After six years of navigating the cryptocurrency market, I have grown from a newbie with only 80,000 in capital to a financially free trader. This market offers limitless opportunities, but the real challenge lies in staying clear-headed and respecting market rules. Today, I will share six trading survival rules forged through blood and fire, each encapsulating profound cognitive breakthroughs.



1. Be cautious of a one-sided crash after a surge.

The slow decline after a sharp rise in coin price is usually a consolidation, while the real danger is a sharp drop following a surge, which often represents the final form of a trap for the inexperienced.

2. Slow rise and fast fall may be a selling signal.

If you see a weak rebound after a sharp drop, it is likely that the main force is dispersing chips. A true bottom reversal is usually accompanied by a significant increase in trading volume, rather than a slow climb.

3. The Importance of High Trading Volume

When the price hits a new high, if the trading volume continues to increase, it indicates that funds are still actively participating; conversely, if the trading volume shrinks at a high level, it may indicate an impending crash.

4. Identifying Real Bottom Signals

A sudden surge in trading volume after a prolonged decline may be a false signal. The real bottoming process is usually characterized by a sustained mild increase in trading volume after a sideways movement, accompanied by a steady rise in prices.

5. The volume-price relationship is a core indicator.

The candlestick chart shows the market appearance, while the trading volume reflects the intrinsic momentum. When there is a divergence between price and trading volume, it often indicates that a trend is about to reverse.

6. Pursuing a state of selflessness: The ultimate realm of a trader

Abandoning obsessions allows for patiently waiting for high-certainty opportunities; overcoming greed prevents reckless advances at high positions; conquering fear enables one to dare to go against the trend during market downturns. This is not passive escapism, but rational thinking after experiencing countless setbacks.

The cryptocurrency market has experienced a decade of ups and downs, witnessing countless fleeting "geniuses". The market does not reward intelligence but respects those who adhere to the rules. In this uncertain market, only by mastering and strictly executing these survival principles can one capture real opportunities amidst the chaos. Remember, the market trends will eventually pass, but the way to survive endures.
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
MidnightTradervip
· 08-20 14:50
The opening will be self-financed for profits and losses.
View OriginalReply0
SchrodingersFOMOvip
· 08-20 14:35
Will not Short Position Will not Full Position
View OriginalReply0
BearMarketBarbervip
· 08-20 14:32
The market is a practice.
View OriginalReply0
Layer2Observervip
· 08-20 14:28
Market rules are the truth
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)