General Rules of the Cryptocurrency Market! Newbies should remember that avoiding pitfalls in the Bitcoin market requires understanding these rules:
The cryptocurrency market operates mainly on a time basis concerning East-West interactions, with market movements occurring both during the day and at night, primarily aligned with Western time, between 21:30 and 7:30 Beijing time. Major price increases typically happen in the early morning, so a qualified trader should go to bed before 20:00 and focus on trading from 20:00 to 8:00.
1. If there is a continuous drop during the day in China, you should definitely consider bottom fishing; foreign traders will push the prices up at 21:30 in the evening.
2. If there is a significant rise during the day, you should definitely not chase the highs, as prices will likely drop back in the evening.
3. The key signal for buying and selling is the 'pinbar'; the deeper it goes, the stronger the buy and sell signal.
4. Major meetings or good news will usually lead to a price increase, but once the news settles, prices will drop.
5. If group discussions are overly enthusiastic about a coin that everyone is hyping, beware; you might get trapped, consider taking the opposite action. If a coin is extremely hot, you can short it immediately.
6. If a group member recommends something that you find uninteresting, it’s likely to take off; when in doubt, you might as well try a small amount.
7. When you are heavily invested in a position, you are bound to get liquidated; why? Because you will be on the exchange's liquidation list.
8. After your stop loss on a short position is triggered, the price is sure to drop; if they don't trick you out or push you to liquidation, how would it drop? For example, TRB.
9. Just when you're about to break even, and you're so close, the rebound suddenly stops; how could they let you close your position and escape?
10. When you take profits, the price will rally; if you don’t exit, how can the price rise? The position is too heavy.
11. When you feel excited, a sudden drop may occur as expected; your excitement is also a trap set by the market makers.
12. When you find yourself broke, every project seems to be rising, making you FOMO, prompting you to enter the market quickly. So you understand, the market is manipulated over 80% of the time; besides managing your position, you must also act decisively, and be clear that before the market makers operate, you should not enter; once you do, the exchange is the butcher, and you are the fish. Trading is about patience, composure, and timing, and if anyone has different opinions, feel free to discuss among yourselves. Thank you!