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Having navigated the crypto world for 7 years, I turned 6,500 yuan into 400,000 USD through sheer perseverance. I didn't have any insider information, nor did I catch the crazy bull runs. The only secret is a simple, straightforward approach—repeatedly practicing, continuously refining, and becoming more intuitive over time. Even beginners can replicate this mindset.
During these over 2,550 days, I’ve adhered to one core principle—treat trading like a game of leveling up by defeating monsters. Stay patient and calm, gradually honing your skills. Today, I want to share six solid trading insights accumulated over the years, hoping to help you avoid detours.
**Tip 1: Rapid rises and slow declines indicate someone is secretly accumulating**
You’ll notice a pattern: a sharp surge followed by a slow decline, but the downward speed is much gentler than the upward. This is often a market maker shaking out weak hands. Don’t panic and sell off; that’s not the real top. The true top looks like this—sudden frantic volume spikes pushing prices higher, then a quick "bang"—a waterfall decline that catches retail investors off guard and causes them to buy in at the worst moment.
**Tip 2: Fast declines and slow recoveries are signs of distribution**
After a flash crash, a slow rebound often follows. Don’t be naive enough to think you’ve found a bargain. That’s usually the final blow. Many people think, “It’s fallen so much, where else can it go?” and end up falling for this trap.
**Tip 3: High volume at the top doesn’t necessarily mean the end; in fact, low volume can be more dangerous**
If there’s still volume at high levels, it suggests there’s room for another push. But if the volume suddenly dries up at the top, that’s a real warning sign of an impending crash.
**Tip 4: Don’t rush to interpret volume at the bottom; sustained volume is more reliable**
A single spike in volume might just be bait. The real signal is a period of consolidation followed by several days of consistent high volume—that’s the true accumulation phase.
**Tip 5: Crypto trading ultimately boils down to human psychology, which is all reflected in trading volume**
Candlestick charts show the result, but volume is the thermometer of market sentiment. When volume shrinks, it means traders have lost interest; when volume suddenly surges, real money is flowing in.
**Tip 6: True skill lies in learning to "do nothing"**
Without obsession, be willing to stay on the sidelines when necessary—no greed, no panic. When the setup is clear, act decisively; when it’s unclear, let go of your positions. This isn’t about lying flat; it’s about mastering your trading mindset.
Opportunities in crypto are always present, but what’s lacking is the ability to control your impulses and see the bigger picture. Often, you’re not slow; you’re just blindly stumbling in the dark.
Master these principles, and you’ll find trading becomes simpler. No more chasing every rise and fall, no more emotional rollercoasters from short-term volatility—profit and loss will become more stable.