When I met Old Zhou, he had just handed the keys to his third apartment in Harbin to his family. This 42-year-old man from Heilongjiang had been trading for 7 years and turned a 400,000 principal into 50 million using the most 'foolish' methods - without insider information, not relying on chasing highs and cutting losses, just adhering to a few iron rules he summarized.
Today, I’m sharing his experience with everyone; understanding it is much more useful than learning a bunch of indicators.
One, 'quick rise, slow drop': don’t panic, this is big money 'buying secretly'.
In 2018, Old Zhou first made money using this trick: at that time, ETH rose from 200U to 300U (a quick rise), and during the pullback, it slowly fell to 260U (a slow drop). He watched the candlestick for 3 days and found that 'the trading volume kept decreasing during the drop' - this is what he calls the 'accumulation signal'.
Later, ETH rose all the way to 800U. He often said: “How would the main force buy without making noise? A sharp rise attracts attention, while a slow decline is to prevent chips from being picked up by others. During this time, don’t be scared off by small pullbacks.”
Two, 'quick drop, slow rise': run fast, the big player is 'quietly selling'.
In 2021, there was a meme coin that plummeted from 5U to 3U (a quick drop), then it took half a month to climb back to 3.5U (a slow rise). Old Zhou saw this and advised people in the group to run quickly.
“It’s like a market closing down - the stall owner quickly lowers the price to clear out the stock (quick drop), and the remaining goods that no one wants can only be slowly raised in price to deceive retail investors (slow rise).” Sure enough, that coin later fell to 0.3U, trapping many people inside.
Three, observe volume at the top: new highs without volume are all tricks.
Old Zhou never chases 'new highs without volume'. When BTC soared to 69,000 U in 2022, he opened the trading volume and saw - it was 40% less than at the previous high, so he cleared half of his position that day.
“A top with increased volume may still rise (with funds taking over), but a new high without volume is like a stage without an audience; it can't sing for long.” Later, when BTC dropped back to 30,000 U, he avoided a disaster with this trick.
Four, observe volume at the bottom: a single spike in volume is bait, sustained volume is the real opportunity.
In 2023, when BTC was at 16,000 U, one day it suddenly surged 10% with high volume. Everyone in the group shouted 'buy the dip', but Old Zhou remained still.
“A single spike in volume at the bottom may be the main force testing the waters, just like fishing with a little bait first.” It wasn't until there were three consecutive days of increased volume that he slowly added to his position - later BTC rose to 40,000 U, and he made 1.2 million from this wave.
Five, trading cryptocurrencies is ultimately about 'trading people's hearts'.
Old Zhou's phone never has complex indicators, only two charts: one records 'long-short ratio on exchanges', and the other records 'hot search frequency on Weibo'.
“When even the market aunties are chatting about 'getting rich by buying coins' and the long-short ratio is 9:1, it’s time to prepare to run; when everyone is cursing 'the crypto world is a scam' and the long-short ratio is 1:9, the opportunity is coming soon.” He said K-lines are just the 'electrocardiogram' of people's hearts, understanding emotions is more important than understanding indicators.
Six, 'holding cash' is the most powerful operation.
Old Zhou spends half of his time each year holding cash. In the first half of 2024, he watched meme coins fall endlessly but managed to resist opening any trades until the trend became clear in the second half.
“There are plenty of opportunities in the crypto world, but the capital is limited. Those who can hold cash for 3 months can catch opportunities that can earn for 3 years.” He often said that true experts are not the ones who 'make money every day', but those who 'dare to earn when they should earn, and can hold back when they shouldn’t act.'
Finally, Old Zhou said: 'My method is foolish, but it's effective. The biggest pitfall in the crypto world is not not understanding the technology, but always thinking of being 'smart' while not grasping the most basic relationships between volume and price, and market sentiment.'
Now he still watches the market for 4 hours every day, walks with his family in the evening, and the numbers in his account fluctuate, but he always has a smile on his face - perhaps this is the best state of trading: not being led by the market, nor being pushed by desire.
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