Post-90s retail investor from Sichuan, after 7 years grew from 200,000 to tens of millions, relying solely on a basic strategy
I am 34 years old this year, from Chengdu, have a small three-bedroom apartment, a car, and have been trading cryptocurrencies for 7 years. I grew my initial capital of 200,000 to tens of millions today, without any benefactor's help or insider information, solely relying on a basic method.
I am now willing to share my experience from these 2555 days for free.
The following 6 survival rules in the cryptocurrency space, if you understand one, you can avoid detours; if you apply three, you are already ahead of the majority:
First rule: Rapid rises and slow falls often indicate large players accumulating
Don't rush to take profits. A rapid rise followed by a slow decline does not mean it's at the top; it indicates that there are players washing out the market. The most concerning situation is a direct crash after a big bullish candle, that is a trap market.
Second rule: Rapid falls and slow rises indicate that main funds are retreating
A sudden crash followed by a sluggish rise is not a bottom; it is the residual heat after selling. Don’t think “it has dropped so much already, it won’t drop again”; bottoms can refresh indefinitely.
Third rule: High volume at the top does not necessarily mean a drop, low volume is truly dangerous
If it rises to the top with volume, there may be opportunities to continue; but if it reaches a high point with low volume, that is a dangerous signal, indicating that no one dares to chase anymore.
Fourth rule: Volume at the bottom is fine, but it must be continuous
A day or two of increased volume is meaningless; it’s just bait. The key is to have several continuous days of volume increase, preferably after a long period of low volume and then suddenly expanding; that is reliable.
Fifth rule: Watching the market is not just about price; it's crucial to watch the sentiment
You might think you are monitoring candlesticks, but you are actually betting on expectations. Trading volume is the thermometer of consensus, while price is just the final outcome.
Sixth rule: The ability to short is the highest realm
Be able to short without blindly entering; resist the urge to chase after rises; withstand drops without easily cutting losses. This is not about being passive; it’s about restraint and having a big-picture perspective.
The cryptocurrency space is never short of opportunities; what it lacks are those who can wait, dare to hold, and can make judgments. And what truly leads you out of the fog is a veteran willing to teach you the rhythm of market analysis and the logic behind the market.
