In 2018, I entered the crypto world with a capital of 100,000, without insider information, and I never chased after so-called hot coins. I relied on what seemed like clumsy methods to grind for 8 years, and my account multiplied several times. Today, I share these 6 iron rules from the bottom of my heart; understanding them can at least save you 100,000 in losses. If you can apply three of them, you've already outperformed 90% of retail investors.
1. Rises quickly and falls slowly; don’t rush to flee in panic.
A common tactic used by the main force is to first violently push prices up to shock you, then through a long period of oscillation, wash out the shares, waiting for those who fled early to regret. It’s important to distinguish this from the situation where there is a 'spike in volume followed by an instant drop', which is a typical signal to lure people in for selling. In most cases, a slow decline is to wash out floating shares, not the end of the market.
2. Drops quickly and rises slowly; never blindly catch the bottom.
In the crypto world, there is never a lowest point, only lower. A weak rebound following a flash crash is the most poisonous trap; at this time, attempting to catch the bottom will likely result in losses. Recognizing this will immediately reduce your risk of significant losses in the crypto market by 70%. In a downtrend, rebounds are often opportunities to exit rather than signals to enter.
3. Don’t panic when there is volume at the top; lack of volume is the real danger.
When there is trading volume at the top, it indicates that there are still main forces active, and the market may have further fluctuations. But if the top is like a still pond with completely shriveled trading volume, then it's time to give up any fantasies; this is often a sign that the market is nearing its end. If you don’t run now, when will you?
4. Don't get excited by volume at the bottom; multiple consecutive days are needed to be reliable.
At the bottom, a spike in volume for one or two days may likely be a fishing trap set by the main force; don't rush to enter the market easily. Only when there is continuous volume over several days, combined with a reduction and oscillation in volume, can it be a signal that the main force is quietly building a position. At this time, it is not too late to consider entering; being prudent is always more important than being rash.
5. Volume reflects market sentiment; K-line is just a facade.
The heartbeat of the market is hidden in the volume; the traces of the main force entering cannot be concealed in the trading volume. If you only focus on K-line to see rises and falls, you will always be a step slower than others. Changes in volume are the most authentic reflection of the market; K-line patterns are often just tools used by the main force to confuse retail investors.
6. The hardest thing is learning to be in cash; this is top-level wisdom.
In the crypto world, making money isn’t actually that difficult; the hard part is keeping the money you’ve earned. Not being greedy, not gambling luck, and not fearing to be in cash are keys to surviving in this market for a long time. The patience to stay in cash is more precious than the courage to trade frequently, regardless of market conditions.
I have stepped into more pitfalls in the crypto world than you can imagine. But the survival rule in the market is that you only have one life; living means there is a chance to turn things around. There are opportunities every day in the crypto world, but you need that calmness and judgment to avoid being harvested in the dark.
Don’t rush to run, and don’t rush to catch the bottom; first understand the market rhythm, and walk steadily step by step. I hope these experiences can help you and allow you to avoid detours in the crypto world.
Blindly acting alone will never bring opportunities; follow Super Brother, and I will help you explore tenfold potential coins! Top-tier resources!
