Brothers, who would have thought that seven years ago at the electronic factory in Pidu, Chengdu, I struggled for half a day over a 10 yuan fast food meal with an egg, and now I can firmly hold the keys to two apartments, feeling a myriad of emotions as I watch the numbers fluctuate in my account. Back then, my monthly salary was 4,000, and after three years of frugal living, I managed to save up 150,000 yuan in principal. Who could have predicted that this unremarkable principal would become the starting point for changing my destiny.
Many people envy my current achievements and always say I am lucky, but only I know that this 'luck' was earned through falling hard three times and painfully summarizing the rules from those experiences. Today, I will share with everyone the pitfalls I encountered in the crypto market and the insights I gained; it's all solid advice that can help new friends avoid three years of detours!
The first time I stumbled was because I was 'anxiously escaping'. When I first entered the market, I followed the trend and bought a popular digital asset. Not long after, it rose by 20%, and I was overjoyed. But then the price started to slowly decline, and I panicked, fearing I would lose my principal, and hurriedly sold it. Guess what happened? Not long after, it soared by 50%, and I watched the profits that should have been mine disappear. I regretted it deeply!
After suffering this loss, I suddenly realized: the slow decline after a rapid rise is mostly the market's main force washing the盘, aiming to scare away retail investors like us with unstable mindsets. Later, I encountered a digital asset that surged 30% in one day, only to suddenly crash. With the previous lesson in mind, I didn't hesitate at all, decisively exited, successfully avoiding a subsequent 40% decline, and I managed to recoup my previous losses.
I thought that learning from the first lesson would allow me to sail smoothly, but unexpectedly, I fell into the trap of 'cold market at high positions'. Years ago, there was a particularly hot digital asset that kept fluctuating at high positions, but the trading volume suddenly decreased. At that time, I didn’t take it seriously, thinking it was just a temporary adjustment. As a result, a week later, the price was directly halved, and thirty thousand just vanished, equivalent to more than half a year's salary for me. During that time, I had no appetite even to eat.
This loss has engraved a principle into my bones: at high positions, if there is volume support, it indicates that there are still people willing to take over, and the market still has vitality; but if the volume is like a stagnant pool, it means that funds are quietly withdrawing. At this point, one must immediately stop losses and exit, without hesitation, otherwise, it will only get worse.
I thought after experiencing two lessons, I would become cautious, but I stumbled again the third time, this time losing due to 'mistaking a rebound for a bottom'. A digital asset fell by 25% and suddenly rebounded by 10%. At that moment, I thought it was a chance to buy at the bottom, and in a moment of excitement, I heavily invested. As a result, I was trapped for half a year, watching the loss in my account every day; it was torturous.
It was also this time being trapped that made me completely understand: rebounds after sharp declines are mostly 'bait', not the real bottom. The real bottom should wait for the price to consolidate for a while with shrinking volume, and then gently increase in volume for three consecutive days with positive closing. Only when such a signal appears is it a relatively safe time to enter.
Last year, a certain mainstream digital asset consolidated for two months, and just then, such a signal appeared. I decisively entered the market, and in just half a year, my investment tripled, which reinforced my confidence in the rules I had summarized.
Now, I only trust two things in the crypto market: volume and 'not being overly meticulous'. K-line charts may be manipulated and faked, but trading volume does not lie; it can truly reflect the flow of funds. Understanding trading volume is equivalent to grasping the pulse of the market.
At the same time, I no longer pursue highs greedily or blindly buy the dip out of fear, always maintaining a half-position operation, never fully invested or completely out of the market. I keep a portion of funds to wait for certain opportunities. You must know that in the crypto market, opportunities are always there, and preserving your principal is the key to making money.
In fact, making steady money in the crypto market is really not difficult; the hard part is overcoming one's greed and not always thinking about getting rich overnight. Many people lose money because they are blinded by high returns and blindly follow the crowd. Remembering the pits you've fallen into and following real market signals is better than anything else.
If you, sitting in front of the screen, are still panicking amidst the ups and downs, unsure of how to operate, you might as well remember these few rules I've summarized: walk slowly, it's much more reliable than rushing; if you don't understand the market, just observe and don't force yourself to enter; never invest all your funds, leave yourself a way out.
I have been in the crypto market for so many years, and I still have many practical skills and exclusive insights that I haven't shared with everyone. I will continuously update my operational thoughts and market analysis. Follow me to avoid the pitfalls of the crypto market and steadily seize profitable opportunities. Perhaps the next person to achieve financial freedom is you!
