To this day, I have been in the crypto world for 8 years. I lost over 700,000 from a 1 million capital in the first three years! Do you know how devastated I was? At that time, if I had bought a house, it would have appreciated several times by now!
After reflecting for a long time, I decided to start over; I was really unwilling to accept this. In the fourth year, I started again with the remaining 300,000, gradually accumulating my profits, and slowly achieving stable returns each year!
Now I have turned the remaining 300,000 from that time into over 34 million. I can achieve stable returns completely. Over the years, I have summarized 10 must-follow iron rules and developed my own trading methods, which I will share with everyone today! I sincerely hope that friends who are confused in the crypto world can absorb this knowledge and avoid some detours, as the cost of hitting a wall is very high! Today, I will provide you with some valuable insights; the words are few, but each one strikes at the heart. After reading, you will have an epiphany!
First, consider a question: do retail investors have weaknesses against such powerful operators?
Yes, this weakness is the operator's throat. What we need to do is to strike true. When an operator starts to collect chips in a coin pair, it is highly likely that this coin pair will not make new lows. You just know: oh, this operator has started to enter.
Occasional events hitting new lows will quickly bounce back. When the main force has collected enough chips, one thing they must do is to start a rally. Even if a large number of retail investors jump in at this time, the operator has no choice but to drive the price up because they already have enough chips. What we need to do is to hop on this wave and enjoy the gains.
The previous bottom-picking position was precisely at the operator's position: the throat. So when does a trend start? When a coin no longer makes new lows, it means the operator has entered, indicating that the upward trend has begun. This is the trend. Remember, once the trend starts, every decline is an entry opportunity that must not be missed.
During the upward process, many retail investors follow along. The purpose of the downturn is to wash the market, but the reality is that when the price rises, you chase at a high point, and when the washing occurs, you suffer losses at a low point, cutting your losses. Take a look at your trading records and think carefully; it’s simply ridiculous. Remember, every decline during an upward trend is just a washout. Don’t think that every decline means it’s going to fail, drop to zero, or be delisted; it’s just a washout. A washout is at most a feint; what are you afraid of? 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 feel assured. The rest is about patience. Some might say that this is because the K-line chart has already formed, so you can draw it this way. If it hasn’t formed, how would you know? Don’t be stubborn, don’t get stuck in a corner, think about what the logic of this process is! Some say they entered at the throat position, and even entered during the decline, but how do I determine where the top is and when to exit? As the saying goes, those who can buy are apprentices, but those who can sell are masters. The operators often do things subtly to prevent you from realizing they are cashing out, so the difficulty of cashing out compared to bottom-fishing rises sharply. The reality is, if you as a retail investor happen to be at a high point, that is your luck. You cannot eat the entire fish head to tail; eating a segment is enough for you to digest. It’s only when the operator cashes out before the market that you can secure your profits. As for how to determine if it’s the top, one way is to look at the volume, and another is to see if the coin price will break new highs. This will be discussed in a dedicated article later on how to judge the operator's top.
The strategy mentioned earlier also includes an ultimate technique: needle insertion. Among these washout techniques, I especially love needle insertion, particularly large needles. Whenever I see such needle insertion, I instinctively feel excited. Because I clearly understand what the main force wants to do at this moment, I call this pattern a slingshot: the tighter the slingshot is pulled back, the farther it will shoot. So is needle insertion scary? Not at all; it’s even a bit adorable, but the premise is that it’s within an upward trend. Conversely, when the coin price reaches two or even three times the profit, it can even reach ten or a hundred times the profit in the crypto world.
It’s not an exaggeration to say that if you can secure 50% during this process, you are already at the top of the retail investor pyramid. Once the price no longer makes new highs, you need to be cautious. Remember these 12 words. Once there is an avalanche, it will be devastating. 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 a long time.
There is an extremely dangerous operation within this: betting on rebounds. The returns are not high, but the risks are enormous; it’s like taking chestnuts from the fire, which is not worth the loss. When it moves sideways and suddenly drops, it must be a small drop. After a drop, a rise is inevitable. When it moves sideways and suddenly rises, it must be a small rise, and after a rise, a drop is inevitable. Sideways movement is a state of bottom accumulation. There is a question that hasn’t been mentioned before: why do operators prefer sideways accumulation? When operators start accumulating at the bottom, due to the continuous buying of chips, market buying power increases, and the corresponding chips decrease, so a price increase is a natural result.
Therefore, when the operator enters the market, the price will no longer make new lows. This sentence is very important. Why do they choose to accumulate in a sideways mode? The price fluctuations in a sideways market are small, and retail investors will automatically exit after a long time without returns, allowing the operator to quietly pick up cheap chips at the bottom. Even if you tell them these chips are cheap and ask them to hold for a year without returns, can they endure it? Very few retail investors can withstand it.
There are some short-term traders or speculative funds in the market. To prevent these short-term traders from having the opportunity to speculate, sideways movement is the most powerful defensive action. Sideways movement without huge fluctuations is unlikely to attract the attention of retail investors. Often, by the time you notice, the price has already hit the ceiling. These are the advantages of sideways movement. After a period of sideways movement, when the operator has obtained a certain amount of chips, the sideways pattern will start to transform into a volatile mode, which means fluctuating up and down, aiming to shake off those uncertain chips. Once those uncertain chips are collected, the operator's chips will reach the accumulation target, and the next step will be to rise.
So after the sideways movement is the volatility. If it shakes downward, it cannot be a significant drop. If it breaks below the operator's cost price, it’s a major incident. Therefore, if it suddenly drops while moving sideways, it must be a small drop, aimed at shaking off uncertain chips. The opposite is also true. If it moves sideways for a while and suddenly rises, it indicates a signal for a volatile washout. If it rises directly without volatility, it does not comply with logic (unless it’s speculative funds that shoot and leave). The chips are all in the hands of each holder, and the natural flow of those volumes daily is simply not enough; it can only use volatility to stir the market, increasing the speed of chip circulation to achieve quick accumulation. Even during an upward movement, it should rise while fluctuating, on one hand to shake off following orders, and on the other hand to sell high and buy low.
Of course, some operators will also adopt the mode of first shaking and then moving sideways; the purpose is the same.
Sideways movement is to silently collect chips, while volatility is for further collection of uncertain chips. In fact, sideways movement and volatility are interrelated; regular fluctuations within a box also belong to sideways movement. There cannot be absolutely horizontal movement; it’s impossible for it to be completely horizontal. Therefore, the concept of sideways movement is broad.
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