The crypto market is unpredictable, but people can last long! From 100,000 to millions: Do not be greedy for small profits, do not take catastrophic risks, and use three tricks to walk steadily for ten years!

As someone born in the '85 generation, I've long passed the age of 'charging forward to conquer the world.' I've been through the ups and downs of the crypto circle for nearly ten years, and to call myself an 'old hand' is half due to experience and half due to age. Now there are many young people in the crypto circle, with those born in '95 and '00 daring to take risks, but when it comes to the storms we've seen, the '85 generation has a bit of 'senior' confidence—after all, we experienced the ICO frenzy of 2017, endured the crash on March 12, 2020, and witnessed the myth of Bitcoin rising from a few thousand to sixty thousand dollars.

Experts reach a realm of solitude, where countless hardships are hard to sing about.

A survivor on the trading floor has summarized several trading rules that precisely fit the above criteria. I list them here, hoping investors can increase their profits and stay away from pain.

Whether a novice or an expert, many often overlook the psychological factors that contribute to successful trading. Trading is undoubtedly one of the most stressful jobs in the world, akin to fire-eating performances or bomb disposal.

Trading performance can sometimes feel like a roller coaster, climbing high at times and plummeting at others, always mixed with joy and sorrow. A moment of inattention can lead the market to shatter investors' psychology and trample their souls. As long as you enter the market to trade, such experiences are inevitable, but investors can learn how to cope with these situations and even profit from them.

Never go against the market; in a major market trend, you can only move with the market, never against it.

Carefully analyze the market, correctly judge the main market trend, buy or sell at the clear establishment of the main trend, and decisively close positions when this main trend ends.

1) Correctly study the main market trend and prepare to take action based on that. This is an important step in investing; you must focus fully and continuously track and study the market, doing more and saying less.

2) Establish new positions in accordance with the main market trend. It requires close observation of the market, dedicating several weeks or longer to gradually establish new positions.

3) As the main market trend continues, gradually reduce the amount of positions built. This is especially important; many traders fail because they gradually increase their trading volume as the main trend continues, which leads to losses when the main trend reverses. This is because most of the investors' funds are invested near the top (or bottom) area.

4) When the main trend ends, decisively liquidate positions.

The only effective strategy is to intervene when the main trend is forming and exit when the main trend reverses. If the main trend reverses when you buy, do not go against it; manage your positions well, exit the market, and rethink new trading plans. Only by accurately grasping the market pulse and acting in accordance with the main trend can one achieve profits.

So how can we do well in cryptocurrency trading? Once a person enters the financial market, it’s hard to turn back. If you are currently losing but still confused, and plan to treat cryptocurrency trading as a second career, you must understand the 'bottom fishing strategy.' Understanding it deeply will help you avoid many detours; these are all personal experiences and feelings. I suggest saving them for repeated contemplation!

How to bottom fish?

My method has three steps.

1. My bottom fishing criteria.

In 5 minutes, I will teach you how to bottom fish!

Since we are talking about bottom fishing, it certainly means 'turning from short to long.' What we need to do is reverse a certain downtrend. Therefore, to learn how to bottom fish, an important point is to be able to understand whether the recent downtrend has completed. If it hasn't completed, you may find yourself buying halfway down, and when it finally completes, you may not dare to buy, resulting in a missed opportunity.

So how do you determine whether a certain downtrend has finished? Three steps:

Step 1: Find concentrated areas.

Step 2: Compare sizes.

Step 3: Look for divergence.

2. How to bottom fish.

Step 1: Find concentrated areas.

Let's first look at Step 1: Find concentrated areas. The so-called concentrated areas refer to concentrated trading areas, which are essentially the oscillation trading range we learned in the required course of price action, and the central area we learned in Chan theory.

(Figure 1)

For example, this area in region A is the concentrated trading area of the downtrend 1; this area in region B is the concentrated trading area of downtrend 2; similarly, this area in region C is still the concentrated trading area of downtrend 2; (As shown in Figure 1)

In Step 1, we need to find all the concentrated trading areas in the downtrend we want to observe. Once we have found them all, we can consider Step 1 complete.

If you don't know how to define which downtrend to observe, whether to focus on this segment or that segment, this refers to the concept of the associative law in Chan theory, and you can move to the required course (Panda's lecture on Chan theory, Lecture 13: Associative Law and Ambiguity) to learn.

Step 2: Compare sizes.

After completing Step 1, Step 2 is to compare sizes.

Whose size are we comparing? Compare the sizes of all the concentrated trading areas you found in Step 1, and identify the one that you believe is the largest in area, has the most K lines, and the longest stagnation time, and mark it.

(Figure 2)

For example, to illustrate the earlier case, if we separate it using the associative law and focus only on the downtrend in segment 2, we can find two areas of concentrated trading, B and C, in this downtrend. (As shown in Figure 2)

And we can clearly see with the naked eye that the C area is larger than the B area, has more K lines, and has longer stagnation time. Therefore, we have already completed Step 2: identify the largest concentrated trading area and try to mark it.

Step 3: Look for divergence.

Next is the final step: observe divergence.

What is divergence? Simply put, it means that one segment is less than the previous one. Zhang San participates in a cross-country marathon; normally, the longer he rests midway, the more distance he should be able to run afterward. However, the reality is: the longer he rests, the less distance he can run afterward. Previously, resting for 1 minute allowed him to run another 10 kilometers; now resting for 5 minutes allows him to run only 8 kilometers at most. We then say that Zhang San's strength has diverged.

This is a sign of exhaustion, simply put, it means it's almost done! It's already a hopeless situation.

(Figure 3)

Having understood what divergence means and being able to find the area with the largest concentration of trading, I now ask you: Regarding the downtrend in segment 2, if we take the largest concentrated area as the dividing point, comparing the small segment a before entering the concentrated area and the small segment b after leaving the concentrated area, has divergence occurred? Has there been a breakthrough where each segment is less than the previous one? (As shown in Figure 3)

(Figure 4)

Logically, it should have rested here for a longer time, and the distance it runs forward should also be longer, right? So why, while running, does it not reach the equal distance of segment a? (As shown in Figure 4)

(Figure 5)

You may ask, how do you know it has failed?

Step 1: It has broken the K-line, which means it has formed a bottom pattern;

Step 2: It has already made an upward move, ending this segment of decline; (As shown in Figure 5)

(Figure 6)

Step 3: This small segment b also has a self-similar structure, and it has its own concentrated trading area here, and divergence has also occurred. (As shown in Figure 6)

If you don't understand these, that's fine; trust that after completing my required course (Naked K section), you will understand everything.

3. Summary and conclusion.

Alright, to summarize, in 5 minutes, I will teach you how I bottom fish in three steps.

(Figure 7)

Step 1: Find concentrated areas. I have already found them: B and C. (As shown in Figure 7)

(Figure 8)

Step 2: Compare sizes. Clearly, the C area must be larger than the B area, and I have found it. (As shown in Figure 8)

(Figure 9)

Step 3: Look for divergence. We only need to observe the area with the largest space; compare the trend before it and after it, and we know that divergence has occurred. (As shown in Figure 9)

Therefore, we can try to bottom fish, but we must control our positions well. After all, this is an opportunity from the left side; absolutely do not enter with all your funds! My principle is to never exceed 50%!

Don’t rush! It's not over yet. You say, Coach, I’ve learned it, but now there are still two questions:

①: Now that I know how to bottom fish, how do I take profits at the top? Buying is for the apprentice, selling is for the master. You’ve taught me how to buy at the bottom; how can I sell at the top?

②: If I find many concentrated trading areas, and they all have the same area, how should I compare the divergence?


If you are also a tech enthusiast, take a look at the picture below:

Finally, let's talk about: 9 strategies for making money in cryptocurrency trading, lazy strategies to prevent scams.

1. Mainstream Coin Accumulation Method Accumulating coins is relatively simple, but it is difficult to execute. First, buy several mainstream coins in spot trading and then hold them for a year or more without acting. The returns can be several times (it is not recommended to buy small coins, as they may go to zero). However, beginners often see high returns or encounter a halving in coin prices and plan to change cars or exit, and many find it hard to hold for 3 months, let alone years.

2. Bull Market Chase Down Method This method is suitable for buying mainstream coins during a bull market, as mainstream coins generally won't be locked up for too long. For example, if you buy Ethereum and it rises by 30% or more, you can switch to the next mainstream coin that is falling, and so on. If you bought in the wrong direction and are locked in, just wait; the bull market will definitely unlock you. The premise is that you can't buy small coins, as Bitcoin and Ethereum fluctuate quickly, making this method easier to control.

3. Hourglass Car Change Method In a bull market, buying almost any coin will rise. Funds are like a giant hourglass slowly seeping into each coin, and the rise has a clear pattern: first, Bitcoin rises, then mainstream coins start to rise, followed by a general rise in smaller coins that haven't increased. But if Bitcoin has risen, you can choose the next category of coins that haven't yet risen to start building positions.

4. Pyramid Bottom Fishing Method: Predicting that a coin will plunge significantly, place four positions, each at different price levels: buy one-tenth of the position at 80% of the coin price, buy one-fifth at 70%, buy three-tenths at 60%, and buy four-tenths at 50%. Once it begins to rebound, you will take profits layer by layer.

5. Moving Average Method Understand some basic K-line indicator parameters and set the level to daily. If the current price is above MA5 and MA10, hold it steady. If MA5 falls below MA10, sell; if MA5 rises above MA10, buy to build positions.

6. Rolling Warehouse Coin Accumulation Method This is only suitable for long-term mainstream coins. For example, if Ethereum's current price is 1658, place an order to buy at 1458. When the buy order is executed successfully, place a sell order at 1958; use the profits to accumulate coins and take out the liquid funds to wait for the next opportunity, adjusting dynamically based on the current price. If there are three such opportunities in a month, you can accumulate a lot of coins.

7. Aisiou Compound Interest Method: Continuously participate in multiple bets. When a new coin rises by 3-5 times, take out the principal and invest in the next bet, keeping the profits to continue cycling.

8. Cyclical Band Method Find coins like EC that are dark horses, add positions when the price is continuously falling, keep adding as it falls further, and then continue to throw out when there is a profit; repeat this cycle.

9. Trend Coin Long-Term Strategy If you have 3000 USDT, divide it into three parts and buy three different types of trend coins, such as three coins other than Bitcoin and Ethereum that the Federal Reserve plans to include in its strategic reserves. If a coin triples, take out your principal of 1000 USDT and reinvest the profits in the next market; with compound interest, the returns can be impressive.

The above are ten years of trading insights in cryptocurrency. After many bumps and bruises, these are heartfelt words of enlightenment. I hope they are useful to everyone. A banquet produced by Yan An is bound to be a fine product. There are beautiful people in the crypto circle, unique and independent, with a path for the soul and skill in trading coins!

No matter how hardworking a fisherman is, he won’t go out to sea during stormy weather but will carefully guard his fishing boat. This season will eventually pass, and a sunny day will come! Follow Lao Chen, and I will teach you both to fish and how to fish. The doors of the crypto circle are always open; go with the flow to have a life of flow. Remember this and keep it in mind!



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