In the crypto world, those who survive often do not rely on luck but possess a deep understanding of market operation principles.

I’ve been in this circle for 12 years, experienced 16 liquidation events, and at my worst, owed 600,000 yuan, to the point where I’d hesitate for a long time before eating a bowl of beef noodles. Those days were really tough.

But now, the situation is different. Through years of exploration and practice, I’ve earned my first 60 million. This is not bragging, but a real achievement.

Someone asked me what my secret is, and my answer has always been: there’s nothing mysterious about it, just understanding how the market works. Contracts are not some mystical thing either; the fundamental difference between those who make money and those who lose money lies here.

Where do many people go wrong? They bury themselves in studying various K-line patterns, stay up late watching the charts, trade frequently, and look very diligent. But in reality, they’re just spinning in the technical layer, never thinking about strategy.

The market’s operation actually follows a few simple cyclical rules:

**Trend**. When a profit opportunity appears, the profit effect attracts more money, creating a positive feedback loop. This is the primary driving force.

**Inertia**. Once a trend is truly formed, the buying or selling power will reinforce itself, allowing the trend to continue. The market’s direction is like a train in motion, with strong inertia.

**Reversion**. But once profits have accumulated to a certain point, someone will think about taking profits. A large number of exit orders flood in, and the price begins to pull back. This is inevitable.

**Repetition**. Human nature remains unchanged; greed and fear swing like a pendulum, and the above process repeats over and over.

Making money has never been about predicting whether the next moment will be up or down. Anyone who tries that would have already lost everything. The truly skilled approach is—what stage are we in now? Is it the early stage just beginning the trend, the mid-stage with strong inertia, or the late stage where a correction is due?

If you can distinguish this, you’re essentially mastering the rhythm.

When you stop obsessing over short-term red and green K-lines and instead view the market through the lens of "pattern frameworks," your mindset will change. You won’t fear a crash anymore, nor blindly chase highs. Because what you see isn’t the chaotic splashes of waves, but the true rhythm of the tides.

The real test lies in emotional management. No matter how good the rules are, you need to control yourself and always stay aligned with these principles. There are no shortcuts; you have to fall and suffer losses to truly understand. But once you master it, it will become your most reliable weapon.