I have an old friend, he is from Fujian, 38 years old this year,
Usually honest and low-key, his family has three houses, one for self-use, and two for family and tenants.
He has been in the cryptocurrency circle for five years, starting with an initial capital of 200,000 to reach a level of 50 million.
Not relying on insider information, not relying on luck, and certainly not a technical genius.
He often says a phrase:
"I make money because I am stupid enough—stupid enough to only do simple things."
I will share his summarized '6 major trends in the cryptocurrency circle'.
It's not a secret, not a trick, just a way for beginners to avoid some pitfalls and pay less tuition.
One, rises quickly, falls slowly: big funds are quietly accumulating
If you see the market 'soaring up',
but the adjustment is slow and can't fall——
This is usually not arrogance, but someone is quietly taking over.
Rising fast, adjusting slowly, essentially:
The volume needed for rise is low
The callback has funds dragging behind
The chips are being steadily absorbed
In simple language:
Someone is quietly collecting, don't panic because of a short decline.
(Of course, it doesn't mean it will definitely rise, it just indicates a strong chip structure.)
Two, falls quickly, rises slowly: someone is running away
This type of trend is easy to recognize:
The price suddenly drops sharply,
but the rebound is slow like an old cow.
Usually indicates:
Someone is anxious to unload
retail investors are imagining bottom fishing
The more it falls, the scarier it gets; the more it rises, the weaker it becomes
This is not 'cheap', it might be 'unwanted'.
In plain language:
When others run, don't rush in.
Three, look at volume at the top: if there's volume it might continue, if not you should run
Top movements must be viewed with volume, not just red and green:
Volume at the top: indicates both bulls and bears are fighting, might hold for a while
No volume at the top: can't go up, can't pull, that likely means it will stop
What is volume?
it's the market's true attitude.
Four, one volume at the bottom doesn't count, multiple volumes are reliable
Many novices see the sudden volume at the bottom and shout 'the bottom has arrived!'
Actually, that's just 'possible'.
The truly reliable bottom is:
Continuous volume
continuously has funds entering
Continuous support
It's not a sudden 'fake move'.
In plain language:
The bottom needs to be confirmed repeatedly, it's not just what you say it is.
Five, trading coins is not about K lines, it's about emotions
A good friend often says a very practical thing:
The fundamental of market rise and fall is people's hearts.
The K lines you see are drawn by these psychological factors:
Fear → Decline
Excitement → Rise
Panic → Plunge
Frenzy → Surge
Announcements, good news, news...
are all catalysts for emotion.
The sooner you understand 'emotion', the less likely you are to be a victim.
Six, 'nothing' is the highest: can wait, can endure, not greedy, not afraid
A good friend can go from five digits to eight digits, just because he did one thing:
Will hold cash.
He can achieve:
If there's no opportunity, do not act
there's an opportunity to wait for confirmation
not greedy, not gambling, not impulsive
He often says:
'Only those who can wait are qualified to enjoy the big market.'
The more excited, the easier to be impulsive; the calmer, the easier to make money.
Lastly, I want to say: the biggest enemy is not the market, but yourself
Every moment in the crypto world that makes you lose money,
is not because of the market, but because:
Want to make quick money
Unwilling to stop loss
Fear of missing out
Acting impulsively with emotions
Dare not hold cash
dare not slow down
You will never win against the market,
but you can choose not to go against your own emotions.
The road in the crypto world is long,
there are fluctuations, risks, and opportunities.
If you want to go far, remember three things:
calmness, patience, rules.
Those who can achieve these three points,
will eventually find their own rhythm.