In 2017, I entered the cryptocurrency world with 3000u, and now I have rolled it up to 26 million.
Over the past few years, I've experienced liquidation, drawdowns, sleepless nights, and anxiety. The pitfalls I've encountered and the tuition I've paid have ultimately led me to understand six iron laws.
For every law I comprehend, I can lose 100,000 less; truly grasping three of them can help me avoid 90% of traps.
First law: Rapid rises and slow declines, don't panic sell.
Most of the time, that is not a peak, but rather the market makers are accumulating. What you should really fear is a rapid surge followed by a quick crash—that is the harvesting signal.
Second law: Rapid declines and slow rises, don’t try to catch the bottom.
A small rebound after a flash crash is often a false signal before distribution. Don’t be deceived by the illusion of “it can’t fall anymore,” as the market specializes in taking advantage of lucky thinking.
Third law: High volume at peaks is not necessarily bad, no volume is the most dangerous.
Volume indicates that the game is still ongoing; no volume means the main force has left, and the market is left with air.
Fourth law: Don’t act impulsively on volume at the bottom; you need to see continuity.
A single day's explosive volume does not mean a start; continuous volume, especially after consolidation, is the real signal for building positions.
Fifth law: K lines are appearances, trading volume is the truth.
Coin prices are merely projections of emotions; understanding volume is what truly indicates market trends.
Sixth law: The highest form of cultivation is 'nothingness.'
Without obsession, one can wait with a clear mind; without greed, one can take profits; without fear, one can have the courage to enter the market.
Controlling emotions is harder than understanding trends.
In 8 years, from blind to calm, I have traded 2920 days for a conclusion:
The ones who truly make money are never the smartest, but the most patient.
You don’t lack opportunities, you just lack direction.
A single log cannot form a boat, a lone sail cannot travel far! In the cryptocurrency world, if you don’t have a good circle, and you lack first-hand information from the crypto world, then I suggest you follow along. Sister Bing will help you get ashore; welcome to join the team!!!