Trading Wisdom: 10 Basic Rules

1. After making a lot of money, stay calm. Luck is limited.

2. There is only one leader in any industry; the rest are followers. Buy the best one.

3. Trading volume best reflects the true state of the market. An unusually large trading volume often signals an impending market reversal.

4. Do not try to catch a falling knife. In a continuously declining trend, there is no bottom.

5. Three coins are enough. Over-diversification in investments does not make you money.

6. Once a trend is established, it rarely changes easily.

7. Rapid rises and slow declines indicate distribution; rapid declines and slow rises indicate accumulation.

8. When prices reach a high level, if there is suddenly a huge trading volume, it usually means the upward trend is about to stagnate, and the peak is near.

9. Learn to stay calm and wait patiently. Opportunities always favor those who wait patiently.

10. Trading should be planned; do not buy and sell arbitrarily.