General Rules of the Cryptocurrency Market
In the past, the cryptocurrency market was characterized by the East-West confrontation, with trading opportunities available both day and night. Generally, significant price movements occur during Western hours, specifically between 21:30 and 7:30 Beijing time. Major price increases typically happen in the early morning, so a qualified trader usually sleeps at 20:00 and wakes up at 4:00 to monitor trades.
1. During significant declines in the domestic market during the day, it's essential to buy the dip, as foreign traders will often push prices up at 21:30.
2. If there is a significant rise during the day, do not chase the price, as it will likely drop back at night.
3. The key signal for buying and selling is the price spike; the deeper the spike, the stronger the buy or sell signal.
4. Major meetings or positive news will often lead to price increases, but once the news is released, prices will drop.
5. In group discussions about trading strategies, when a community promotes a coin enthusiastically, your excitement is likely to lead to losses, and you should consider taking the opposite position. If a coin is very hot, you can short it immediately.
6. When a group member recommends a coin that doesn't interest you, it is likely to take off; when in doubt, it might be worth trying a small investment.
7. When you hold a large position, you are likely to get liquidated; why? You will be on the liquidation list that the exchange closely monitors.
8. After you set your stop-loss on a short position, the price will definitely drop; if they don't trick you into selling or force a liquidation, how can it drop? For example, TRB.
9. When you are about to break even, and it's just a little bit away, the rebound suddenly stops; how could they let you exit safely?
10. When you take profits, the price will likely drop; if you don't exit, how can the price rise? The position is too heavy.
11. When you are excited, the market will inevitably crash, and your excitement is a trap set by the market makers.
12. When you are out of funds, every project seems to be rising, causing FOMO and pushing you to enter the market quickly. Therefore, you understand that the market is manipulated with over 80% probability; besides managing your position size, you must also be proactive and not enter the market until you clearly understand the market makers' actions. If you enter the market, you are just a fish on the chopping block for the exchange. Trading is about patience, self-control, and timing, let’s encourage each other.
