The recent rebound has reignited the confidence of many brothers. Those who laid out strategies together during that time should have seen good returns recently.
But recently, a strange phenomenon has appeared: many unfamiliar altcoins have skyrocketed. Many brothers feel itchy watching, while the mainstream has hardly moved. Why can those obscure coins run? Have you thought about the reason behind it?
In doing anything, we must understand its underlying logic. Know that the market makers are not philanthropists; when you are in the market, they will do everything possible to make you cut losses and exit. Once you exit, it will start to soar, making you regret deeply.
So we need to understand that the reason it can rise today is that it is light. What many do not know about those obscure coins is that they have low volume, or many people have taken high-leverage short positions. After accumulating enough, doesn’t it need to rise to clear those positions?
Another possibility is to deliberately create this atmosphere to deceive more retail investors and novices to enter the market. Remember this, brothers: if it's not yours, don't force it.
In fact, trading will change your life if you can truly understand it. No one can deceive you once you grasp it; those who have truly understood the market can see through human nature and get to the essence of things.
Therefore, I often say that if you can do trading well, it's equivalent to having an ATM. Unfortunately, most people go through their lives without knowing the withdrawal password of that ATM.
Get to the essence: First, what is the essence of trading? Who do you think your opponent is? Do you think the patterns and news you see are the core of trading? Should you follow institutions or be their enemy?
I will share ten insights. If you can truly absorb them and put them into practice, it’s equivalent to having the withdrawal password.
First of all, the important first point is to learn the institutional trading model. Big rises and falls are risks; pullbacks are your entry opportunities.
The second point is that a decrease in volume after consecutive rises usually indicates a top.
The third point is that a decrease in volume after consecutive declines usually indicates a bottom.
The fourth point is that during sideways fluctuations, you must not engage because the direction is unclear and you may be easily harvested back and forth.
The fifth point is that the essence of trading is waiting; patience is the greatest weapon.
The sixth point is that if you glance at the market and feel a little hesitant, it means the timing is not right; just continue waiting.
The seventh point is that as long as there are no opportunities for your strategy in the market, do not act; just continue waiting.
The eighth point is that the core of trading is to learn to cut losses because risk management must always come first.
The ninth point is that those who can truly make money from trading are calm and composed, not competing or rushing, and are unflustered in the face of change. Never trade with resentment because the God of Wealth fears those who are filled with anger.
The last point is that you must have your own trading perception and not just follow others blindly because the information you hear and see is deliberately shown to you.
There are no shortcuts in trading, but there are rules. As long as you can truly understand these rules and learn the institutional trading model, understanding when strong institutions enter the market, you will have found your own withdrawal password.
If you are also in a confused stage, we can keep communicating more!