I believe many in the cryptocurrency circle have experienced the immense pressure of capital fluctuations: investing 1 million but losing 700,000 in the first three years, which is nearly crushing.
But after deep reflection, many investors decided to start again and re-enter the market with their remaining funds.
Starting with 300,000, through continuous effort, some people have successfully increased it to 34 million, achieving stable returns. In this process, they summarized some valuable experiences and 'iron rules', as well as a unique cryptocurrency trading strategy.
Today, let's see what we have:
First, think about a question: Does the dealer have weaknesses?
The answer is yes. The weakness of the dealer is his 'throat', and what we need to do is seize this opportunity. When the dealer dives into a certain cryptocurrency pair to start accumulating chips, this currency rarely hits a new low. Once the dealer has enough chips, he will push up the price. At this point, our goal is to catch this wave of increase and ride the trend.
How to determine when a trend has started?
When the price no longer hits new lows, it indicates that the dealer has started to intervene, and the upward trend has begun. Remember, once a trend is initiated, every drop is just a process of washing out, not a complete collapse. Do not think that the currency is going to crash every time you see a drop; in fact, this is the dealer cleaning out indecisive chips.
How to determine when to exit?
Determining the timing for exiting can be considered from two aspects: one is to look at the trading volume, and the other is to see whether the price hits a new high. If the price does not hit a new high, caution is warranted. Dealers usually exit secretly at high points, so you may not be able to fully capture this wave of profit, but capturing a portion is enough.
About the 'spike' strategy
The 'spike' method of washing out is usually seen in an upward trend. Through the method of spiking, dealers collect chips during fluctuations, preparing for the next wave of increase. Therefore, do not panic when you see a spike pattern; it often indicates a forthcoming rise.
Consolidation and fluctuation
Consolidation is the best time for dealers to accumulate chips. During consolidation, the market fluctuates little, and retail investors are likely to give up, allowing dealers to quietly collect bottom chips. Once the consolidation ends, it often enters a fluctuation mode, aiming to shake out the indecisive retail investors through slight fluctuations. When the chips accumulate to a certain extent, the price will begin to rise.
In general, consolidation, fluctuation, and spiking are all commonly used strategies by dealers. Whether it’s consolidation for accumulation or fluctuation for washing out, their ultimate goal is to prepare for the next wave of increase.
As retail investors, the key is to have a clear ability to judge trends, not to blindly follow the crowd, and not to cut losses during a downturn. In this market, seizing every correct buying opportunity and being steady will allow you to profit steadily.