Must-Know General Rules in the Cryptocurrency World! In the past, the cryptocurrency market was a confrontation between the East and the West. There used to be market movements both during the day and at night, with basic trends occurring during Western hours, specifically between 21:30 and 7:30 Beijing time.
Most significant price increases happen in the early morning, so a qualified trader should sleep at 20:00 and wake up at 4:00 to pay attention to trading.
1. When there is a continuous decline during the day in China, it is essential to buy the dip, as foreigners will pump the market at 21:30.
2. If there is a significant rise during the day, do not chase the price, as it will likely fall back at night.
3. The key signal for buying and selling is the spike; the deeper the spike, the stronger the buy and sell signals.
5. Major meetings or positive news will lead to a price increase, but once it lands, the price will drop.
6. In group discussions, if a community promotes a cryptocurrency with over-the-top messages, and you get excited, you are likely to get scammed; consider doing the opposite. If a coin is hot, it's very hot. You can short it immediately.
8. If a friend in the group recommends something that you find uninteresting, it is highly likely to take off. When in doubt, consider trying a little bit.
9. When you hold a large position, you will definitely get liquidated. Why? Because you are on the exchange’s watchlist for liquidations.
10. After your stop-loss on a short position is executed, the price will definitely drop. If they don’t trick you into getting out or liquidate you, how can it fall? For example, TRB.
11. When you are about to break even, and you are so close, the rebound suddenly stops; how could they let you close your position and run away?
12. When you take profit, it becomes a pullback; if you don’t get out, how can they pump the market? The weight is too heavy.
13. When you are excited, a sudden drop will arrive as expected; your excitement is also a lure from the market makers.
14. When you are broke, every project seems to be rising, making you FOMO and rush to enter the market.
So you understand, the market is manipulated over 80% of the time. Apart from controlling your position, you must also act decisively, clearly not entering the market before the market makers operate. Once you enter, the exchange is the butcher, and you are the fish.
Trading is about patience, composure, and timing. Let’s support each other. The cryptocurrency world creates countless possibilities every day; I hope this helps you, and I welcome communication.