He has been in the crypto circle for over four years. In the first three years, he lost over 700,000 from a capital of 1 million! His family was almost on the brink of collapse, and he didn’t leave home for nearly 2 months. His wife kept arguing with him about divorce, but fortunately, he was determined at that time, believing he could make it back! In the fourth year, he found me and wanted to turn around with the remaining 300,000, and then he started to study cryptocurrency trading seriously with me!
Later, I swore to my wife that if I didn’t make back the money, there would be consequences! ... After that, I devoted myself wholeheartedly to learning, summarizing the mistakes I made before, identifying the points of operational errors, observing the thoughts and techniques of those big names in the crypto circle, and finally started to stabilize; turning losses into gains was truly not easy!
The account began to turn green, combining short and medium-term operations; it’s no longer blind entry and exit but rather a well-planned account. The combination of short and medium-term is the best for compound interest! Later, I turned the remaining 300,000 into over 50 million! So today, I also want to share some of my summarized experiences and techniques with everyone, hoping it helps.
The crypto circle has too many seemingly simple yet intricately profound maxims. These are experiences that seasoned investors have exchanged for real money. Whether you are a rookie just starting or an experienced player, thoroughly understand these maxims and apply them in practice to avoid years of detours.
1. 9 core operational maxims: Wait for the right moment to act.
1. Buy sideways and buy the pit, don’t buy the vertical; the selling point is when the market is boiling.
Meaning: You can buy during sideways consolidation, buy the 'pit' formed after a drop (low price), but don’t chase the 'vertical rise' that happens quickly; the sell point is when the market is the most excited, and everyone is shouting for a rise.
Practical case: In 2024, BTC traded sideways between 38,000 and 42,000 for a month (sideways period), stabilizing the buying cost; later, it dropped to 35,000 forming a 'pit', which was also an excellent buying point. When my social circle is filled with news of 'Bitcoin breaking 100,000' (in the boiling point), that is the signal for phased selling.
2. Continuous small rises are true rises; continuous large rises mean it’s time to exit.
Meaning: A slow rise of 2%-5% daily indicates steady capital entering, representing real market activity; continuous rises of over 10% for more than 3 days often signal short-term speculation, which may correct at any time.
Note: ETH had a slow rise for 10 consecutive days in November 2023, from 1800 to 2200, and later surged to 2800; meanwhile, a certain altcoin surged 50% for 3 consecutive days, then plummeted 40% on the 4th day, trapping those who chased highs.
3. A sharp rise requires a pullback; don't make large purchases without digging a deep pit.
Meaning: A sudden rise of over 20% ('surge') is likely to correct (pull back); for coins that haven't undergone deep declines (no deep pit), don’t make heavy purchases.
Operation: If BTC rises from 50,000 to 60,000 (sharp rise), don’t rush to buy; wait for a pullback to around 55,000 before buying. Coins that stay high without dropping, like a certain platform coin that has long been around 20 dollars and hasn’t dropped below 15 dollars (no deep pit), are not worth large investments.
4. Main rises accelerating means a peak is near; sell quickly during sharp drops and sell slowly during gradual rises.
Meaning: The market enters a rapid rise period (main rise acceleration), for example, rising over 10% daily indicates it’s nearing the top; a sudden sharp drop (sharp decline) means you should sell quickly, while a gradual rise can be sold in batches.
Example: SOL during its main rise in 2021 accelerated from 100 dollars to 250 dollars (150% increase in 3 days), then plummeted to 100 dollars; meanwhile, BTC rose slowly from 30,000 to 50,000, selling 10% of the position each time it rose 5%, earning 20% more than selling all at once.
5. A sharp drop with low volume is intimidation; a gradual drop with increasing volume means it's time to withdraw.
Meaning: A sudden large drop without an increase in volume (sharp drop with low volume) indicates market makers are trying to scare retail investors into cutting losses; a slow decline with increasing volume (gradual drop with increased volume) indicates that large funds are fleeing, and you must sell quickly.
Judgment: Look at the volume bars below the K-line. If there's a sharp drop and the bars are similar to usual (low volume), don't be afraid; if there's a gradual drop and the bars are getting thicker (increased volume), decisively exit.
6. When the price breaks through the lifeline, don’t hesitate to swing trade.
Meaning: The 'lifeline' usually refers to the 60-day moving average. If the price stabilizes above the 60-day line, it indicates a trend reversal, and you can enter for swing trading.
Usage: Open the K-line chart adjusted to daily lines, add the 60-day moving average indicator. When BTC breaks and stabilizes above the 60-day moving average for more than 3 days, you can start buying in phases and hold until it breaks below the 60-day moving average again to sell.
7. Seriously observe daily and monthly lines, build positions with the main force.
Meaning: Use daily lines to observe short-term trends and monthly lines for long-term trends, combining both to judge the main force's direction.
Technique: If the daily line is rising but the monthly line is still falling, it may indicate a short-term rebound; when the monthly line starts to rise and the daily line is also rising, it indicates that the main force is increasing positions, making it safer to build positions at this time.
8. If the price rises without volume, don’t stand guard against the main force's bait.
Meaning: Price rises but the volume doesn't follow (low-volume rise), indicating a false rally by the market makers (baiting buyers). Don't chase it, or you'll be stuck at high positions.
Warning: A certain altcoin rose from 1 dollar to 1.5 dollars, but the volume was even smaller than usual. It then fell back to 0.3 dollars, leaving high buyers trapped.
9. Low volume new lows indicate a bottom; increased volume recovery means it's time to enter.
Meaning: When the price hits a new low but the volume shrinks (low-volume new low), it indicates that selling pressure has diminished, which may signal a bottom. Subsequently, if the volume increases and the price rises (increased volume recovery), that’s a signal to enter.
Case: In 2022, BTC fell to 16,000 (a new low), with volume much smaller than during previous declines (low volume); later, the volume increased and it rose to 30,000, which was a perfect time to enter.
2. K-line maxims in the crypto circle: Understand K-lines to avoid pitfalls.
The K-line is the 'weather vane' for judging rises and falls; these 5 maxims can help you quickly seize buy and sell signals:
1. Don’t sell during highs, don’t buy during crashes, and don’t trade during sideways consolidation.
Interpretation: Don’t sell if it hasn’t reached the key resistance level (high), and don’t buy if it hasn’t reached the key support level (crash). During sideways markets, watch more and act less. For instance, if BTC's resistance level is at 40,000, hold if it hasn’t reached that; if the support level is at 35,000, don’t buy if it hasn’t dropped to that.
2. Buy bearish, don’t buy bullish; sell bullish, don’t sell bearish; going against the market is the mark of a hero.
Interpretation: Buy bearish candles during a drop (buy on pullback), don’t buy bullish candles during a rise (chasing up); sell bullish candles during a rise (sell during the rise), don’t sell bearish candles during a drop (cut losses). For example, if ETH rises 5% with a bullish candle, sell; if it drops 3% with a bearish candle, buy.
3. Wait a bit longer for high and low consolidation.
Interpretation: When trading sideways at high or low levels, don’t rush to act; wait until the breakout direction is clear. Sideways trading at high levels may lead to drops, while at low levels may lead to rises; trading during sideways periods can easily lead to being trapped.
4. If there's a high-level consolidation before a surge, seize the opportunity to sell quickly; if there's a low-level consolidation with a new low, it’s a good time to buy in fully.
Interpretation: A sudden surge after a period of sideways trading at high levels is the last opportunity to escape; while a new low after a period of sideways trading at low levels often indicates a bottom, suitable for heavy buying. For example, in 2021, BTC surged from 60,000 to 69,000 after sideways trading (high-level surge), then plummeted; in 2023, BTC dropped to 15,000 after sideways trading at 16,000 (low-level new low), then rebounded to 40,000.
5. Acknowledge mistakes before acting; it’s better to buy less than to buy more. Invest cautiously!
Interpretation: Think about 'what if it drops' before buying and make a stop-loss plan; it’s better to buy less than to go all in. Beginners are most likely to make the mistake of 'going all in the first buy'; if a drop occurs, there’s no room for maneuver.
These maxims may seem simple, but they incorporate trends, volume, and market sentiment. The key is not to memorize them but to slowly comprehend them through practice: for example, when you see continuous large rises, immediately recall 'leave the market during continuous large rises'; when you see low volume new lows, you know 'increase volume recovery means to enter the market.'
The core of making money in the crypto circle is to use simple rules to combat a complex market, managing greed and fear with discipline. Keep these maxims on your phone; when you don’t understand the market, flip through them, and maybe you can avoid a big pit and seize an opportunity. Remember, seasoned investors don’t avoid mistakes, but they make fewer mistakes because they have turned the maxims into reflexes.
In addition to solid techniques, I strictly adhere to the following 8 ironclad rules:
1. Don’t panic after stopping loss: Trading contracts is about leveraging small amounts; experiencing losses is completely normal. After a stop loss, some might rush to open positions in a frenzy to recover immediately; others rationally pause, entering a calm period. Take advice; if you frequently stop losses, don’t get carried away, immediately stop, settle your thoughts, review strategies for flaws, and rashly opening positions will only dig you deeper.
2. Abandon the desire for quick success: Trading is by no means a means to profit overnight. When encountering losses, don’t turn red with anxiety, heavily investing all in or urgently opening new positions is a common mistake for beginners. Remember, maintaining a stable mindset is key; wealth accumulation relies on steady streams, and being anxious will not help you eat hot tofu. #BTCReturnTo110K
3. Follow the major trend: When a unilateral market arrives, going with the trend is a hard rule! Both beginners and experienced traders easily commit the mistake of trading against the trend, always hoping to 'catch the bottom or peak', only to be severely punished by the market. Understand the market trend, patiently wait for opportunities, and follow the major trend to align with profit rhythms.
4. Grasp the profit-loss ratio: If you want to profit from contracts, the profit-loss ratio is the core 'checkpoint'. If this step is not done well, profits will turn into bubbles. Ensure at least a 2:1 profit-loss ratio before opening a position to let profit space firmly cover the risk of loss; don’t engage in unprofitable trades.
5. Quit frequent trading: Beginners especially need to be cautious! They blindly open positions when the market fluctuates a bit, thinking there's gold everywhere, but in reality, there are mostly traps. If you haven’t developed expert skills, controlling your hands and restraining impulses, trading less and trading wisely is the way to survive.
6. Guard your cognitive boundaries well: only earn money within your understanding; this is a hard rule. If you rashly enter beyond your understanding, it’s like a blind person trying to touch an elephant; the risks are completely uncontrollable. Deepen your knowledge and accumulate experience; 'digging for gold' in familiar fields is the most solid.
7. Eliminate holding positions: Holding positions can be considered a 'death curse' for contracts. A beginner's first lesson is to learn to stop losses! Once the market reverses, holding on with unrealistic hopes makes losses snowball, instantly plunging into a bottomless abyss; timely stop losses are crucial.
8. Don’t be impatient when making profits: don’t let paper profits get to your head; once you do, something will surely go wrong. Arrogant soldiers will fail; at this moment, it’s even more important to stay calm, strictly adhere to trading discipline, and operate according to strategy to stabilize profit gains.
I've seen Bitcoin drop from 30,000 to below 8,000, and I've accompanied altcoins from the verge of zero to a hundred times their value. In the early days, I could stare at the market for three days and nights without sleeping; a 5% rise would race my heart, and a 3% drop would make me want to cut my losses, with account numbers fluctuating like a roller coaster, and I was also swept up by the tide. After three liquidation events, I slowly understood: the red and green fluctuations on the K-line chart are just the greed of a crowd clashing; some rush to seize, while others wait to smash. Buried in the hustle and bustle are the old tricks of human nature.
Now, watching the market feels like watching a chess game in a teahouse; no matter how crazy the rise, I can’t be bothered to calculate profits, and no matter how severe the drop, I won’t clear my position. Those concepts shouting 'disrupting the world' will mostly turn out to be just a rebranded scam when looking back in two years; conversely, those 'garbage' old coins that are scorned endure until the end and show resilience. There’s no myth in the crypto circle; it’s just that some have learned to close their eyes amidst the chaos and wait for the tide to recede to pick up shells — those who rush to shore often get choked the worst.
