Do beginners in the crypto market often fall into a loop: they can't help but chase when they see a straight line upward, and just as they enter, it starts to pull back; when they can't hold on any longer and cut their losses, it secretly rises back? As someone who has been in the game for 5 years and paid five-figure tuition in math, what I share with you today is not 'esoteric predictions,' but practical iron rules forged with real money—remember these, and at least you'll avoid taking 3 years of detours!
First, let me point out the easiest pitfall: don't be a 'chasing the rising special forces,' be a 'waiting for the pit hunter.' I've seen too many beginners whose eyes light up when they see a certain cryptocurrency rise 20% in a single day, fearing they might miss the 'wealth code.' As a result, they jump in and become 'the ones standing guard at the mountain peak.' Last year, a fan didn't listen to advice and chased a project that had three consecutive days of large gains, only to face a 15% pullback on the same day and came crying asking what to do—this is a typical case of being 'led by emotions.'
Where are the real opportunities? Actually, they lie in 'when the market is quiet.' When the market consolidates for a week or two or retraces to key support levels, this is the time when you can take your time to study; but when everyone in the community is shouting 'hundred times coins' and 'just go for it,' it is likely time to take profits. In the bull market of 2021, I took profits on a mainstream coin because I noticed that even the vegetable-selling aunt in the neighborhood group was discussing crypto, and decisively liquidated — later, I avoided a 40% retracement, and I still feel scared when I think about it.
Let me teach you a simple but effective method to read 'K-line signals': a series of small positive candles indicate 'steady rise,' while a cluster of large positive candles suggests 'braking is needed.' It's like climbing a mountain; taking one step at a time indicates stable stamina; suddenly rushing up is likely to lead to exhaustion quickly. Also, there is a difference between rapid rises and rapid falls: after a rapid rise, do not heavily invest if there is no deep retracement, as an accelerated main wave is often 'the last surge'; rapid declines are mostly due to short-term emotional selling, while slow declines indicate real unloading — last year, there was a meme coin that fell 3% daily but had increasing trading volume, I urged my followers to withdraw quickly, and later it dropped 60%, and it still hasn't recovered.
The relationship between volume and price is indeed a 'mirror to reveal the truth': when prices rise but trading volume shrinks, it indicates that the main force is 'luring buyers,' just like a stage without support, looking lively but about to disperse; conversely, after a volume decrease and a new low, a sudden increase in volume indicates a 'bottom signal,' like the first breeze of spring after winter, worth paying close attention to. Last year, I bottomed out on a certain ecological coin, waiting for it to consolidate with low volume for half a month before entering when it suddenly increased by 5% in volume, later achieving a threefold return — this is the power of 'volume speaks.'
Finally, let me say something from the bottom of my heart: there is no 'get rich overnight' secret in crypto trading, only the awareness of 'avoiding pitfalls.' I also came from 'chasing highs and cutting losses,' having lost money and cursed, only then did I understand that the essence of trading is realizing cognitive value — the deeper your understanding of the market, the more stable the money in your pocket will be. You don't have to memorize these experiences, just ponder over them when looking at K-lines next time, and gradually you will get the hang of it.
Follow me, and next time I will break down 'how to see the main force's movements from long-term charts' for you, ensuring that once you learn it, you will never be a 'bag holder' again! By the way, let's chat in the comments, what is the most painful pit you have stepped into recently? I will help you analyze where the problem lies ~ let’s 'slowly get rich' together in the market, which is better than anything!
