Chasing highs and cutting losses made me cry, while my best friend kept stabbing me with 'I told you so.' Until I met a retired trading tycoon, who didn't recommend any stocks but dropped 6 sentences that saved me hundreds of thousands, turning me from a 'retail investor' into a stable profit analyst!
6 iron rules, each with a bloody lesson (essential for survival in the crypto market):
Trading volume is the real truth; K-line is just 'performance'!
After a sharp rise, it slowly falls. It's not a market correction; it's big funds secretly accumulating. But if it drops sharply right after a rise, don't hesitate to withdraw quickly. This is not a washout; it's a signal that someone wants to exit! Back then, I didn't believe in this and held onto the plunging stocks waiting for a rebound, resulting in being trapped for half a year, and I almost lost half of my savings.
The rebound after a flash crash is poison wrapped in sugar!
A fast decline is like a roller coaster, but the rebound is slow and hesitant? This is not an opportunity; it's large funds offloading! After a flash crash, don't rush to catch the bottom; what you think is a bargain could actually be a trap that someone else has dug for you. I've seen too many novices fall for 'catching the bottom in a flash crash,' including myself back in the day.
Low volume at high positions is more dangerous than high volume!
Many people think that a significant increase in volume at the top will lead to a crash? That's a big mistake! If there is no trading volume after a long period of sideways movement at a high position, it's like the calm before a storm; the funds have quietly left, and what remains are trapped positions. Back in the day, I held onto a cryptocurrency that was stagnant, thinking it would rise again, but it ended up plummeting, and I had to cry and cut my losses.
At the bottom, wait for 'double confirmation'; don't rush in!
A single increase in volume at the bottom doesn't count; it could be a trap! You need to wait for consecutive fluctuations with decreasing volume, and after the market calms down, then you can expect another wave of increasing volume; that is the real opportunity for positioning. Remember: the crypto market is not short of opportunities; what it lacks is the patience to 'wait it out.' Currently, 80% of my profits come from this 'post-confirmation positioning.'
The candlestick chart is the result; the volume is the heartbeat of the market!
Decreased volume = market is cooling down, and no one wants to enter; increased volume = funds are clustering, and opportunities are coming. Understanding trading volume is like understanding what the market is saying: when it shouts 'busy,' don't blindly follow the crowd; when it shouts 'quiet,' don't rush to run away. Follow the rhythm of the heartbeat, and you won't go wrong!
A mindset of 'starting from zero' is the ultimate trading philosophy!
Dare to stay in cash, don't cling to any one asset; don't be greedy, take profits and don't try to squeeze out the last penny; don't be fearful, be decisive when it's time to position. This isn't about being laid-back; it's about survival! I've seen too many people either run after making a little profit or stubbornly hold on to losses, ending up with nothing. After 8 years, my deepest realization is that success in the crypto market isn't about technology; it's about mindset and execution.
Lastly, let me say something straightforward:
Opportunities in the crypto market have always existed, but there are more traps. After my divorce, with no way out, I had to grit my teeth and learn; I’ve stepped into more traps than you've seen in candlestick charts, which is why I'm willing to share these heartfelt ironclad rules. No one's money comes easily, especially the little savings I had back then; every penny had to be spent wisely!
