Today, while having lunch with a friend, he shared a legendary journey from investing 400,000 to entering the crypto space, experiencing a low point of only 80,000, and now accumulating assets to tens of millions. Throughout this journey, persistent learning and cognitive improvement became the key to changing his fate. He generously summarized five valuable insights to inspire every fortunate reader:
1. Staying Calm in the Face of Early Morning Drops: Many times, this is just an overreaction to negative news from the previous night. Maintain patience and wait for the market to self-correct and reverse, rather than rushing to cut losses. Conversely, if there is a sharp rise at the end of the trading day, it should be approached with caution, as this may be a strategy by major funds to test the market or induce buying, with the next day often seeing a low opening to suppress and accumulate shares.
2. Trading Volume: The Key to Understanding the Market: Trading volume is an important indicator of market activity and trend direction. A rise in volume often indicates strong control by major players and stable market confidence; while a drop in volume may suggest that panic selling is not yet over and the market bottom has not formed, potentially prolonging the downward trend.
3. Grasping the Rhythm of Sector Operations: Sector trends often follow the Five Wave Theory, with each wave having its specific meaning and characteristics. Especially the third wave, as the main upward wave, usually has the largest rise. However, the market is unpredictable, and the Five Wave structure may not always be complete; hence, flexibility is required. When the leading sector shows stagnation and the rebound momentum weakens, one should be alert for topping signals.
4. Accelerating at the Top of the Market and Sector Rotation: Historical data shows that the accelerating period at the top of the market often accompanies significant rises in specific sectors of altcoins, which often indicates that the market is about to reverse. Observing whether leading coins stop falling and start rising can serve as an important reference for judging the subsequent market trend.
5. Focus and Mastery: For newcomers to the crypto space, focusing on one trading strategy and studying it deeply until proficient is far more effective than briefly learning multiple methods. Trying to do too much at once and frequently switching trading modes only increases the probability of making mistakes. Only by settling down and progressing step by step can one gradually achieve stable profits, expand learning boundaries, and integrate strategies.
Finally, I remind all investors to maintain risk awareness while pursuing high returns, to analyze rationally, and to make prudent decisions. Follow my homepage to receive free bull market layout strategies daily and embark on a journey to wealth! #财富自由