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I am from Foshan, and I have been settled in Beijing for eight years now.
Eight years ago, with only 20,000 yuan, I dove headfirst into the crypto world. At that time, I knew nothing, just a rookie. Now, my account has accumulated assets worth tens of millions.
Does that sound like a motivational story? Not really. My success doesn't rely on any mysterious secrets, but on a straightforward method that looks simple but is actually the most effective. Just in the first half of this year, I earned over 1.7 million USD using this logic.
Over the years of trial and error, I have summarized seven most practical insights. Honestly, mastering just one of them can help you avoid losing tens of thousands; truly understanding three can put you ahead of 80% of retail investors.
**1. Too many people watch the price, too few pay attention to volume**
Most people only focus on the fluctuations of the candlestick chart, completely ignoring the most critical factor—the trading volume. Volume is the market's pulse. If you can't read it, you're not ready to get started.
**2. Don't rush to exit when the price pulls back after a rise**
A gradual pullback after a rally is often not a sign of distribution but a sign that the big players are quietly building positions. Be cautious of another scenario: trading volume suddenly surges, followed by a large bearish candle. This is called a "volume trap." Many people react by trying to sell, but end up getting trapped.
**3. Don't rush to buy the dip after a sudden drop**
This may look like a rebound signal, but in reality, it's the last window for the big players to unload. Remember this: the market loves to punish those who think "it can't fall anymore."
**4. Trading volume is the real signal indicator**
High volume doesn't necessarily mean a top; in fact, shrinking volume can be more dangerous. During an uptrend, sufficient volume indicates market enthusiasm; once volume dries up, a sharp decline may be imminent.
**5. Don't get overly excited when volume hits the bottom**
A single day of high volume isn't enough to confirm a bottom. The real turning point requires sustained buying after consolidation. Slow down, and the situation will become clearer.
**6. Trading is ultimately about human psychology, not candlestick patterns**
Volume reflects market consensus, while price is just temporary emotion. By understanding volume, you can stay in sync with the market rhythm.
**7. The highest level—"Wu Wei" (non-action)**
No greed, no fear, no panic. Sometimes hold cash and wait; other times, act decisively without hesitation. This is the demeanor of top traders.
I'm glad to share with everyone. I mainly focus on Bitcoin and Ethereum futures and spot strategies. If you're interested in this area, feel free to reach out.