From an ordinary young man in Changsha to a successful trader settled in Shanghai, my journey in the crypto world has been both challenging and rewarding. Over the past five years, I have grown my initial capital of $40,000 to an astonishing $62 million, and all of this did not stem from insider information or so-called "bull run benefits," but from consistently implementing a trading strategy that seems simple yet is extremely effective.
On this long journey, I have experienced the pain of liquidation, tried the helplessness of cutting losses, and even fallen into the abyss of despair. However, it is this persistence over more than 2000 days and nights that has led me to view trading as a constantly evolving game, facing challenges with a sense of reverence.
After countless attempts and summaries, I have summarized the following six trading rules, hoping to provide reference for fellow travelers:
1. Volume dictates direction: Rapid rises and slow declines often suggest that the main forces are quietly accumulating, while a sharp drop after a rapid rise may signal a harvest; caution is required at this time.
2. Be cautious of rebounds after a flash crash: a rapid decline followed by a slow rise may be a sign of major players offloading their positions, and rebounds in such cases are often traps.
3. High volume contraction at elevated levels poses greater risks: Compared to high volume expansion, long-term volume contraction in a sideways market should raise more alarms, as it may indicate a significant downturn.
4. The bottom requires multiple confirmations: a single volume spike is not sufficient to determine the bottom; a volume increase after a period of continuous oscillation and decreased volume is a better time to build positions.
5. Valuing volume over candlesticks: While candlesticks display price movements, volume better reflects the true sentiment of the market.
These experiences have condensed my years of hard work, and I hope they can provide some insights for other traders. Remember, in this market full of opportunities and risks, it is crucial to remain cautious and continue learning.
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From an ordinary young man in Changsha to a successful trader settled in Shanghai, my journey in the crypto world has been both challenging and rewarding. Over the past five years, I have grown my initial capital of $40,000 to an astonishing $62 million, and all of this did not stem from insider information or so-called "bull run benefits," but from consistently implementing a trading strategy that seems simple yet is extremely effective.
On this long journey, I have experienced the pain of liquidation, tried the helplessness of cutting losses, and even fallen into the abyss of despair. However, it is this persistence over more than 2000 days and nights that has led me to view trading as a constantly evolving game, facing challenges with a sense of reverence.
After countless attempts and summaries, I have summarized the following six trading rules, hoping to provide reference for fellow travelers:
1. Volume dictates direction: Rapid rises and slow declines often suggest that the main forces are quietly accumulating, while a sharp drop after a rapid rise may signal a harvest; caution is required at this time.
2. Be cautious of rebounds after a flash crash: a rapid decline followed by a slow rise may be a sign of major players offloading their positions, and rebounds in such cases are often traps.
3. High volume contraction at elevated levels poses greater risks: Compared to high volume expansion, long-term volume contraction in a sideways market should raise more alarms, as it may indicate a significant downturn.
4. The bottom requires multiple confirmations: a single volume spike is not sufficient to determine the bottom; a volume increase after a period of continuous oscillation and decreased volume is a better time to build positions.
5. Valuing volume over candlesticks: While candlesticks display price movements, volume better reflects the true sentiment of the market.
These experiences have condensed my years of hard work, and I hope they can provide some insights for other traders. Remember, in this market full of opportunities and risks, it is crucial to remain cautious and continue learning.