Some summarized rules circulating in the crypto world:
In the past, there was a clear time zone difference between Eastern and Western markets, as most trading occurred during Western hours. The peak trading period in Beijing time is from 21:30 to 07:30 the next day, with significant price increases often occurring in the early morning. This time characteristic leads to a distinct day-night trading rhythm, and many traders adjust their schedules to sleep at 20:00 and monitor the market at 04:00.
1. If there is a continuous decline during the day in the domestic market, it can be a good time to buy the dip; after 21:30, overseas funds may push prices up;
2. It’s not advisable to chase prices during the day if there’s a significant increase, as there's a high probability of a pullback in the evening;
3. Buying and selling can refer to "spike signals," which are short-term market fluctuations in the candlestick chart. The deeper the fluctuation, the stronger the signal;
4. Usually, significant meetings or good news lead to price increases, but prices may fall after the news is released (good news fully priced in);
5. If community members are excessively recommending a certain coin that excites you, it’s likely a trap; taking the opposite position is usually safer. If a coin is overheated in speculation, shorting can be considered;
6. If a coin recommended by group members does not interest you, it may have upside potential; if in doubt, consider a small position for testing;
7. Holding a large position carries a high risk of liquidation, and the position may be closely monitored by exchanges;
8. When a stop-loss for a short position is triggered, the market often declines; market makers may trick traders into exiting or push for liquidations before the actual drop (e.g., TRB);
9. When your position is about to break even, rebounds often stop; market makers do not allow easy liquidation;
10. After taking profits, the market often rises; it is easier for market makers to push prices up after you exit;
11. When extremely excited about the market, a sharp drop may occur, as emotions can be manipulated by market makers;
12. When funds are exhausted, projects often rise, aiming to trigger FOMO emotions and lure you into the market.
It can be seen that the market is highly manipulated, and trading requires position control, learning to take the initiative, and not entering blindly before clarifying the intentions of market makers, or you may easily become a target. These rules are a summary of experience and are not strict laws; operations should be combined with real-time market conditions and risk tolerance. Trading tests patience and composure.
