After years of struggle in the cryptocurrency market, I went from losing everything to earning tens of millions annually, not relying on insider information or catching a super bull market, but through a seemingly simple method practiced repeatedly.
In the 365 days of a year, I focus on one thing — treating trading as a game of leveling up. Today, I share these 6 iron rules of the cryptocurrency market without reservation. Mastering one could save you a hundred thousand; mastering three is enough to surpass 90% of retail investors in the cryptocurrency market.
1. Fast rises and slow declines may indicate big players accumulating.
When you see a cryptocurrency rising rapidly like a rocket but falling extremely slowly, it is very likely that the big player is accumulating.
This rapid rise followed by a slow fall is often a method of washing out by the big players; do not rush to sell, as the true top is not like this.
The true signal of a peak is when, after a surge in volume, the price plummets like a waterfall; this is a typical manifestation of big players enticing retail investors before unloading.
2. Fast declines and slow rises, beware of the last blow.
On the contrary, if a cryptocurrency falls rapidly like free fall, but rises slowly and laboriously like a snail, it could be that the big player is trying to slowly recover after encountering a flash crash.
But this is definitely not a good time to pick up bargains; rather, it is very likely the last blow. In such cases, market sentiment is often extremely pessimistic, with continued outflows of funds, and even a brief rebound is unlikely to change the downward trend.
3. Increased volume at the top does not necessarily signify the end; low volume is the most dangerous.
Increased volume at the top does not necessarily mean the market is over. Sometimes, there is still volume at high levels, indicating significant divergence between bulls and bears, and there may still be a chance for another surge.
However, when a state of silence with no volume appears at high levels, that is truly the eve of a crash.
At this time, market trading is light, lacking funds to push, and once the trend reverses, prices will plummet.
4. Increased volume at the bottom needs to be discerned; sustained volume is reliable.
When the price of a cryptocurrency is at the bottom, it is important to carefully discern the phenomenon of increased volume. An increase in volume could be a bait set by the big player to attract investors.
Only a continuous increase in volume over several days, especially after experiencing a period of low volume fluctuations, is a true signal for building positions.
5. Trading cryptocurrencies is essentially trading emotions; trading volume hides the emotional code.
In the cryptocurrency market, trading is largely about speculating on emotions. Trading volume is the thermometer of market sentiment. K-lines are merely the presentation of trading results; the volume truly reflects the emotional changes of market participants.
When market volume is exhausted, it means no one is willing to participate in trading, and the market is quiet, making it hard for prices to improve. Conversely, when volume surges, it indicates a large influx of funds, the market sentiment is high, and prices often rise accordingly.
6. 'Nothing' is the ultimate realm of trading.
No obsession means being brave enough to stay in cash, not being tempted by short-term market fluctuations, and being able to control oneself and wait patiently when there are no suitable opportunities.
No greed, do not blindly chase highs, do not let the market's craziness cloud your judgment, and avoid becoming the last one to take the bag.
No fear; when the market is in panic and a true bottom opportunity arises, dare to buy the dip. This is not a passive trading style but strictly adhering to trading discipline while maintaining a rational mindset.
The cryptocurrency market never lacks opportunities; what is lacking are investors who can control themselves, stabilize their mindset, and see the situation clearly. I hope these 6 iron rules can help everyone take fewer detours and gain more on their investment journey in the cryptocurrency market.
Blindly going solo will never bring opportunities. Follow Super Brother, and I will guide you to explore tenfold potential coins! Top-tier resources!
