Don't be a 'leek transport machine' in the crypto circle anymore! I dare say that 80% of new users stumble because of this vicious cycle: when they see the green bars crashing down, they panic and cut their losses; then, the price rebounds right after they sell; when they see the red bars soaring, they rush to chase, only to get pressed down as soon as they enter. In the end, their account balance is cleaner than their face, and they wonder, 'Why can others profit while I end up losing?'
To be honest, the crypto market seems chaotic, but it actually hides unchanging rules. The following 9 phrases are insights I've gained after more than 300 sleepless nights and losing six figures. If you understand and follow them, at least you can avoid 90% of the pitfalls!
One, sideways consolidation hides gold; if it explodes vertically, run away quickly.
The most common thing in cryptocurrency is sideways fluctuations, which can last from a few days to a few weeks. Many people find it frustrating and cut their losses—this is a big mistake! Sideways movement essentially means a tug-of-war between bulls and bears. Once it stabilizes, the market is likely to choose a direction. At this point, keep an eye on key support levels; when it retraces, enter with a light position, which is 10 times more reliable than blindly chasing. But if it suddenly rockets up vertically, don’t be envious; such price movements based solely on emotions often lead to you being the one left holding the bag. I saw someone chase such a spike last year and ended up being stuck with a 30% loss on the same day, with no place to cry.
Two, when the entire network is bullish, it is the day you should remain calm.
This trick works every time! If one day your social media, crypto communities, or even colleagues who usually don’t trade coins tell you, 'This coin is going to take off, it will double,' then you need to be on high alert. The market is always 'a few people make money, and most people hold the bag.' When everyone thinks they can make money, the risk is already lurking behind. Real experts quietly cash out before the crowd gets excited, and by the time ordinary people react, they can only hold the bag.
Three, a small upward movement is healthy; a large spike needs caution.
You can tell whether the market is stable by looking at candlestick patterns. If there are several consecutive days of small upward movements, rising 3%-5% each day, this is a healthy 'slow bull' rhythm, indicating that buying pressure is very stable, and you can hold on with peace of mind. But if several large upward candles suddenly appear, with a daily rise of over 10%, or even two or three consecutive days of such, then you need to be cautious—this is mostly the main force 'pulling up to offload,' waiting for retail investors to come in and hold the bag. Remember, slow rises last longer, while sharp rises must be followed by corrections.
Four, don’t enter the market without washing盘; if there is no turnover, don’t go in.
Some people always think 'a coin that has skyrocketed can definitely rise even more,' and rush in only to be stuck. Let me tell you, there is no myth of 'continuous surges' in the crypto circle; even the strongest coins, after a surge, must 'wash the盘'—flush out the weak hands and bring in a new wave of chips. An increase without washing盘 or turnover is like a house built on sand; it will collapse with a push. If you enter at that time, you are just taking on the role of the bagholder. So when you see a spike, don’t rush to enter; wait for it to retrace to key levels and confirm stability before you enter, maximizing your safety.
Five, a sharp drop is not scary, a slow drop is deadly.
When prices fall, don’t panic; first determine whether it is a 'sharp drop' or a 'slow drop.' If there is a sudden, sharp drop with no volume, falling quickly and violently, it is likely that the main force is 'washing the盘,' scaring off cautious retail investors. Such drops generally rebound quickly, so don’t rush to cut losses. But if it is a slow decline, falling a little each day with increasing volume, then be careful—this indicates that the chips are genuinely fleeing, and the main force is running; why are you still holding?
Six, if it breaks the key line, turn around and leave.
The most common mistake beginners make is having a 'gambling mentality'—when the price breaks below key support, they still think 'it can bounce back' and stubbornly hold without cutting losses. Let me tell you, key lines like the daily MA20 moving average are the 'lifeline' of the market. If it breaks, it indicates a change in trend, and the market is no longer 'your friend.' At this point, don’t hesitate; exit and observe. Even if it bounces back later, it's not a loss; preserving your capital is more important than anything else. Our crypto circle is not short of opportunities; what's lacking is the discipline to avoid reckless trading.
Seven, follow the trend to make big money, focus on small fluctuations to incur small losses.
Many people stare at the 15-minute line or the 1-hour line, selling at the slightest rise and cutting losses at the slightest drop, busy as a spinning top, only to end up losing money. This shows a lack of understanding of the importance of 'the bigger trend'! What truly determines market direction is the daily, weekly, and monthly cycles. If the larger cycle is an upward trend, it doesn’t matter if there is a slight short-term dip; holding on will earn you money. If the larger cycle is a downward trend, no matter how much you try to catch the bottom, you are just giving away money. The people I know who can make money long-term are those who focus on the larger cycles and don’t get caught up in minor fluctuations.
Eight, if there is no volume in an upward movement, it is all just trickery.
Whether the price rises or not cannot be judged solely by candlestick patterns; you have to look at volume—that’s the 'fundamental strength' of the market. If the coin price appears to be rising but the volume does not keep pace, or even decreases, that is a 'false rise'; the main force is just putting on a show for you, waiting for you to chase in. Only when the price rises with increasing volume does it indicate that real money is entering the market, and such increases are trustworthy. Remember, volume does not lie; any upward movement without volume is just a trick.
Nine, low volume signals a major bottom; high volume indicates a reversal.
Many people always think about 'buying at the lowest point,' constantly asking 'where is the bottom?' Let me tell you, the bottom is never called out; it is walked out. When the price continues to hit new lows but the volume decreases, and no one in the market dares to speak—not even the street vendors—this is when opportunities arise—a decrease in volume indicates that selling pressure is almost gone, and it can't go down much further. But don’t rush to enter; wait for the 'signal of increasing volume' during an upward movement, which indicates that money is beginning to enter the market, and the trend is about to reverse; that’s when it’s safe to enter.
In fact, crypto trading is not that complicated; you don’t need to rely on flashy indicators. Memorizing these 9 phrases is more effective than anything else. These are not things I copied from books; they are lessons learned from real monetary losses that can definitely help you avoid three years of detours.
I will share more practical tips later, such as 'how to judge whether the main force is washing the盘 or offloading' and 'which coins beginners should practice with.' These are solid insights. Follow me, and you won't get lost on the next update; let's make steady profits in the crypto circle together!
