5 years in the cryptocurrency world, from 5000 yuan to tens of millions, I only relied on a very simple method
I am 35 years old this year, from Guangdong, and have been trading cryptocurrencies for 5 years.
When I first entered the cryptocurrency world, my account only had 5000 yuan in capital. At that time, I knew nothing, just like most people, following market trends and trading based on news, and I also paid a lot of tuition.
Over the years, I have slowly explored and now my funds have reached tens of millions.
Many people think I have some insider information or a powerful trading system. In fact, I don't have any of that.
I have survived to this point solely relying on a very simple method: observing volume, analyzing sentiment, and taking things slowly. Over these 5 years, I have summarized 6 of the most practical rules.
If you can understand one, you might save yourself tens of thousands.
If you can truly adhere to three of them, you have already surpassed the vast majority of retail investors.
First rule: Rapid increases followed by slow decreases likely indicate that the big players are accumulating.
Many people, seeing the price of a coin suddenly surge, become afraid and think it will drop immediately, and thus rush to sell.
However, if after a rapid increase, the price only slowly pulls back, and the pullback is relatively gentle, this situation often indicates that it’s not a peak, but rather that the main players are washing the market and accumulating.
Second rule: Rapid decreases followed by slow increases mostly indicate that the big players are retreating.
Some coins may suddenly crash, with a big red candle dropping straight down, followed by the price slowly crawling back up.
Many retail investors seeing this trend think, "It's dropped so much already, it should be nearly at the bottom."
Third rule: High volume at the top doesn’t necessarily mean it’s the end; low volume is what’s dangerous.
Many people see the price rise to a high level and immediately think it will crash.
But if the market's trading volume continues to increase during this phase, it indicates that the capital sentiment is still present, and the market can sometimes push higher again.
Fourth rule: Don’t get excited about volume at the bottom; sustained volume is what’s reliable.
Many people see a huge volume spike at the bottom and think the big players have entered, rushing in to buy the dip.
However, many times, this kind of one-time volume spike is just bait.
When an individual is exploring in the market, it's easy to get lost.
If someone can help you see the rhythm clearly and avoid pitfalls, many detours can actually be avoided.
The journey of trading is inherently long, and there's no need to bear it alone.
I once stumbled around in the darkness of the cryptocurrency world, and now I finally hold the "light" in my hands. This light continues to shine, it just depends on whether you are willing to follow Sister Zhao.