There is an old saying in the cryptocurrency circle: 'Retail investors trade coins by looking at K-lines, while dealers trade coins by looking at retail investors.' This is absolutely true. I spent three years and thousands of trades verifying this, and only then did I grasp the dealer's tactics - in fact, their weakness lies in 'volume' and 'price.' Today, I am sharing this 90% win rate strategy for dealing with dealers; understanding it could save you at least $500,000 in losses.
1. Dealers are not gods; their weakness is right there.
When I first entered the market, I always thought the dealer could cover the sky with one hand - lots of funds, quick information, and a strong team. It wasn't until I blew up three times in 2018 that I realized: what the dealer fears most is not retail investors making money, but retail investors not following the rules.
The core routine of the dealer consists of four steps: accumulation, washout, rise, and distribution. The first two steps are the most exhausting. Last year, a fan bought a certain altcoin, couldn't withstand the washout, and sold at a loss, only to see the dealer's price rise threefold half a month later, making him slap his thigh in frustration. In fact, at that time, just looking at 'volume' would have made it clear: when the price is sideways and trading volume suddenly increases, the dealer is secretly accumulating shares. Holding on during this time is victory.
Remember, dealer data does not lie. 'Volume × Price = Funds.' If a coin suddenly surges in volume, it indicates that the dealer is genuinely investing real money; if it drops with decreasing volume, it's likely a washout - just like fishing, reeling in the line to scare away the indecisive fish.
2. Are retail investors always being cut? Because you fell into these two pits.
'Buy and it drops, sell and it rises' is inevitable.
The dealer supports the team, incurs costs; why would they take you to make money? Last year, when BTC was sideways at $40,000, 80% of people in my fan group were shouting 'it's going to rise,' but the dealer directly smashed it down to $35,000, scaring half of them to sell at a loss, only for it to shoot up to $48,000 with a big bullish candle - this is the routine: washing out when retail investors cluster to buy, and raising the price after retail investors sell.
To break out of this curse, you need to be 'one of the few.' Last year, I focused on a certain L2 token and watched as retail investors were washed out (trading volume shrank to the extreme). I decisively entered the market and made 4 times my investment in three months. The key is simple: don't rush to sell when others are panicking, and don't rush to buy when others are greedy.
Don't catch the bottom at 'halfway up the mountain.'
Many people think 'the more it falls, the more it is the bottom,' but they end up catching at low point 1, watching as low point 2 creates a new low, and then selling at a loss to chase after low point 3 - this is a typical case of 'catching a flying knife with empty hands.' The real bottom should be viewed like this:
After the appearance of low point 1, if low point 2 creates a new low → it indicates that the bottom has not been reached.
Low point 3 does not create a new low → the dealer starts secretly accumulating shares.
Low point 4 stands firm above low point 3 → bottom confirmation.
Last year, when ETH dropped to $1800, I waited for low point 4 to confirm before entering, making back my previous losses all at once. Remember, the bottom is 'waited' out, not guessed.
3. Three practical skills to eat meat with the dealer.
When choosing coins, look for 'dealer stock genes.'
Some dealers are fierce (like a sudden spike and drop), while others are relatively mild (oscillating upward). I specifically choose the latter, like a certain DeFi token I dealt with last year. The dealer's washout never exceeded 20%, and during the rise, it was steady and solid. Such coins can be held. How to judge? Look at historical K-lines: the washout range before the rise and changes in trading volume indicate that the dealer is likely to repeat old tactics.
'Hitching a ride' requires these two signals.
Before the dealer raises the price, there is a flaw: when the price breaks through a key resistance level, the trading volume suddenly increases (more than 3 times the usual). Last year, when SOL broke through $100, I saw the volume increase decisively and followed in, rising to $180 in a month. Another signal is the 'spike' - a sudden drop of 5%-10% before the rise, followed by a quick rebound. This is the dealer testing retail investor reactions. In such situations, be bold and get in, just like a slingshot pulled tight shoots further.
Exiting should be a step ahead of the dealer.
When the dealer distributes chips, it's very discreet, but there is a signal that can't be hidden: the price hits a new high, but the trading volume keeps decreasing (divergence). Last year, a certain meme coin rose to $0.5, the price reached a new high but the trading volume halved. I decisively liquidated my position, and three days later it dropped back to $0.2. Remember, the dealer always 'draws a pie' before running away, so don't be greedy at this time.
Finally, let me say something heartfelt.
Following the dealer is not about following dealer signals; it's about understanding the dealer's capital movements. Over the past decade, I grew from $80,000 to $10 million, relying not on luck, but on focusing on 'volume' and 'price structure,' lurking when the dealer is accumulating, following in when the dealer is raising the price, and running away when the dealer is distributing.
Remember, the true masters in the cryptocurrency circle are like wolves watching their prey, patiently waiting for the best moment - when the opportunity comes, they bite and don't let go; when the risk comes, they turn and leave without hesitation.