Behind the stop-loss order in the dead of night lies the true code to not being eliminated by the market.
At three in the morning, the light from my phone screen hurt my eyes. Another trembling message came through: “Teacher, I really can’t handle this liquidation, I want to quit the circle.”
I didn’t rush to comfort, just replied: “Send me the screenshot, now.”
The familiar plot unfolds again — a screenshot of a loss of $18,000 has come through. I quietly pulled out my trading records from 2018: the entire process of dropping from $20,000 to less than $3,000, and then slowly climbing back to seven figures. Then I typed a line: “Don’t give up yet, let’s review for three months. If you still want to curse me then, go ahead.”
Five months later, he sent a screenshot of a profit of $130,000 with just two simple words: 'Thank you, teacher.'
The protagonist of this story may change, but the market's rules have never changed. Today, I will share these five rules that have allowed me to survive in the crypto market with you.
1. A sharp rise followed by a slow drop is the main force 'washing out' positions, not unloading.
I clearly remember that in April this year, when ORDI skyrocketed by 50% in two days, followed by a prolonged drop of 30% over two weeks, that friend almost asked me every day: 'Should I cut losses?'
My answer was very firm: 'A slow decline is just a washout, not a disaster.'
Sure enough, in May, ORDI's volume broke out and surged by 2.6 times, directly doubling his account.
The key point is: when the price rises rapidly followed by a slow decline, and trading volume gradually shrinks, it usually means that large funds are not leaving the market but are clearing out indecisive holders. True unloading is accompanied by rapid declines with large transactions.
2. Don't rush to 'bottom-fish' the day after a crash.
There is an old saying in the market: 'Don't catch a falling knife.'
On the day of the 312 incident, he was itching to bottom-fish, so I directly told him to go for a run. When he came back, the market had dropped another 15%. Later, he treated me to a coffee to express his gratitude.
Why shouldn't you rush to bottom-fish? Because after a sharp decline, the market sentiment needs time to recover, and panic selling often doesn't end in a day. Waiting for the market to stabilize before getting involved is much safer than trying to catch the lowest point.
3. Low volume at high levels is a signal of 'insufficient fuel.'
When SOL rose to $120, the trading volume shrank by 30%. We immediately decided to liquidate within 30 minutes.
The next day, SOL dropped by 18%, and his account thus saved $12,000.
Low volume at high levels is a dangerous signal: when prices hit new highs but trading volume does not follow, it indicates insufficient willingness to chase higher, and upward momentum is exhausted. It's like a sports car with insufficient fuel, looking glamorous yet not going far.
4. Sustained volume at the bottom is the real opportunity.
After Blast dropped 80%, a long bullish candle appeared, and he was once again itching to enter.
I told him: 'Observe on-chain daily active data; consider it only after 12 consecutive days of growth of over 10%.'
He followed the advice and positioned himself the night before the public offering, resulting in a doubling in two hours. Later, he sent me a red envelope, which I declined, saying, 'Buy something nice for yourself.'
Single volume spikes may be a 'dead cat bounce'; only sustained volume indicates continuous capital inflow. The real bottom is not a V-shaped reversal but the construction of a solid base.
5. Look at consensus before trading coins, and check volume for consensus.
I repeatedly told him: 'K-lines can be manipulated, depth can be faked, but trading volume is genuinely piled up with money.'
Now he has developed the habit of first looking at the 24-hour trading volume at market open, then checking the price. His catchphrase is: 'If volume doesn't move, price is just acting.'
Trading volume is the most direct manifestation of market consensus. Without the support of trading volume, any price increase is a castle in the air.
Survival is more important than victory.
In these five months, he climbed from a near-zero state of $20,000 to $130,000, relying not on magical indicators or insider news, but on these five simple survival rules.
Many people ask me if I take positions; my answer remains the same: 'I light the lamp, those who are willing follow.'
The crypto market is never short of opportunities; what it lacks are traders who can survive long-term. The core of the five rules is actually just one: control risk and live longer.
As long as the lights are on, the road is there. In this crypto jungle, survival is not the ultimate goal, but it is the prerequisite for achieving everything.
In the end, you will find that the essence of successful trading is not to predict the future but to manage the present well—manage the risk of each trade, cherish every bit of capital, and then wait for the return of time.
Do you think these experiences are helpful to you? Feel free to share your trading stories. Follow Xiang Ge to learn more first-hand information and accurate knowledge in the crypto circle, becoming your navigation in the crypto world; learning is your greatest wealth!
