From bankruptcy and divorce to financial freedom: (including 6 iron rules of price and volume)
If you are always anxious about the drastic ups and downs, maybe it's time to try a 'foolish' approach.
1. Starting point: a divorce and a 'bet' of 20,000.
At the age of 29, my life hit rock bottom: divorce, debt, career setbacks... With only 20,000 in hand, I plunged into the most frenzied cryptocurrency market at the time. Without a financial background, I didn't understand technical indicators, and I couldn't even tell the difference between Bitcoin and Litecoin. But I knew this might be the only chance to turn things around.
At that time, the cryptocurrency world felt like a wilderness survival game: some people became overnight millionaires thanks to mining machines (like Ji Nuo, an Yi ethnic boss in the deep mountains of Sichuan, who borrowed 900,000 to buy mining machines and held on to Bitcoin); others were forced to deliver food due to leveraged liquidation (like programmer Yang Lin, who owed 1.2 million after trading with 20x leverage). And I was just a 'newbie' who couldn't even understand candlestick charts.
2. Turning Point: On May 1, 2021, Ethereum made me 'come alive'
In the first 5 years, I experienced liquidation, stepped on zero-value coins, and encountered exchanges running away. In my most desperate times, my account shrank by 90%, and I barely made a living through part-time delivery jobs. But fate played a joke on May 1, 2021: Ethereum soared from $1,500 to $4,380, and I made a net profit of 4.2 million in a single day.
At that moment I realized: the crypto world is not a casino, but a game of hunters. The ones who get rich are not the all-in players, but those snipers who practice 'dumb methods' repeatedly. For instance, Shu Qi from Peking University achieved financial freedom before graduation through quantitative trading models; whereas Xu Jing, who chased trends, lost 80 million in the EOS crash.
3. Key Insights: My 6 rules of volume and price (revised version)
After 8 years of trial and error, I summarized a set of anti-human strategies called 'Volume-Price Game Theory'. The core is just one sentence: Market sentiment is hidden in the folds of trading volume.
Accumulation signal: Rapid rise and slow decline ≠ unloading
A sharp rise followed by a slow decline may indicate the main force is accumulating. For example, when Bitcoin surged from 6,900 yuan in 2023, the platform created a false appearance of selling pressure by inflating volume, while it was actually low-position accumulation.
Do not catch falling knives; rebounds are traps
Rebounds during crashes are like 'sugar-coated shells'; in 2018, Bitcoin's daily trading volume shrank from 450 billion to 80 billion, with most bottom fishers getting buried.
Low volume at high levels is more dangerous than high volume
Prices are flat but volume continues to shrink, indicating capital withdrawal. Refer to the long-term shrinking fluctuations before Bitcoin fell below 60,000 in 2024.
Bottoms require a second confirmation
A single instance of increased volume may be a trap; a true bottom requires 'shrinking fluctuations + gentle volume increase', such as Bitcoin slowly increasing in volume after hitting bottom in 2020.
Volume is the cause, K-line is the effect
Exchanges can inflate volume to falsify K-lines (e.g., self-buying and selling programs inflating volume 20 times in one night), but real demand can be seen by the number of active addresses on the chain.
Mindset to 'nothingness'; only those who dare to be in cash positions are true kings
In the crypto world, 90% of the time is in fluctuations, like a hunter waiting for a sure shot. Early big players like Chen Feng can hold onto wealth simply because 'money is made in bull markets, and books are read in bear markets.'
4. Truth: Why do most people fail to make money?
Blindly chasing 'divine fish' romance: Early mining pool founders gave their wives Bitcoin blocks as wedding gifts, but ordinary people often become cannon fodder by imitating them.
Misunderstanding 'Decentralization': Although Bitcoin's algorithm is fair, exchanges can manipulate prices, making it necessary to be wary of platform volume inflation traps.
Over-reliance on cycles: Some people achieve freedom after enduring 4 phases, but more people fall in the 2nd phase (like Chongqing girl Xu Jing, who suffered a tragic defeat after cashing out and going all-in).
5. Conclusion: Written for you, who are equally lonely
Now my assets exceed 50 million, but I still study on-chain data every day. In the crypto world, there is no 'one trick'; only continuous evolution:
A humorous point: Some say a day in the crypto world is like a year in the real world. I think it feels like not daring to buy during daily discounts similar to Double Eleven, and being unable to afford it when prices rise.
Ultimate advice: If you are constantly slapped in the face by the market, why not change your mindset: treat trading cryptocurrencies as running a small shop; stock up when the market is good, and clean the counter when the market is poor. Surviving is more important than getting rich quickly.
(This article's views are for reference only, the market has risks, and decisions should be made independently. Want to chat about trading mentality?
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