into one investment.
37. Avoid thinking that low prices mean high potential; when speculating, know that once a reversal occurs, it will be difficult to sell, and the decline may be significant.
38. Buying assets with slightly lower profit potential at a lower price may be more cost-effective than buying those with slightly better profit potential.
39. Without substantial experience, never engage in buying long or short trades; getting hurt is common.
40. Determining long-term investment goals and principles is the primary issue.
41. Market fluctuations have predictable patterns; mastering these patterns will ensure victory in battle.
42. A shrinking increase, with decreasing trading volume, is a clear sign of nearing the top.
43. Experience shows that technical factors typically have a shorter market duration, about one-third of that of fundamental factors.
44. Preventing being trapped at high prices is the most important lesson for beginner retail investors, so practicing with low prices is crucial.
45. If it should rise and doesn't, you should be pessimistic; if it should fall and doesn't, you should be optimistic.
46. Fundamental analysis can tell you which currencies have intrinsic beauty, while technical analysis tells you the best timing to exploit them.
47. The total funds in the market always flow in the most advantageous direction.
48. Lower-priced currencies tend to have larger price fluctuations than higher-priced ones.
49. Buy when you can, sell when you should, stop when you need to; safety first, stability above all; recklessness leads to loss, greed leads to poverty.
50. The short-term fluctuations of the market have no correlation with long-term performance.
51. You must understand the 'Sunday Theory'; many currencies rise on this day.
52. Robots should still be purchased, as they react faster than human brains.
53. The same currency can have different price fluctuations and band movements on different exchanges, so choosing a good exchange is crucial.
54. New currencies are often the best short-term choices.
55. It's best to allocate a combination of major international currencies and altcoins.
56. Major currencies tend to fluctuate steadily, while altcoins have more volatility and opportunities.
57. During rapid price increases, try not to make trades.
58. It's best not to go all in; staying half in or keeping 1/3 of your chips can allow for averaging down.
59. You must genuinely understand the operational status of the team or foundation and, if necessary, share it with the person you think is the most foolish to hear their opinions.
60. Avoid buying too many hot currencies because popular ones often rise quickly but also fall quickly.
61. You should not put all your money into one currency; try to diversify.
62. Trading volume can indicate changes; when volume starts to increase, pay attention. You may need to sell or make a quick trade.
63. What you hold will eventually need to be sold; failing to sell is foolish.
64. The highest or lowest prices during market fluctuations often become the top or bottom prices; crossing this threshold can either lead to a surge or a crash.
65. Following trends is like filling your wallet.
66. It's best to choose those with good prospects but not much hype to make money easily.
67. Experts usually devise a plan, clearly outlining each step, and then strictly follow the requirements.
68. The basic routine for institutions: building positions, testing the market, raising prices, washing out, and selling off.
69. A sudden surge in volume usually has two possibilities: either the market maker is supporting the price or institutions are buying; at this time, you should follow the trend.
70. After reaching a new level, there is generally a washout in the market; at this point, getting off may mean waiting for the next bus.
71. It's not impossible to get rich in the crypto world with 10 yuan; luck is also a key factor.
72. When encountering a major pullback, it is an opportunity to buy a little.
73. Don’t overestimate the IQ of big names; many operations are just about showcasing their limitations.
74. Before making small profits, proceed step by step without investing large amounts.
75. Buying on highs is risky; beginners should treat this currency as if it doesn’t exist.
76. Newbies should avoid chasing prices; it’s better to miss out than to rush in.
77. Be cautious with currencies that are too small and only trade on one exchange.
78. Joining for free at the beginning but later requiring various types of fees is generally indicative of a pyramid scheme; it's advisable not to participate.
79. If it hasn't been listed yet and has already multiplied many times during the fundraising period, it is advisable not to participate.
80. Arbitrage is a relatively low-risk and easy way to make money.
3. Mindset Section
81. Small gains often delay larger market movements; do not be misled by small fluctuations away from the larger trend.
82. At any time, the most trustworthy is yourself; it is crucial to walk your own path.
83. When in doubt, you should stop acting, as this indicates the market is still unclear.
84. Being one step ahead may secure your victory.
85. There is no such thing as only rising or only falling; opportunities always exist, and your mental price point is crucial—regret is useless.
86. Build a strong body to prepare your heart for the impacts of large fluctuations.
87. Once you buy, you are trapped; once you sell, the price rises. The secret is related to the market makers, as they constantly study the psychology and behavior of retail investors.
88. Trading cryptocurrencies is about trading numbers; never establish a relationship with money; if you do, you will surely lose.
89. Market changes are very fast; fluctuations within 10 minutes are normal, and you must maintain a balanced mindset.
90. Can't withstand fear, can't gain much; courage, courage, still courage.
91. Patience in waiting for large-scale positions to become true blue-chip stocks is the real mindset.
92. The desire to make quick money is a major taboo for crypto participants.
93. Remember that the power of compound interest is the greatest.
94. The definition of a retail investor is someone who chases highs and sells on lows, who believes in rumors, and has a restless mindset.
95. Listen less to tips and think more critically.
96. You cannot estimate market conditions based on your financial resources, nor should your decision be affected by profit or loss; in this industry, what you hold is insignificant.
97. You may be great in business, but there is no necessary connection in the crypto world.
98. Experience can cultivate inspiration, but inspiration cannot be completely relied on experience.
99. There is no free lunch; you must set a range of losses you can bear.
Learn to release the burdens of your heart; do not rejoice in profits or be disheartened by losses. Actively set aside your phone and computer, reduce excessive attention to market conditions, and face each trading challenge with a calm and determined heart.
