In 3 years, I turned a principal of 100,000 into a profit of 70 million, without relying on insider information or betting on a one-sided bull market, solely relying on a solid trading strategy, maintaining it for over 1000 trading days.
Trading cryptocurrencies is never a shortcut to overnight wealth; it resembles a journey of leveling up through battling monsters: you need to refine your skills in watching and trading, while also nurturing your mindset in facing price fluctuations. The following 6 insights, gained through real money, are hoped to help friends still exploring the cryptocurrency world.
1. After a sharp rise, a slow drop, don’t rush to cut losses — it is likely a major player washing out. If the market suddenly spikes and then slowly declines, don’t panic and stop loss; this is mostly a major player’s action to shake off indecisive retail investors; a true top signal is a violent spike followed by a waterfall decline, which is the major player’s final harvest.
2. After a sharp drop, a slow rise, don't blindly bottom fish — it may be a trap. If the market rebounds slowly after a sharp decline, don’t rush to enter; this kind of gradual rise is often a method for major players to offload their positions, creating an illusion for retail investors that the price has bottomed out. Once retail investors take over, they will be met with the final dangerous blow.
3. There’s no need to panic when there’s volume at the top; lack of volume is the real risk. High volume at a peak doesn’t necessarily mean you should exit immediately; there may still be a second wave in the market; what you should truly be cautious of is a sudden decrease in volume at a high point, just like the market turning into a ghost town where no one is willing to take over, which is a precursor to a crash.
4. Don’t act impulsively with volume at the bottom; sustained volume is the real opportunity. A single volume spike at the bottom could likely be a false move by the major player, so don’t follow the trend to enter; only after a period of low volume consolidation, if there is a sustained gentle volume increase, is it a true signal of capital building positions, making entry at this time more favorable.
5. Understanding volume means understanding market sentiment. The candlestick chart is the result of the market, while volume represents the underlying logic. Shrinking volume indicates low market participation, with no one willing to trade; explosive volume represents a significant influx of capital, with intense long and short battles. True market sentiment is hidden within the volume, and understanding it allows you to hit the right rhythm.
6. The highest realm of trading cryptocurrencies is the principle of 'nothingness.' No obsession, not stubbornly bullish or bearish; if the market should be short, then short; if it should be long, then long; no greed, don’t chase after wildly rising coins, take profits when it’s good, and don’t be greedy for the last point; no panic, don’t lose composure when the market drops, as long as the logic remains, be bold to take positions. Achieving this 'three no's' is considered crossing the threshold of a novice trader and moving closer to true expertise.
The market is never wrong; what is wrong is our judgment and operation regarding the market. The real experts in the cryptocurrency world are not those who can accurately predict the future, but those who can control risks and protect their capital amidst price fluctuations, surviving steadily until the next market cycle.
Brother K has also come a long way, providing fans with some necessary experiences, allowing you all to survive in the market for a long time. Follow Brother K's pace and take you through this bull market!!!
