Five Major Rules to Remember When Speculating in a Bull Market:
1. When the price of a coin rises sharply and falls slowly, there must be stockpilers buying at low prices in anticipation of a rise. This is an opportunity that requires attention.
2. When the price of a coin plummets and rises slowly, it is often a sign that large investors are offloading their holdings, wanting to sell their chips. The market may be heading downward, so don’t wait to buy the dip; exit quickly.
3. At high market levels, if the volume increases, don’t rush to sell; there may still be an upward trend. If the volume decreases, exit quickly as the upward momentum has likely exhausted, to avoid being trapped.
4. At low market levels, if there is a sudden increase in volume, don’t impulsively buy; it may just be a small rebound. Wait for the volume to continue increasing and for funds to flow in before considering it a good entry opportunity.
5. Speculating in coins is essentially speculating on human sentiment; when the crowd is united, the price of coins rises. In the market, trading volume reflects the collective sentiment; high volume indicates a united front, while low volume shows a restless crowd that is waiting and watching.