I have been watching the market for 10 years and have seen too many beginners rush into the market with the mentality of 'looking for insider information and chasing hot trends', only to end up losing their capital completely. It wasn't until I met the trading master Xiao Yu, who was born after 2000, last year that I became more certain: top trading is never about 'gambling on luck', but about playing 'price + volume' to the extreme!
This young man turned 2000 yuan into 10 million in two years without staying up late to watch the market until dawn. He analyzes just 10 candlestick charts every day and has summed up 4 'rules of price and volume that beginners can learn with their eyes closed'. Now his monthly earnings are stable (those who understand know that it's 100 times better than blindly struggling).
The market is mostly in a volatile situation now (for example, BTC is swaying in the range of 100,000 - 110,000), and there are rumors everywhere; today it says "it will rise", and tomorrow it says "it will fall". The only reliable things are: price trends and trading volume; these two are built on real money and cannot deceive people!
I combined my 10 years of practical experience to break down these 4 rules into "plain language"; newbies can practice according to it to avoid 80% of the pitfalls:
After a rapid rise, horizontal consolidation = The dealer is "quietly accumulating goods", don't sell blindly! I've seen too many people panic and sell as soon as the price rises by 10%, only to find it rises another 20% afterward, slapping their thighs! Remember: if after a rapid rise, the price does not drop but oscillates within a small range and the trading volume does not collapse, this does not mean "it's not moving up anymore"; it means the dealer is accumulating (secretly stocking up). Previously, ETH consolidated for a week after surging from 3800 to 4000; I advised newbies to hold on, and sure enough, it rose again by 15%—this operation was a definite win!
After a sharp drop, there is a rebound = The dealer is "quietly unloading goods", don't chase blindly! Who hasn't encountered the situation where "the price drops by 5% and then rebounds by 3%"? Newbies see "it's rebounding" and rush in, only to get trapped as soon as they buy! Let me tell you: the weak rebound after a sharp drop is likely the dealer unloading goods. It seems like "picking up cheap", but in reality, it's "handing over the goods"—I've fallen into this pit when I was younger; don't step into it again!
A volume spike at the top isn't scary; it's the shrinking volume that is the "thunder"! When the price reaches a high point and the trading volume is still large, it means there is still capital entering the market, no need to panic; but if the volume suddenly shrinks at the high point (more than half less than before), run quickly! This means "the upward momentum is gone". If you don't leave, you will be cut—last year I relied on this trick to withdraw timely when BTC shrank at the 110,000 high, avoiding the subsequent correction, which was very sweet!
At the bottom, watch for "continuous increasing volume", don't take a single day's volume seriously! When the price drops to a low point, one day's volume doesn't count (it may be a false move); only when there are 3 consecutive days of increasing volume is it real buying! Previously, when BTC dropped to 102,000, there was continuous increasing volume for 2 days, and I told newbies to wait; after confirming the volume on the 3rd day, they entered, and sure enough, it rebounded—trading should be "steady"; don't think about "buying at the lowest point"; buying at a "safe point" is what matters!
Xiao Yu said, "The price of coins is a mirror of people's hearts, and trading volume is the consensus of real money"; I wholeheartedly agree! The market has long passed the stage where "listening to rumors can make money". Even if altcoin hotspots are lively, they are not as reliable as the volume and price signals of mainstream coins (BTC, ETH)—newbies should not get things backward; practice these 4 moves first, which is better than anything else!
Practical advice for newbies (listen to me, minimize losses): ① Don't think about "turning 5000 times in two years"; just achieving "not losing" is winning; ② Look at 5 mainstream coin K-line charts every day, only focus on "price + trading volume", don't get dizzy from fancy indicators; ③ Remember the mantra: "Withdraw from the shrinking volume top, only enter at the continuously increasing volume bottom"; ④ Only invest 10% of your principal each time, set a 5% stop loss (for example, 2000 yuan principal, only invest 200 at a time, if it drops by 10 yuan, run)—if you can afford to lose, you can play longer!
I've seen too many people turn trading into a "gamble"—chasing highs and cutting losses, fidgeting and making random moves, eventually losing all their principal; it's really unnecessary! The core of top-level trading is "not fidgeting and understanding the rhythm"; there are many opportunities in the market. In a volatile market, "less operation" is winning! Follow me, and next time in a volatile market, we'll make steady profits together.
