Hi, I am a 10-year veteran, 35 years old, from Hunan to Guangzhou. Starting with a principal of 50,000, I have navigated through 3 rounds of bull and bear markets, and now my assets lie flat at 500 (ten thousand). No bragging, no mysticism, all relying on a set of rigid 'dumb methods'. Especially from May to October this year, the market fluctuated, but I steadily made over 700,000 U with this method.
Today, I am giving you the 6 iron rules and specific operational details that I exchanged for real money all at once.
Iron Rule 1: Quick rise, slow fall = Main force buying, hold steady and don't get off the bus!
Core takeaway: After a rapid rise, if the pullback is slow, low-volume, and the price consistently does not break key support levels (like previous highs or important moving averages), this is very likely the main force cleaning out the indecisive retail investors to reduce pressure for the subsequent rise.
How to do it:
Confirm the trend: Ensure that the overall trend is upward (for example, the weekly level is in an ascending channel).
Observe pullbacks: After a surge, observe the trading volume during the pullback. The more severely the volume shrinks, the smaller the selling pressure, and the greater the possibility of a washout.
Find the right entry point: Do not chase high during a rapid surge; instead, wait for it to stabilize near the support level after a volume contraction, and then gradually increase your position.
Set stop-loss: Set the stop-loss level just below the support level to prevent misjudgments.
Iron Rule Two: Fast drops and slow rises = main force unloading, and rebounds are opportunities to escape!
Core insights: The price suddenly crashes, followed by a slow rebound, but the trading volume during the rebound is sluggish and cannot effectively break through previous important resistance levels. This is a typical case of the main force using the rebound to lure in naive investors wanting to catch the bottom.
How to do it:
Be vigilant against any flash crashes: As soon as there is a significant drop in volume, be alert and do not harbor the illusion that 'after a big drop, it should rise.'
Evaluate the quality of the rebound: If the rebound lacks volume and the price is sluggish, this is an 'ineffective rebound.'
Decisive decision-making: If you are a holder, take advantage of the rebound to reduce your position or liquidate; if you are in cash, hold your hands, and absolutely do not try to catch the bottom.
Iron Rule Three: High volume at the top does not die, while low volume consolidation is truly dangerous!
Core insights: After the price of the coin rises to a high level, if it can still sustain mild volume increase (not massive volume), it indicates that market attention and capital inflow are still present, and there might be another sprint. However, if it continuously shrinks in volume at high levels, like a stagnant pool, it means that capital has already lost interest, and a big drop may come at any time.
How to do it:
Differentiate volume: 'Sustained mild volume increase' is healthy, while 'huge explosive volume' may indicate a short-term climax, so be cautious.
Observe price behavior: When the price is consolidating at a high level, if the price fluctuations are getting smaller (forming a contraction pattern), and the trading volume continues to shrink, this is the 'calm before the storm.'
Action guide: When signs of high-level volume shrinkage appear, at least reduce your position by half to protect profits.
Iron Rule Four: Don't get excited by volume at the bottom; sustained volume is the real initiation!
Core insights: After a long decline, a sudden increase in volume at the bottom area is likely a “one-day trip” market or a trap for the naive. The real bottom initiation signal occurs after a period of volume contraction and consolidation (when no one is selling), followed by a mild increase in volume for more than three consecutive days.
How to do it:
Patience is key: Wait until the currency price drops thoroughly, trading volume shrinks to the extreme, and fluctuations become minimal before paying attention.
Confirmation signals: Only when you see consecutive small bullish lines with increasing volume, and the price steadily stands above the short-term moving averages (such as MA20/30), is it time to consider building a position.
Buy in batches: Do not invest heavily all at once; confirm the trend is valid before gradually increasing your position.
Iron Rule Five: Trading cryptocurrencies is trading emotions; volume is the mirror of emotions!
Core insights: Candlestick patterns can be drawn, but trading volume is the most truthful emotional reaction of the market. Volume increase = market consensus, divergence increases, direction is about to be chosen. Increased volume in rising indicates many buyers are resolute; increased volume in falling indicates many sellers are panicking.
How to do it:
Develop a habit: When observing the market, place the trading volume window in as important a position as the candlestick chart.
Analyze divergences: At any key position (resistance or support), if there is a volume breakout or volume breakdown, the success rate of this signal is much higher than that of a volume contraction test.
Combine judgments: Integrate the four elements of 'price, volume, time, and space'; volume is the key to validating the authenticity of the other three elements.
Iron Rule Six: The ultimate state is 'nothing'—the best mindset is to have no mindset.
Core insights: This is not a passive approach; it is the highest level of discipline.
No attachments: Do not get emotionally attached to any coin; when it's time to cut losses, act decisively; when in cash, enjoy your tea peacefully.
No greed: Do not pursue buying at the lowest point or selling at the highest point; just aim to catch the fattest part of the fish, giving up the fantasies of the fish head and tail.
No fear: When the market is in panic and your trading system signals a buy, dare to place orders in batches according to the plan.
How to do it:
Make a plan: Before trading, write down your buying conditions, position size, stop-loss level, and target level in black and white on paper.
Execute the plan: In trading, strictly execute your plan like a robot, without letting intraday fluctuations affect your emotions.
Review summary: After trading, review whether you adhered to the discipline, rather than just the profit or loss of a single trade.
These six rules seem simple, but knowing is easy while doing is hard. Investing is a practice; technology determines the lower limit, while mindset and discipline determine the upper limit.
I hope these insights help you avoid detours. Remember to like and bookmark, and often revisit to remind yourself!
In the past, I used to stumble around in the dark alone, but now I hold the light in my hand.
The light is always on, will you follow? @今酒
