Let me start with a harsh truth:
In the past decade, I've seen too many people — some boast how great their skills are after making money, while others lose their entire capital and still feel the market has wronged them. In fact, there are no secrets; the market maker's tricks are just a few. Those who understand get rich quietly, while those who don't keep paying tuition fees. Today, I'm sharing six iron rules gained through real money experience; if you can't remember them all, mastering three will allow you to outperform 90% of the retail investors.
Iron Rule One: Rapid rise, slow fall? Don't rush to cut losses!
Phenomenon: The coin price suddenly surges, then slowly grinds down with small bearish candles, as the account's floating profit shrinks day by day, making one anxious to 'cash out'.
Truth: There is a 90% chance that the market maker is 'washing the plate' — intentionally letting prices drop slowly to shake out those who can't hold on, in order to clear the market for a subsequent rise.
My lesson: In 2019, after ETH soared from $100 to $300 and entered a sideways trend, I stared at the K-line dropping $5 daily, growing more anxious, nearly cutting losses at $280. Ultimately, it shot up to $1400! I later realized that the real danger is that 'sudden drop after a sharp rise' (for example, a 30% drop in one day), that is the signal for the market maker to offload.
Mnemonic: Slow fall after a rapid rise = market maker is washing; hold on and don't move; a sharp drop after a surge = market maker is fleeing; hurry to withdraw!
Iron Rule Two: 'Snail rebound' after a waterfall? Never catch the bottom!
Phenomenon: The coin price suddenly plummets (for example, halving in one day), then continuously rises slowly with small bullish candles, and someone shouts 'it's the bottom' and jumps in to catch the bottom.
Truth: This is the market maker 'offloading' — using slight rebounds to create the illusion of 'it's bottomed out', enticing retail investors to take over.
My lesson: In 2021, when Dogecoin collapsed from $0.7 to $0.15, several friends of mine jumped in when it rebounded to $0.2, thinking 'after an 80% drop, it must be the bottom.' As a result, after rebounding to $0.25, it fell straight back to $0.05, trapping them completely.
Mnemonic: Slow rebound after a waterfall = market maker is fishing, don't reach out; a true bottom will have continuous bullish volume candles, not a 'fake dead' rebound.
Iron Rule Three: If there is heavy volume at high levels, it can still be played, but dead volume means you should run!
Phenomenon: Prices rise very high, but trading volume either continues to expand or suddenly shrinks to an extremely low level.
Truth: A surge in volume indicates that funds are still at play (there may be new highs), but when the high-level trading volume looks like 'a stagnant pool' (consecutive days of shrinking volume), it basically means the market maker has withdrawn, and what follows is free fall.
My lesson: In 2022, when LUNA coin rose to $119, the trading volume decreased day by day for the previous three days. I hesitated to sell, and then that very night, the price began to crash, going to zero a week later. I later understood: no volume at high levels = no one taking over = a sign of the market maker's exit.
Mnemonic: Heavy volume at high levels = funds are still active (participate cautiously); dead volume at high levels = market maker is retreating (liquidate immediately).
Iron Rule Four: Sudden explosion in volume at the bottom? Don't get too excited!
Phenomenon: When the coin price drops to a painful level (for example, down 80%), suddenly the trading volume surges, and the price rises, with someone shouting 'the main force has entered the market.'
Truth: It may be the market maker testing the waters (or offloading), the real bottom requires a combination of 'shrinking volume and continuous expanding volume' — the market maker can't buy everything at once; they must grind repeatedly.
My experience: When ETH suddenly surged in volume to $880 last year, I didn't act; after it consolidated in low volume for two weeks, it then gently expanded for three consecutive days, so I entered at $1200, and it doubled in three months.
Mnemonic: A single day of explosive volume at the bottom = it might be a trap; bottom with shrinking volume and continuous expanding volume = a real opportunity (observe for a few more days).
Iron Rule Five: Don't blindly guess prices, trading volume is the 'mirror'!
Phenomenon: Many people chase highs and cut losses based on K-line charts, shouting 'the bull market is here' when prices rise, and crying 'the bear market is here' when prices fall.
Truth: K-lines are just the surface; trading volume is the 'real action' of the market maker — price is driven by emotion like a 'dog', while trading volume is the 'person' holding the leash.
My lesson: In the 2023 altcoin market, many people jumped in when they saw a coin rise by 30%, only for the volume to shrink the next day and then plummet. Later I realized: price can deceive, but volume won't — a rise without volume support is all a bubble.
Mnemonic: Watching K-lines is not as good as watching the trading volume; volume precedes price (shrinking volume = danger, expanding volume = opportunity).
Iron Rule Six: The highest level is 'nothing' — no attachment, no greed, no fear!
Phenomenon: Newbies always want to 'catch every opportunity', while veterans fear 'missing the next bull market', resulting in increasing losses with every trade.
Truth: Trading coins is essentially a game of human nature — attachment makes it hard to stay in cash, greed leads to chasing highs and getting stuck, fear makes you cut losses at the floor. The truly top players understand the art of 'waiting.'
My epiphany: In the 2023 bear market, I managed to stay in cash for three months, watching others lose 90%, and I avoided the worst phase. Later I understood: 'nothing' is not negative, but is clarity — wait when there is no opportunity, and act when there is.
Mnemonic: No attachment = dare to stay in cash; no greed = do not chase highs; no fear = dare to catch the bottom (when the mindset is stable, operations will naturally be correct).
Lastly, let me be blunt:
If I had understood just one of these six iron rules back in the day, I would have lost at least $500,000 less; if I had mastered three, I might have achieved financial freedom three years ago. I'm sharing this now not to prove how great I am, but to tell you: there are no 'geniuses' in the coin circle, only 'awakened people'.
People are more important than anything! If you are still wandering in confusion, you might as well take a look at how Youge helps you seize every wave of the bull market.
