In my 7th year of trading coins, I already have over 10 million in assets in my account.
The starting point wasn't high. In 2017, I took 200,000 yuan left from my wedding and opened Binance, starting trial and error with a broken laptop.
There are no mentors guiding me, no high-frequency bots, and I don't understand blockchain data analysis.
The only thing I can rely on is the pitfalls I've encountered over these 7 years and the gradually summarized set of 'down-to-earth and ruthless' market analysis logic.
There are no miraculous trades, no overnight riches; it's all about endurance, patience, and waiting. Today, I will share 6 rules I've learned; they aren't sophisticated but are truly useful.
1. Sharp rises and slow declines = the main force is still in play.
I once saw a copycat coin pull five big bullish candles in a row, and when it corrected, it was painfully slow, causing many to rush to take profit.
But I know: if there are truly big players controlling the market, they won't just run away; they usually wash out a wave before pulling it up again.
Three days later, it indeed took off again, doubling.
Summary: Sharp rises and slow declines indicate the main force controlling the pace; violent rises and falls might actually be false breakouts.
2. Sharp declines and slow rises = the main force has already left.
During the bear market of 2018, how many people fantasized about a 'rebound after a crash,' only to find the rebound weak and getting trapped more and more.
In this kind of trend, the main force is simply gone, leaving only retail investors cutting each other.
Summary: After a big drop, don’t rush to catch the falling knife; treat 'gradual rises' as a last flicker.
3. High volume at a high position is not scary; no volume is the real danger.
The coin tripled in value, and on the day it surged to a high position, the trading volume exploded. My friend advised me to sell, but I didn't move, and it ended up rising another two times.
Summary: High volume at the peak = the market still has people willing to chase; instead, a decrease in volume while consolidating is the true signal of a peak.
4. High volume at the bottom does not equal a start; look for 'continuity.'
Many people rush in at the sight of a large bullish candle at the bottom, only to get trapped by a 'false breakout.'
Coins that truly take off often do so after a long period of low volume fluctuations, followed by explosive volume and several consecutive days of high volume.
Summary: Don’t be fooled by one or two bursts of volume; wait for it to 'continue with high volume' for the real opportunity.
5. True market watching is about reading emotions.
You think you're looking at prices by watching the candlesticks, but actually, you're watching market sentiment.
Trading volume, order book, and community sentiment are the windows to emotions.
When the market is bad, the whole network shouts 'buying opportunity'; when the market is good, the main force has already quietly entered.
Summary: Volume + community sentiment = emotional consensus; being able to read this is much stronger than just watching the market.
6. Those who can hold cash are the true experts.
I once held cash for nearly a year, just watching the market without taking action, and I also missed a 10-fold opportunity.
But I know: forcing a trade when it shouldn't be made is the most expensive tuition.
Summary: Being able to hold = patience; not chasing = calmness; not acting = composure. Real opportunities don't come often in a year.
This method isn't sexy or trendy; in fact, it’s a bit old-fashioned.
But it has saved me many times. The most important ability in the crypto world is never to 'catch the violent rise' but to 'avoid the violent fall.'
Remember this: surviving gives you the chance to turn things around; after turning around, you are qualified to talk about getting rich.
If you're still confused, start practicing with these 6 rules.
Understanding 3 rules can help you avoid major pitfalls; mastering 5 rules makes you more likely to succeed than most people.
I'm not a genius, nor do I have a background; I just have more patience than others.
You can do it too.
