To this day, I have been in the cryptocurrency market for 10 years. I lost more than 700,000 of my initial 1 million in the first three years! Do you know how devastated I was? The house I wanted to buy back then has appreciated countless times! Later, after much reflection, I decided to start over, truly unwilling to give up. From the fourth year, I started again with the remaining 300,000, slowly accumulating my profits, and I can steadily earn every year!
Now I have turned the remaining 300,000 at that time into more than 34 million, which can completely stabilize profits. Over the years, I have summarized 10 iron rules that must be followed and a set of my own trading strategies, which I will share with you today! I sincerely hope that friends who are confused in the cryptocurrency market can absorb this and take fewer detours; otherwise, the cost of hitting the south wall is very high! Today, I will give you some valuable insights. The words are short, but each one strikes at the heart. After reading, you will have an epiphany!
First, think of a question: does such a powerful market maker have any weaknesses for retail investors? Yes, this weakness is the market maker's throat, and what we need to do is to hit the target precisely. When a market maker enters a cryptocurrency to start collecting chips, that cryptocurrency is unlikely to create new lows. You will know: Oh, this market maker has started to dive in. Individual occasional events may create new lows, but they will quickly pull back. When the main force has collected enough chips, they must do one thing: start to push the price up. Even if a large number of retail investors enter at this time, the market maker has to push the price up because they have enough chips. At this moment, what we need to do is to ride this wave and enjoy the benefits.
The previous bottom-fishing position is precisely inserted at the market maker's position: the throat. So when does the trend start? When a cryptocurrency no longer creates new lows, it indicates that the market maker has entered, and the upward trend has begun. This is the trend. Remember, once a trend starts, every drop provides an entry opportunity that must not be missed.
During the upward process, many retail investors will follow the trend. The purpose of the downturn is to wash positions, but in reality, you often chase at high points during a rise and cannot bear the losses at low points during a wash, cutting your losses. Take a look at your trading records; it’s simply laughable. Remember, in an upward trend, every drop is a wash, just a wash. Don’t think that every drop means it’s going to fail, break down, or go to zero; it’s merely a wash. A wash is at most a false move. What’s there to fear about a false move? Even if you don’t know where to buy or sell, as long as you have this concept in your mind, you have already surpassed 80% of retail investors.
At least the K-line has a big framework in your eyes. As long as there is a big framework, you will have a sense of security. The rest is just patience. Some may say that this is because the K-line chart has formed, so you can naturally draw it this way. If it hasn’t formed, how do you know? Don’t be stubborn, don’t get caught up in details; think about the logic of this process! Some say they entered at the throat level and also entered during the downturn, but how do I judge where the top is and when to exit?
As the saying goes, those who know how to buy are apprentices; those who know how to sell are masters. Market makers often do things very subtly to avoid making it obvious that they are running away, so running away is significantly more challenging compared to bottom-fishing. The reality is, if you happen to be at a high point as a retail investor, that is your luck. You cannot eat the entire fish head to tail; eating a part is enough for you to digest. Running away before the market maker does ensures you secure your profits. As for how to judge whether it’s a top, one is to look at the volume, and the other is to see if the cryptocurrency price will create new highs; I will write a separate article on how to judge the market maker's top later.
The logic of the strategy mentioned earlier also includes an ultimate skill: the pin insertion. Among these washing techniques, I particularly love pin insertions, especially large pins. Every time I see such a pin, I instinctively feel excited. Because I know exactly what the main force is trying to do; I call this pattern a slingshot: the tighter the slingshot is pulled back, the further it will shoot. So is pin insertion scary? Not scary, it’s even a bit charming, but the premise is that it must be in an upward trend. Conversely, when the cryptocurrency price reaches two or even three times the profit, it can even reach ten or a hundred times the profit in the cryptocurrency market.
It is not an exaggeration to say that even if you can achieve 50% during this process, you are already at the top of the pyramid among retail investors. Once the price no longer creates new highs, be cautious. Remember these 12 words. If an avalanche happens next, it will be catastrophic. Every rise is an opportunity to escape; don’t hold onto hopes for a little more increase, don’t hesitate, otherwise, you will be stuck for years.
In this, there is an extremely dangerous operation: betting on rebounds. The returns are not high, but the risks are enormous, like taking chestnuts out of the fire, it’s not worth the loss. If the price has been horizontal for a while and suddenly drops, it must be a small drop; after a drop, it must rise. If it suddenly rises after being horizontal for a while, it must be a small rise, and after that, it must drop. Horizontal trading is a state of accumulating positions at the bottom. There is a question that has not been addressed before: why do market makers prefer to accumulate positions in a horizontal state? When market makers start to accumulate at the bottom, due to continuous buying of chips, the market's purchasing power increases, and the corresponding supply decreases, so it is inevitable that the price will rise.
Therefore, when the market maker enters the market, the price will no longer create new lows. This statement is very important. Why choose the horizontal mode for accumulation? The price fluctuation in a horizontal state is small, and retail investors will automatically exit after a long period without profits, allowing the market maker to quietly pick up cheap chips at the bottom. Even if you tell them these chips are very cheap and that they won’t see profits for a year, can they endure it? Very few retail investors can withstand that.
The market has some short-term traders or speculation. To prevent these short-term traders from having opportunities to speculate, horizontal trading is the most effective defense. Without significant fluctuations in horizontal trading, it is difficult to attract the attention of retail investors. By the time you notice, the price may have already hit the ceiling. These are all advantages of horizontal trading. After a period of horizontal trading, when the market maker has acquired a certain amount of chips, the horizontal pattern will begin to transform into a volatility mode, moving up and down. The goal is to shake off those weak chips. Once those weak chips are collected, the market maker's chips reach the collection target, and the next step is to rise.
Therefore, after horizontal trading comes volatility. If it shakes downwards, it cannot be a big drop; a drop below the market maker's cost price is a major incident. Thus, if it has been horizontal for a while and suddenly drops, it must be a small drop, aimed at shaking off weak positions. Conversely, if it has been horizontal for a period and suddenly rises, it indicates a signal for volatility washing. If it rises directly without shaking, it does not conform to logic (unless it is speculation, a quick hit and run). Chips are in the hands of each holder, and relying on the naturally flowing volume daily is simply not enough. Only by shaking can the market be stirred, allowing chips to circulate faster and achieve the goal of rapid collection. Even when rising, it must shake while going up; on one hand, it is to shake off following positions, and on the other hand, it is to sell high and buy low. Of course, some market makers will also adopt the model of shaking first and then going horizontal, and the purpose is the same.
Horizontal trading is meant to quietly collect chips, while volatility is for further collecting weak chips. In fact, horizontal trading and volatility are mutually inclusive. Regular fluctuations within a range also belong to horizontal trading; there can be no absolute horizontal trading. Therefore, the concept of horizontal trading is broad.
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