My 39-year-old sister from Hangzhou, in the cryptocurrency circle for 7 years, has steadily rolled her initial capital of 20,000 into over seven figures using the most 'clumsy' and inconspicuous methods in the market. Now she owns 4 properties: one for herself, one to settle her parents, and two for stable rental income. Every year, the rental income allows the whole family to live comfortably.
I asked her: How did you do it?
She said: There are no secrets, just adhering to these eight simple principles to the extreme for 8 years without breaking any of them.
Rule One: Rapid rise and slow fall signify the main force is 'eating'
After a rapid price surge, if a slow and gentle pullback occurs, don’t rush to escape the peak. This often indicates that smart money is quietly accumulating during the fluctuations. The real risk signal is a 'free-fall' drop after a significant volume surge.
Rule Two: Rapid drop and weak rebound indicate the main force is 'burying'
After a price flash crash, if the rebound is soft and staggering, this is usually not an opportunity but a trap. It shows that funds are withdrawing, distributing their last chips. Don’t fantasize about bottom-fishing; this is the easiest time to take the last hit.
Rule Three: Volume at high levels continues the game; no volume at high levels means collapse is imminent
When prices rise to high levels, if the trading volume remains active, it indicates a fierce battle between bulls and bears, and the market may still experience fluctuations. When prices are high and trading volume suddenly shrinks, it often means that the main force has completed distribution, and a decline is about to begin.
$SIREN
Rule Four: A single day's volume spike at the bottom is bait; sustained volume is the real trend reversal
A sudden large bullish candlestick at the end of a downtrend is often a 'bait' to attract retail investors to follow suit. The real market bottom requires 'volume contraction consolidation + continuous gentle volume increase' to confirm, indicating that consensus is slowly forming and funds are patiently laying out their positions.
Rule Five: The ultimate target of trading is the human heart
All K-line patterns and technical indicators ultimately point to the collective emotions of market participants. Trading volume is the most real and direct reflection of this greed and fear. Understanding volume means truly understanding the market trends.
A collection of those who can't understand the market and keep stepping into pits!
Follow Sister Qing, and I'll help you avoid 90% of the pitfalls, steadily making money~