Trading cryptocurrencies is not about getting rich overnight, but about leveling up: honing skills and refining mindset.
Here are 6 insights gained from real experiences, hoping to help friends still on the journey:
1. Rapid rise and slow decline = the market is accumulating
After a sudden spike, if it gradually declines, don't rush to sell; that's likely just a shakeout. A true peak will see a ‘sharp rise + waterfall’, which is the final harvest.
2. Rapid decline and slow rise = the market is distributing
After a sharp drop, if it slowly rebounds, don't rush to buy the dip. That often signifies the last blow; the fantasy of ‘hitting the bottom’ is the most dangerous.
3. High volume at the top ≠ run immediately; low volume is when to run
A spike in volume at high levels may indicate a second wave of market activity. What is truly frightening is a sudden lack of volume, resembling a ghost town; that is a sign of an impending crash.
4. High volume at the bottom ≠ immediate surge; continuous volume is reliable
A single volume spike could be a false signal. If there is a sustained gentle increase in volume after a period of low volume, that is a true signal for building positions.
5. Understanding volume helps to understand sentiment
Candlestick patterns are results; volume tells the underlying story. Decreased volume means no one is participating, while a volume explosion indicates capital is entering the market. Volume holds the true mindset of the market.
6. Cultivate to ‘nothing’
- No attachment: be willing to stay in cash when needed;
- No greed: avoid chasing after wildly increasing cryptocurrencies;
- No panic: be ready to reasonably absorb during declines.
Achieving ‘nothing’ is what makes a true expert.
In summary:
The market is always right; the only mistake is oneself.
True experts in the cryptocurrency world are not those who can predict the future, but those who can survive to see it.