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Many people are obsessed with all kinds of flashy operations in the crypto world. I happen to know a 39-year-old guy from Shanghai who has been fighting in this circle with me for six years. This guy never plays those套路 (tricks), nor does he believe in insider information. He simply refines his approach with the most straightforward methods, and eventually turned 30,000 yuan into over 50 million.
The most impressive thing is that after getting rich, he never shows off. He owns five properties—living in one himself, giving one to his parents, and renting out the remaining three. That’s what it truly means to have the second half of life under control.
His six years of success, frankly, come down to sticking to a few simple principles. They are more effective than analyzing a hundred indicators.
**First, rapid gains and slow declines—that’s called main force accumulation.** After a sharp rise, a gentle correction usually indicates that large funds are quietly building positions. Don’t be fooled by superficial fluctuations; the key is to watch the rhythm.
**Second, quick drops and weak rebounds—generally signs of main force distribution.** When prices suddenly crash and can’t be pulled back up, the funds are already withdrawing. Don’t foolishly try to catch the bottom; you’re most likely to get trapped.
**Third, high-volume at the top doesn’t necessarily mean a peak.** Sometimes, volume at the top is just a sprint; in fact, shrinking volume at the top may indicate the market is truly ending.
**Fourth, a single wave of volume at the bottom is unreliable; continuous volume is meaningful.** A sudden surge in volume can often be a scam; multiple sustained increases in volume show that the market has truly reached a consensus.
**Fifth, trading cryptocurrencies is fundamentally about human psychology, not charts.** No matter how complex the technical indicators, they ultimately point to emotions. Volume directly reflects the market’s true sentiment.
**Sixth, ‘nothingness’ is the highest realm.** Desireless, fearlessness, and non-attachment—only then can one live long. Enduring the empty periods allows you to be ready for big moves.
These six principles are more effective than any complicated theory.