A 37-year-old brother of mine from Nanjing has been through ups and downs in the cryptocurrency world for ten years, using the "dumbest" method to roll his initial capital of over 100,000 all the way to over 50 million.
He doesn't rely on insider information, nor does he gamble on luck; he strictly adheres to a few simple yet extremely effective principles.
Today, he owns four properties: one for personal use, one to honor his parents, and the remaining two for stable rental income. His life is low-key yet full of confidence.
Today, I want to share with you the six survival principles he has summarized over the past ten years, which are more practical than studying hundreds of technical indicators:
1. A strong upward trend followed by a gentle pullback often indicates that the main force is accumulating. If there is a rapid increase followed by a mild correction, it is highly likely that funds are secretly positioning themselves; don’t be misled by short-term fluctuations; the rhythm is key.
2. A sharp decline with a weak rebound usually indicates that the main force is distributing. Once a flash crash occurs and cannot recover, it often means that funds are exiting the market; don’t rush to catch the bottom, as this is when one is most likely to be deeply trapped.
3. High volume at a peak is not necessarily a top; sometimes it is a sprint signal. The real danger is a contraction at the top, which may indicate that the market is nearing its end.
4. A single volume spike at the bottom should not be trusted; continuous volume increases are the true signal. Only repeated and sustained volume can indicate that market consensus is forming.
5. Trading cryptocurrencies is essentially trading human sentiment, not patterns. No matter how complex the technical indicators are, they ultimately point to emotions, and volume is the truest mirror of sentiment.
6. "Nothing" is the highest realm. Without desire, fear, or obsession, one can live a long life. Only by enduring the empty positions can one be worthy of welcoming a truly significant market.
In the end, the biggest opponent in trading is always oneself. Positive and negative news, fluctuations, and ups and downs are merely superficial; what truly determines fate is your emotional control, discipline execution, and stable mindset.
The cryptocurrency market is never short of opportunities, nor is it lacking in risks. Those who can laugh until the end are often not the ones with the sharpest insights, but rather those who live the longest.
Now, the path has been paved—are you brave enough to walk it?