Fans often ask, 'Can you get rich overnight?'. A friend of mine went from 300,000 to 10 million, having once lost down to just 70,000. His experience made me understand that while there may be opportunities for a comeback in the cryptocurrency world, it is never about 'easy money' and requires a respect for risks and an understanding of the rules. Today, I will share six of his insights, which are merely experience sharing.

1. Six Practical Insights: Find the Rhythm from Market Rules

1. Don't rush to cut losses during a big drop in the morning, and be cautious about chasing highs during a sudden rise at the end of the day.

A big drop in the morning is often an overreaction to negative news from the previous night, and you can observe for subsequent recovery opportunities; a sudden rise at the end of the day may be a test by the main players or an attempt to lure more buyers, with a high probability of a low open the next day for accumulation, so don't blindly follow the trend.

2. Volume is the 'barometer'; understand it before taking action. If volume continues to decrease while rising, it indicates strong control by main players, and the trend may continue; if volume decreases while falling, it may indicate that panic selling is not yet exhausted, and further adjustments may occur.

3. Sector trends have stages; don’t be greedy about the tail end.

Most sector trends will go through a 'five-wave structure': the first wave attracts followers, the second wave consolidates, the third wave is the main rise (largest increase), the fourth wave shows divergence, and the fifth wave pulls up for selling. However, if you notice the leading stocks stagnating or showing weakness in recovery, you should be wary of a peak.

4. The linkage signal between Bitcoin and altcoins.

In a rapid rise at the top of Bitcoin, if a certain type of altcoin suddenly surges, it may signal a transfer of funds, so be cautious of a Bitcoin reversal; conversely, if leading coins stop falling and start to rise, the index often follows suit, which can serve as a trend reference.

5. Specialization is more important than versatility.

Newcomers shouldn't be greedy; first, master one method (such as short-term or swing trading), and only expand after becoming proficient. Frequently switching methods can lead to pitfalls in each approach.

6. Use different tools for different market conditions.

Market trends can be categorized into three types:

◦ In an uptrend, technical indicators have a relatively high success rate, so you can go with the trend;

◦ In a sideways market, using support and resistance levels for high sell and low buy is more effective;

◦ In a downtrend, most indicators may fail, so it’s safer to observe more and act less.

Markets change rapidly, and I will shout out at the first sign of action! If you want to secure your positions and catch these key waves, stay tuned and don’t miss the next opportunity! 💪💪💪