The Soul of Transactions, Guiding Direction:
Fundamentals are like tides, pulling along the long-term trends of digital currencies. However, what truly determines price fluctuations in seconds is the pulse of the market—trading volume. It is the most direct manifestation of capital's will and a lighthouse piercing through the fog. Remember: a surge in volume during an uptrend indicates the momentum is not yet exhausted; a surge in volume during a downtrend means risks are not yet eliminated; massive volume stagnation at high levels signals constant alarms; significant volume changes at low levels hide opportunities. Trading volume is the 'potential energy' driving price movements; direction and momentum must be clearly discerned. In an uptrend, volume reflects the buyers' determination to buy at higher prices; in a downtrend, volume shows the sellers' anxiety to offload at lower prices. Understanding this principle, volume and price become guiding lights.Still Waters Run Deep, Building Momentum:
When prices hover repeatedly within a narrow range, the longer the time, the more astonishing the accumulated energy becomes. This is like lava surging deep within the crust; the longer it is suppressed, the more violent the eruption. The market logic is clear: in narrow fluctuations, both bulls and bears are entangled, with no short-term profits to be made, and chips quietly change hands. Time is the breeding ground for storms. Once balance is broken and trends are established, three forces will push the wave: the winning side will chase the victory, those deeply trapped will be forced to cut losses, and onlookers will rush in with the trend. Therefore, in the face of prolonged stagnation, patience is golden. Instead of risking fire when direction is uncertain, it is better to quietly await a breakthrough and act accordingly.Noticing the Subtle, Signs of a Turn:
Alternating rises and falls are the norm in the market. Yet, the moment of reversal can be large or small. Major cycle reversals (e.g., double tops/bottoms, head and shoulders) take time to brew and are not accomplished overnight. The essence of intraday trading lies in capturing those subtle signals of 'technical adjustments': a sudden long upper shadow bearish candle or a bullish candle with a long lower shadow often serves as a barometer for short-term trend reversals. Within larger trends, these small waves provide excellent short-term entry or exit points. In a downtrend, one can try to go long on rebound signals; in an uptrend, one can try to go short on adjustment signs; the key lies in sharpness and decisiveness.Survival in a Dilemma, Strategies for a Range:
When the market is caught in a tug-of-war (range-bound fluctuation), strategies must be flexible:Conservative Method: When direction is unclear, take profits when seen, and reduce positions in batches; don’t panic when prices drop, gradually buy low. Patiently average down costs, and wait for the right opportunity to break through.
Dynamic Strategy: After confirming the range boundaries, buy at the lower edge and sell at the upper edge, then try to short; if it touches the lower edge again, close the short and go long. This strategy requires quick reactions and strict discipline. However, the best approach is to wait patiently and strike decisively once direction is clear. Yet, how many can possess this kind of patience?
Leveraging Adjustments, Essentials of Short-term Trading:
Even the strongest one-sided market needs to pause and consolidate. The root of technical adjustments lies in profit-taking creating reverse pressure, stop-loss triggers exacerbating volatility, and large funds short-term promoting disturbance in the market. This is precisely the hunting ground for short-term experts. For example, consecutive bullish candles but narrowing gains daily signal an impending adjustment. Move with the trend, seeking opportunities to short during an uptrend adjustment or capture longs during a downtrend rebound is the surest way to achieve efficient short-term profits.
The Way of Simplicity: The art of trading values precision over quantity. Rather than getting lost in the jungle of complex indicators, it’s better to refine a core set of rules that align with one’s own psychology. Only by simplifying can one establish oneself in the turbulent sea of coins.
Chronicles of Floating in the Sea of Coins: Survival Rules Under the 80/20 Iron Law
The cryptocurrency market is the most brutal and realistic practice ground for the '80/20 rule'—80% of people lose, 10% struggle, and only 10% capture the majority of wealth. If you find yourself trapped in the mire of losses, feeling confused and unwilling, first question your own heart:
What gives me the right to be among the top 20%?
Where does wealth ultimately flow? Who is in control of the game?
Is my depth of understanding sufficient to surpass most in the market?
Do I possess the ability for independent thinking rather than blindly following the noise?
In the face of the dealer’s capriciousness, can I remain calm and unmoved?
The Essence of the Market: The cryptocurrency market itself does not generate value; trading profits come from price differences, essentially wealth transfer. What you gain must come at the expense of others. Imagine a game among ten people: if one person wins while nine lose, the game can still continue; if nine people win at the expense of one, the loser exits, and the game ends. Therefore, the underlying logic of market operation is destined to turn the majority into fuel to sustain its existence. This is like gambling, where most people fail, thus making the industry flourish.
Four Iron Rules to Join the Ranks of Winners:
Hoarding Coins and Guarding the Heart: A 'foolish' method to traverse bull and bear markets. Choose quality assets, ignore short-term fluctuations, and hold for years. This path tests human nature; it seems simple, yet is the most difficult. Only those with great determination can succeed, but the returns are also the most abundant.
Bull Market Rotation: Strategies exclusive to bull markets. With a small amount of idle capital, pursue mid-market cap (2-10 billion) and temporarily underperforming altcoins. If one coin rises significantly (e.g., over 50%), switch to the next potential asset. If trapped, patiently wait for the bull market’s favorable winds to resolve the situation; the choice of coins is especially critical.
Grid Dynamics: An enhancer for long-term value coins. Utilize liquid capital to set buy orders below the current price (e.g., 10%) and sell orders above the current price (e.g., 10%) to capture oscillation profits. Move with the market, adjust dynamically, and accumulate small victories into large gains.
Diversification as a Shield: The foundation of survival. Avoid putting all your eggs in one basket. Asset allocation across different coins and types (such as mainstream/altcoin/stablecoin) is the cornerstone of resisting black swans and preserving strength.
Sailing in the Sea of Coins, a lone sail can easily vanish. Follow my profile and like if you yearn to break through the information cocoon, gain insight into market opportunities, and find like-minded individuals to move forward together. I am willing to open the door. Join us to explore the road ahead; perhaps the other shore is not far away. #币安Alpha上新
