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I've been in the crypto space for 3 years, turning 10,000 into 810,000. It's not luck, but truly treating trading as a craft to refine, understanding the market's temperament, and summarizing 6 core principles. Master one of them, and you can avoid losing tens of thousands; learn three, and you'll surpass 90% of retail investors.
**Rapid rise followed by slow decline is a shakeout, not a reversal**
Many people see the price surge sharply, then start to decline gradually, panicking. In fact, this is the rhythm of the market makers shaking out and accumulating. What does a real top look like? It’s a volume spike pushing prices up, followed by a sudden plunge. If you still try to catch the bottom at that point, you’re basically becoming a bagholder.
**Fast drop followed by slow rebound, beware of main players offloading**
The same applies in reverse. After a sharp decline, the price begins to rebound slowly—don’t be naive to think it’s a buying opportunity. This is actually the process of the main players gradually offloading and suppressing the price. Too many get caught up in the phrase "It’s already fallen so much, what else can happen," only to end up losing money.
**Volume contraction at high levels is a warning sign of an impending crash**
At high levels, the biggest risk is suddenly no trading activity. If there’s still volume support, prices can inch higher; but once trading volume drops sharply at a high level, you must cut losses decisively. This is the calm before the storm. Most likely, a deep correction will follow—there are no exceptions.
**A single spike at the bottom doesn’t count; look for sustained volume increase**
Getting excited over a one-time volume spike at the bottom is often a trap for false signals. What’s the real sign of accumulation? After a period of consolidation, sustained increase in volume indicates the main players are really pouring money in. Only then is it reliable to follow in.
**Trading volume is the thermometer of capital, candlesticks are just the aftermath**
Candlestick charts show the result, but volume reveals the truth. Shrinking volume indicates capital is withdrawing, no buyers; surging volume means capital is flowing in, and the market is heating up. Instead of focusing solely on candlestick patterns, pay close attention to volume movements. Trading based on volume can significantly reduce mistakes.
**The highest trading wisdom: knowing when to be out of the market**
Trading doesn’t mean always being fully invested. Be decisive about going to cash when needed, and act quickly when opportunities arise. Don’t obsess over holding positions for a certain time, nor let FOMO control you. This isn’t about lying flat; it’s about elevating your mindset to another level. Being in cash is also a form of profit—something many people never truly understand in their lifetime.
Opportunities in the crypto space are plentiful, but traps are even more numerous. Instead of groping in the dark alone, find a reliable approach and follow a proven logic. Every step taken this way is genuine progress.