Let me ask a heart-wrenching question: who hasn't been an 'emotional puppet' in the crypto circle? When the price goes up by 20%, you panic and run away overnight; when it drops a bit, you rush to buy the dip, and in the end, your principal is reduced to a fraction, yet you comfort yourself with 'bad luck'?
I am Old Yang, an analyst who has been deeply involved in the cryptocurrency market for 7 years. Don't think that I can now steadily hold profits and look at the market calmly—7 years ago, I was still in the dormitory of an electronics factory in Pixian, Chengdu, struggling over whether to add an egg to my 10 yuan lunch box, with a monthly salary of 4000 yuan. It took me three years of frugality to save up 150,000 yuan in principal, fully intending to change my situation through the cryptocurrency market, only to be repeatedly pressed to the ground by the market as soon as I entered.
Now I hold two fully paid houses, with account returns steadily increasing. It's not based on inside information, nor is it luck; it's all hard-earned practical experience gained after three major setbacks and real monetary losses. Today, I will share from the heart about the three pits that beginners are most likely to fall into, as well as the 'life-saving logic' that I still use—after all, in the crypto circle, staying alive is 100 times more important than making quick money!
The first pit: treating 'main force washing' as 'the end of the world', panicking and missing out on the doubling market.
When I first entered the market, like all beginners, my mentality was more fragile than glass. The first crypto asset I bought rose by 20%, and just two days later it started to pull back. I was so scared that I lost my mind, my head was full of 'the principal is going to disappear', and I panicked and sold everything. Guess what happened? Less than three days after selling, the asset surged by 50%! I looked at the K-line chart, slapped my thigh until it went numb, and wished I could slap myself.
Here I must insert my core viewpoint: in the crypto market, a slow decline after a sharp rise does not equal a peak; it's very likely that the main force is 'washing retail investors'. The most common mistake beginners make is treating short-term fluctuations as a trend reversal, being led by emotions. Later, I summarized a judgment criterion: if after a sharp rise, there is only a slow pullback and there is no cliff-like drop in trading volume, it is highly likely that the main force is forcing timid retail investors to hand over their chips. Stabilizing your mindset and enduring it often leads to pleasant surprises. I later relied on this judgment; after a certain asset surged by 30% in one day, I withstood the subsequent small pullback and calmly exited before the flash crash, avoiding a 40% drop—this operation directly helped me evolve from an 'emotional novice' to a 'rational observer'.
The second pit: blindly believing in 'popular targets', ignoring the deadly signal of 'high position and cold场'.
After suffering losses the first time, I thought I had learned to 'withstand volatility', only to stumble again on popular assets. At that time, a hot crypto asset was oscillating at a high position, and I looked at the previous increase and thought, 'It can push up again', completely ignoring that the trading volume had plummeted, and the market was as deserted as an unattended vegetable market. What happened? Within a week, the asset price halved, and my 30,000 yuan principal was lost; during that time, I didn't even dare to add an egg to my lunch.
Here I share my ironclad rule of practice: high-level oscillation is not scary; what is scary is the 'volume gap'. I have always believed that while the prices in the crypto market can be manipulated, trading volume cannot deceive people. If there is sustained trading volume at a high level, it indicates that there is capital taking over and room for speculation; but if the volume is as stagnant as a dead pool, it means that the main capital has quietly withdrawn, leaving only retail investors taking each other's positions. If you don't run now, are you waiting to be deeply trapped?
The third pit: treating 'sharp declines and rebounds' as 'buying opportunities', entering heavily only to be stuck for half a year.
After the lessons from the first two times, I began to study K-lines but still couldn't avoid the 'bottom hunting trap'. Once, a certain asset dropped by 25%, then rebounded by 10%. I was excited, thinking 'the bottom has arrived', and directly invested heavily. But as soon as I entered, it started to decline steadily, and it lasted for half a year. During this time, watching the numbers in my account made my scalp tingle, and I lost the sense of security I had during my time in the electronics factory.
This is also what I want to repeatedly emphasize to beginners: rebounds after sharp declines are very likely 'bait to induce buying', and the true bottom is never confirmed by a single rebound. My judgment criterion is: you must wait for the asset to undergo a round of shrinking consolidation, and then continuously see three days of gentle volume increase with gains, which is a relatively certain entry signal. Last year, after a certain mainstream crypto asset was stagnant for two months, this signal appeared. I decisively entered the market, and in six months my returns tripled—this is not luck; it's the confidence given by signals.
Now, I no longer do the foolish thing of 'chasing highs and selling lows'. The logic of trading boils down to two things: watching volume and not being overly serious. Volume is the 'barometer' of funds, helping you distinguish between true and false trends; not being overly serious is the 'amulet' of mindset, accepting the uncertainty of the market so as not to be enslaved by emotions. I never go fully invested, nor do I go fully empty; I always keep a portion of funds on hand, waiting for those 'certain signals' to appear—in the crypto circle, slow is fast, and stability is the key to winning.
To be honest, if you are still struggling in the crypto circle, losing sleep and feeling anxious over price fluctuations, and even losing money without knowing where the problem lies, stop pondering aimlessly. Follow me if you currently feel helpless and confused in trading, and want to learn more about the crypto world and first-hand cutting-edge information.
