Steady in solitude to withstand the market’s ups and downs.

Having immersed myself in the crypto world for over ten years, I’ve seen too many people become rich overnight during a market surge, and I’ve also witnessed stories of accounts going to zero in the blink of an eye. Starting with a principal of 50,000 yuan, my assets have now surpassed 5 million yuan. In just the six months from May to October this year, I earned over $700,000. Honestly, these results are neither due to insider information nor luck; they are purely hard-earned lessons summarized through repeated market crashes and recoveries.

Today, I want to share six trading rules I’ve refined over the past decade. At first glance, these methods may seem simple and unremarkable, but they are fundamental to surviving multiple market cycles. If a beginner can thoroughly understand just one of these rules, they could avoid losing at least 100,000 yuan. If you manage to follow three or more, your risk management level will surpass 90% of retail investors.

**01 Inferring Market Participants’ Actions from Price Movement Trajectories**

If the price suddenly surges upward quickly and then begins to slowly decline, this is usually not a sign of a market top. Instead, it may indicate that market participants are consolidating and building a bottom.

For example: Bitcoin jumps from $30,000 to $35,000 rapidly, then starts to drift downward with some hesitation, finally stabilizing around $33,000. There’s no need to panic excessively with this kind of movement. It’s a way of using price fluctuations to filter out traders with weak psychological defenses. Often, there will be another upward push afterward.

The real warning sign is the opposite—an abrupt crash following a rapid rally. That’s a true bearish trap. To distinguish whether it’s a shakeout or distribution, the key is to observe trading volume. During a shakeout, volume gradually diminishes; but if it’s distribution, trading volume usually continues to increase steadily.

**02 Spotting Clues of Gradual Participant Exit**

Conversely, pay attention to this scenario: after a rapid drop in price, the rebound is sluggish. This often indicates that market participants are systematically withdrawing. At this point, it’s not an opportunity to buy the dip.

For example, a coin drops 15% within half a day, then slowly recovers like a crawl. Behind this weak rebound, it usually reflects that internal funds are gradually flowing out.