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I have a friend in Canada who, when he first entered the crypto world, only dared to invest a few hundred thousand to test the waters. Who would have thought that after a few years, he managed to grow his position to hundreds of millions.
And me, I happened to be losing quickly during the most difficult times in the crypto market, almost gasping for air.
During a dinner, he casually said something that hit me like a heavy blow: "Most people in the crypto market are driven by emotions. If you can stay calm, this is your ATM."
At that moment, I truly realized that success or failure in the crypto world doesn't depend on luck or market cycles, but on emotional stability and rational operation.
Based on his experience, I have summarized the following 6 trading rules:
**Rule 1: Rapid rise and slow fall = Main force accumulating**
A rapid upward pace but gentle decline indicates large funds are quietly building positions. Don’t be scared by a pullback; instead, recognize the rhythm and wait patiently.
**Rule 2: Sharp decline and weak rebound = Main force distributing**
After a sharp drop, only a weak rebound occurs, mostly because the big players are fleeing. Greed for cheap prices can easily make you the bag holder, so be cautious.
**Rule 3: Volume at the top is key; no volume at the top means quick retreat**
Trading volume determines market direction. A volume spike at the top indicates strong buying interest and potential continued strength; but if there's no volume, it’s a sign of a dying trend, and you should exit quickly.
**Rule 4: Don’t rush to buy on a single volume spike at the bottom; multiple volume increases are more reliable**
When volume spikes at the bottom, don’t impulsively chase the high. A single spike might be a trap; only repeated volume increases indicate a market consensus forming, which is a safer opportunity.
**Rule 5: It’s not about the K-line, but about consensus**
You can ignore the complexity of candlestick patterns, but market sentiment and consensus are the essence of pricing. Remember, trading volume is the most direct mirror of market consensus.
**Rule 6: Desirelessness makes one strong**
Without obsession, greed, or fear, your win rate truly increases. Only by maintaining a calm mind can you steadily move forward amid market fluctuations.
The crypto market is full of uncertainties and challenges, but it also contains huge opportunities. Success doesn’t happen overnight; the key is whether you can adhere to these rules.