I just had tea and chatted with a cryptocurrency expert. He said he entered the crypto world with 400,000, went down to just 80,000 at one point, and now his assets are worth tens of millions. What changed his fate was his persistence in learning and improving his understanding. He summarized five key insights, which are very valuable, and I hope friends who see this can be inspired!!!!!

1. Don't rush to cut losses during a significant drop in the early session; it is usually an overreaction to negative news from the night before. You can wait for market recovery and reversal. A surge at the end of the session should not be blindly chased; some major players like to test the market and induce buying, and the next day may open low to suppress and accumulate.

2. Make good use of trading volume as a practical technique; it can indicate the future trend of the market. A sustained rise on low volume indicates strong control by major players, while a decline on low volume means panic selling has not yet exited, and the bottom has not been reached, so it will continue to drop.

3. Learn to observe the structure of sector tops; typically, sector trends form in five waves: the first wave attracts speculative buying, the second wave is a washout and adjustment, the third wave is the main upward wave, the fourth wave has complex divergences, and the fifth wave is a pull to sell. During this process, the third wave sees the largest increase, followed by the first wave, and the fifth wave has the least increase. However, market conditions can change dramatically, and there are often instances where the five-wave pattern is not completed; it should not be memorized rigidly. After discovering that the leading stocks in a sector have stagnated, if the subsequent rally does not continue with the previous strength, it is likely that a peak has been reached.

4. During each major peak acceleration period, you will notice a certain sector's shanzhai (copycat) stocks surge, triggering a reversal in the major trend. Just check if the performances of major leaders have stopped falling and are rising; then the index will follow suit and recover.

5. Focusing and specializing is the best way to start, especially for new friends entering the market. Studying one method and mastering its techniques is much more rewarding than trying to learn everything at once. Being greedy will lead to losses, and not mastering a skill can result in being taught a lesson by the market. Do not switch modes arbitrarily; dedicate yourself to learning, and gradually you will find your rhythm. After achieving stable profits, then you can learn more techniques to integrate them well.

Therefore, as investors, while pursuing high returns, it is essential to carefully assess risks and invest rationally.

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