Many people ask me, what is the real difference between stocks and the crypto world? To be honest, from the perspective of trading essence, there is no fundamental difference—both focus on market structure, managing positions well, and catching the rhythm. The only difference is that the crypto market has larger fluctuations, moves 24 hours a day, and carries a much higher risk factor.

After years of practical experience, I have summarized a set of trading rules that are applicable to both stocks and the crypto market. It’s not some profound theory, but practical insights close to the market.

**On Judging the Rhythm of Price Movements**

After three consecutive days of gains, don’t think about chasing further; it’s time to take profits. This is a common signal that the short-term buying momentum has exhausted. Conversely, five days of consecutive declines usually indicate a buying opportunity at the low, requiring only patience to wait for confirmation signals.

When an abrupt decline occurs at the open, only those willing to buy the dip will have profit opportunities. But if there’s a sharp rally in the early trading session, it’s better to exit promptly. The afternoon trend also matters—if it rises in the afternoon, reduce positions and don’t chase high; if it falls in the afternoon, wait until the next day to decide whether to buy.

**On Volume Signals**

A sudden increase in volume at a high level is a sign of distribution, so you should exit quickly. Conversely, low volume at a low level for a long time indicates that the main players are still hiding, so continue to be patient and wait. When volume shrinks at a high level but the price is still falling, it’s probably a trap to shake out weak hands—don’t be scared away.

**On Order Book Details**

A low open in the morning followed by a strong rally at the close indicates that big funds are quietly accumulating. Conversely, a gap-up open in the morning followed by a decline at the close is usually a sign of distribution. A morning rally followed by a retreat in the afternoon is almost certainly a shakeout.

When the stock or crypto price is in a low position and volume frequently increases, it indicates that funds are building positions—staying alert during this phase is very important.

**Trading Opportunities in Trends**

A small correction within an uptrend? That’s a classic buy point. A small rebound within a downtrend? That’s a sell signal. Simple but highly effective.

In an upward channel, declines are often just traps to shake out weak hands—don’t be fooled into exiting prematurely. Conversely, in a downward channel, upward movements are mostly traps to lure more buyers—be cautious.

**Deeper Reflections**

Playing stocks is about training your mindset and patience. The market gives you time and buffers. But the crypto world is different—you need to apply this mindset in an environment of extreme volatility, which tests your execution and self-discipline.

The most critical point is that money management is always more important than technical analysis. Whether you’re trading A-shares, Hong Kong stocks, or crypto futures and spot markets, this principle remains the same. Traders who survive in the stock market usually won’t be easily wiped out in the crypto market either, and the reason is right here.

Therefore, I always insist on one point: discipline and position management are always more decisive than how many K-lines you can read. This is the core of trading and the key to lasting success.