Who would have thought? Eight years ago, I plunged into the crypto space with a borrowed 50,000 as 'initial capital' and lost everything within half a year, with debts piling up higher than myself; yet today, when my account popped up a notification of a net profit of 260,000, I looked out at the bustling traffic and suddenly felt that those drinking parties and small talk had become irrelevant backdrops.
I am Lao K, I have been struggling in the crypto space for 8 years. I have no insider information, did not catch the so-called 'crazy bull market', and even faced liquidation three times, stopping losses many times. The worst moment was sitting on the rooftop for a night, not because I was feeling hopeless, but pondering 'why others make money while I lose everything'. For over 3000 days and nights, I focused on one thing: treating trading as a game, reviewing mistakes, copying successes, and relentlessly executing a method so 'stupid that no one wants to learn' to the extreme.
Today, I’m not hiding anything. Here are 6 'lifesaving principles' that I summarized after breaking countless wallets, all practical tips. Understanding them can help avoid 3 years of detours:
1. Volume is the 'heartbeat' of the market; don’t just look at K lines and guess blindly
Many people stare at the K line chart and guess sizes, forgetting that volume is the true voice of funds! When prices rise quickly and fall slowly, it is likely that large funds are quietly 'accumulating'; don’t rush to chase. But if after a quick rise, a big bearish candle suddenly crashes down, that’s not a pullback; it’s funds 'harvesting and leaving', hurry up and run without looking back—I suffered this loss last year when a certain mainstream coin surged 18%, and I rushed in, only to be pressed down the same day.
2. The rebound after a flash crash is 'a knife wrapped in sugar'
A market that falls quickly and rebounds slowly essentially means that funds are 'quietly offloading'. I have seen too many people rejoicing over the rebound after a flash crash, thinking 'the bottom-buying opportunity has come', only to rush in and get trapped—it's like an alligator playing dead; you think you are picking up a bargain, but in reality, you are walking into its mouth. I once couldn't resist buying into a flash crash bottom and lost 30% that day; since then, I wait 3 days for any tempting rebound.
3. Low volume at high levels is more dangerous than high volume declines
Many newcomers think that 'only a surge at the top will lead to a collapse', which is actually a huge misunderstanding! If a certain cryptocurrency rises to a high position and then stays flat with low volume for a long time, that is the 'calm before the storm'—the funds have quietly run away, just waiting for the last batch of bag holders to enter the market. Last year, there was a small cryptocurrency that stayed flat at a high position for half a month. I reminded my fans to reduce their positions, and at that time, some even scolded me for 'not understanding the market'. As a result, a week later, it directly dropped by 60%, and those who scolded me stopped talking.
4. For bottom building, wait for 'double confirmation'
Don't think that a surge at the bottom is an opportunity! A single surge may be 'baiting', only after continuous oscillation and shrinking volume, followed by a surge in volume, is it the real 'bottom signal'. Last year, I bought the dip on a certain mainstream coin, waiting for it to oscillate for 20 days with decreasing transaction volume, then suddenly surged by 5% before I entered, ultimately earning 40%—patience is not being zen; it is the prerequisite for making money.
5. K line is 'the result', and volume is 'the reason'
Remember one thing: K lines tell you 'what happened', volume tells you 'why this happened'. Shrinking volume means the market is 'cold', and no one is willing to trade; it is very likely to continue oscillating; surging volume means 'funds are pouring in', it could be an opportunity or a trap; the key is to watch the position. I spend 2 hours reviewing every day, half the time looking at volume, even more seriously than looking at K lines—understanding volume is like grasping the temperament of the market.
6. Top mentality: dare to be in cash, do not be obsessed
This is my most core insight! Many people do not lose due to technique, but due to 'explosive mentality': greed chasing prices, fear cutting losses, obsession with a certain cryptocurrency, leading to increasing losses the more they operate. I can now do 'never get itchy fingers when I should be in cash, and never hesitate when I should enter the market'—being in cash is not giving up opportunities; it is waiting for the best opportunity; not being obsessed is not being zen; it is being responsible for your own wallet. I once turned a small loss into a big loss due to obsession, only later to understand: in trading, 'less operation' can sometimes be more profitable than 'more operation'.
After 8 years, I have gone from being heavily in debt to a net worth of over 50 million. The pitfalls I have encountered could fill a truck. I know that you in front of the screen may also be anxious about your positions, you may have experienced 'reviewing late into the night until collapsing', and you may have been severely taught by the market. It’s okay, the crypto space has never lacked opportunities; what it lacks is 'wisdom that doesn’t charge blindly' and 'a mindset that can execute'.
The market is already brewing; don’t walk in the dark alone anymore! Follow me.
