In 2017, I entered the cryptocurrency world with 2,600 yuan, and now I have rolled it up to 35 million.
Over the past few years, I have experienced liquidation, drawdowns, sleepless nights, and anxiety. The pitfalls I have faced and the tuition I have paid have ultimately led me to understand six iron rules.
For every rule I comprehend, I can reduce my losses by a hundred thousand; truly grasping three rules can help me avoid 90% of traps.
First rule: Rapid rise, slow fall, don’t panic sell.
That is mostly not a peak, but rather accumulation by the market makers. What you should truly fear is a rapid spike followed by a swift crash— that is the signal for harvesting.
Second rule: Rapid fall, slow rise, don’t catch the bottom.
A small rebound after a sudden crash is often an illusion before unloading. Don’t be deceived by the illusion that 'it can’t drop any further'; the market specializes in exploiting lucky thoughts.
Third rule: High volume at a peak is not necessarily bad; lack of volume is the most dangerous.
Volume indicates that the game is still ongoing; no volume means the main players have left, and the market is left with air.
Fourth rule: Don’t act impulsively on volume at the bottom; look for sustainability.
A single day of explosive volume does not indicate a start; continuous volume, especially after consolidation, is the true signal for building positions.
Fifth rule: K-lines are appearances; trading volume is the truth.
Coin prices are merely projections of emotions; understanding volume is what truly means understanding the market.
Sixth rule: The highest practice is 'nothingness.'
Without obsession, one can wait with an empty position; without greed, one can dare to take profits; without fear, one has the courage to enter the market.
Controlling emotions is harder than understanding trends.
In 8 years, from blind to composed, I have exchanged 2,920 days for a conclusion:
The ones who really make money are never the smartest but the most patient.
You lack no opportunities; you only lack direction.
A single tree cannot make a boat, and a solitary sail cannot go far! In the cryptocurrency world, if you do not have a good circle, or insider information, then I suggest you follow along; Sister Anxin will guide you to shore, and you are welcome to join the team!!!
