In the cryptocurrency circle, moving from tens of thousands to millions is not an unattainable dream, but it is certainly not blind gambling.
Those who can truly survive and achieve breakthroughs rely on a deep understanding of the market and extreme self-discipline.
The following are the six iron rules I have summarized from practical experience to help you clear the fog and see the direction clearly.
1. Rapid rise and slow fall are typical signals of stock absorption by major players
When the price suddenly surges and then slowly declines, do not rush to cut your losses. This is often a tactic used by major players to wash the market, aimed at clearing out weak-handed retail investors. The real risk signal is "violent surge + sudden sharp drop;" that is when the major players are ready to net in.
2. Rapid fall and slow rise, beware of major players dumping
A slow rebound after a crash may be a trap. Major players often create a false appearance of "the drop has bottomed out" through such movements to lure buying funds. If the rebound lacks volume, be cautious about entering to avoid falling into a deeper correction.
3. High volume at the top is not necessarily a peak; low volume is the most dangerous
High volume at a peak does not necessarily signal an exit; it may indicate a change of major players or capital relay. What truly needs to be warned about is a sudden decrease in volume at high levels, indicating that market liquidity is exhausted, which usually foreshadows an imminent crash.
4. Volume at the bottom needs to be sustained; a single volume bar can easily mislead
A single volume bar at the bottom may be a false move by major players; do not rush to follow up. The real bottom signal is a "gentle and sustained increase in volume" after a period of low volume consolidation, indicating orderly capital accumulation and more stable opportunities.
5. Volume is the mirror of market sentiment
Candlestick charts display prices, while volume reveals the truth. Low volume indicates a quiet market; high volume reflects the struggle of capital. By observing changes in volume, one can gauge market sentiment phases and avoid being misled by short-term fluctuations.
6. The realm of mastery: no obsession, no greed, no panic
No obsession: Do not cling to bullish or bearish positions; go with the trend and follow the breakouts;
No greed: Refuse to chase after rapid increases or sell off in a panic; take profits in batches and do not be greedy for the last cent;
No panic: Stay calm during crashes, see the support levels clearly before taking action, and avoid emotional sell-offs.
The money in the cryptocurrency circle never belongs to those who are just lucky, but to those who can see through the rules and stay true to their principles. Using rules to counter human nature and patiently waiting for the right moment is the core path to moving from small capital to the million level. @luck萧
