The "buy coin" mantra from the big boss is still useful. Below, Brother Fa provides some simple explanations:
1. Buy horizontally, buy on dips, don’t buy vertically; sell at the peak of excitement;
Buy when prices are flat or declining to avoid chasing highs. Also, sell when market sentiment is at its peak.
2. Continuous small rises are real gains, continuous large rises require exit;
Small increases might indicate a genuine market rebound, while continuous large rises could be bubbles. Thus, hold on small rises, but consider exiting during large surges.
3. Significant spikes require pullbacks; don’t dig deep pits or make large purchases;
When prices surge significantly, a pullback often occurs. Buy during the pullback rather than chasing high prices.
4. Acceleration in main rises indicates a peak; sell quickly during sharp declines, sell slowly during gradual rises;
Rapid price acceleration during a main rise might signal an impending end. Sell quickly during sharp declines and gradually during slow rises.
5. Sharp declines with low volume are intimidation; retreat quickly during gradual declines with increasing volume;
When prices drop sharply with low trading volume, it may indicate market panic, so holding could be a choice. Conversely, if prices decline slowly but volume increases, it may signal a strengthening bear market, and one should exit promptly.
6. Price breaks the lifeline; don’t hesitate to make swing trades;
When prices break through a significant support or resistance level, considerable fluctuations may occur, making swing trading a consideration.
7. Pay attention to daily, weekly, and monthly charts; follow the main force to earn money;
Carefully observe price trends across different time frames and trade according to the flow of main capital.
8. If the coin price rises without volume, don’t stand guard against the main force's bait;
When prices rise without an increase in trading volume, it may be the main force attempting to lure in buyers, so be cautious not to get trapped.
9. New lows with declining volume indicate a bottom; increase in volume during recovery signals to enter;
When prices drop but trading volume decreases, it may indicate the formation of a bottom. If prices recover with increasing volume, it may signal the beginning of an upward trend, and one should enter promptly.