In these years of trading cryptocurrencies, from having nothing to making millions, I didn't rely on insider information, nor did I catch the bull market, but relied on a set of 'simple methods' that I used repeatedly. Here are 6 rules that helped me survive and make money.
First Rule: Fast rises and slow falls mean the market makers are accumulating.
A rapid rise followed by a slow decline is often a washout; don't rush to sell. A true peak is when there is a volume spike followed by a direct drop; that's the bait for more buyers.
Second Rule: Fast falls and slow rises mean the market makers are distributing.
After a flash crash, a slow rebound is not an opportunity; it's the final blow. Don't fantasize, 'Can it really drop this much more?'
Third Rule: Volume at the top doesn't necessarily mean the end; lack of volume is dangerous.
If there's volume at a high level, there may be another surge; if there's silence and no volume at a high level, that's the night before a crash.
Fourth Rule: Don't rush when there's volume at the bottom; sustainability is key.
A one-time volume spike could be bait; sustained volume over several days followed by a contraction and then another volume spike is the true signal for building a position.
Fifth Rule: Trading cryptocurrencies is about trading emotions; emotions are hidden in 'volume.'
Candlestick charts are results; trading volume is the thermometer of emotions. Shrinking volume means no one is playing; explosive volume means money is flooding in.
Sixth Rule: 'Nothing' is the ultimate state.
No attachment, daring to hold cash; no greed, not chasing highs; no fear, daring to bottom fish. It's not about being Zen; it's about having a top-tier mindset.
Finally, tools are the eyes, and discipline is the hands. Go to Ave.ai, see the real flow on-chain, and be the master of your own trading. #Web3 #ave