Summary of some rules circulating in the crypto circle:
In the past, there was a significant time difference in market behavior between the East and West. Since major trading activities are concentrated in Western time, from 21:30 to 7:30 the next day, the market often sees high activity, especially significant rises often occur in the early morning. Therefore, many traders adjust their schedules, choosing to sleep at 20:00 and wake up at 4:00 to monitor market dynamics.
1. If there is a continuous drop during the daytime in the domestic market, consider bottom fishing, as overseas funds may drive the price up after 21:30;
2. If there is a significant rise during the day, it is not advisable to chase high, as a correction is highly probable in the evening;
3. Trading decisions can refer to 'pin bar' signals; the deeper the pin bar, the stronger the corresponding buy or sell signal is often;
4. Before major meetings or the announcement of favorable news, the market usually rises in advance, but after the news is released, it is prone to decline (good news is fully priced in);
5. When the community crazily recommends a certain coin and praises its prospects to the skies, making you feel excited, it is likely a trap; a contrary operation may be more prudent. When a certain coin is extremely hot, consider shorting it;
6. If the coin recommended by friends does not interest you at all, it may actually have upward potential. If in doubt, you can try with a small position;
7. Holding a heavy position carries a very high liquidation risk — because your position may have been included in the exchange's key 'liquidation watchlist';
8. When the stop-loss for a short position is just triggered, the market often drops. Market makers commonly start the real decline after 'tricking you off the train' or forcing liquidation (for example, a similar situation occurred with TRB);
9. When your position is about to be relieved, just one step away, rebounds often stop suddenly — market makers won't easily let you close your position and run away;
10. After you take profit and exit, the market may start to rise — only after you get off the 'train' will it be easier for the market makers to pull up the price.
11. When you feel extremely excited about the market, a crash may be imminent; your emotions may be manipulated by the market makers;
12. When your funds are exhausted, you often see various projects rising, aimed at triggering your FOMO (Fear of Missing Out) emotions, enticing you to re-enter the market.
It can be seen that the probability of market manipulation is high. In trading, in addition to strictly controlling positions, one must also learn to 'strike back' — resolutely avoid entering blindly before clarifying the intentions of the market makers; otherwise, you may become the 'meat' waiting to be slaughtered. Ultimately, trading relies on patience and composure.
