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Event ends: August 9, 16:00 UTC
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I am a 34-year-old trader from Hunan, currently living in Chengdu. When I entered this industry in 2018, the market was in a downturn, and I suffered significant losses in the beginning, nearly giving up. However, through persistence and the use of a seemingly simple strategy, I have increased my initial capital by several times over the past 7 years.
This trap strategy does not rely on internal information or early projects, but is based on in-depth observation of market volume, sentiment, and rhythm. Here are a few experiences I have summarized, hoping to help you avoid unnecessary losses:
1. A rapid rise followed by a slow decline usually indicates that the main force is accumulating. Don't be in a hurry to exit; this may be a consolidation process. The real danger is a direct crash after a surge, as that is the trap for excess buying.
2. A weak rebound after a sharp decline often indicates that the main funds are withdrawing. At this time, do not rush to bottom-fish, especially when the rebound lacks trading volume, it is likely the final selling stage.
3. Low trading volume at high levels is more concerning than increasing volume. High volume at a peak at least indicates there is still room for speculation, while light trading often signals an impending decline.
4. It is important to pay attention to the sustainability of low-volume increases. A single increase in volume may be a trap, and a real opportunity requires continuous days of volume increase followed by fluctuations and consolidation.
5. Excellent traders focus not only on prices but also on market sentiment. Candlestick charts reflect results, while sentiment is the root cause. Trading volume best reflects market consensus.
6. A truly mature trader can maintain a flat position or a heavy position at the right time. Avoid chasing highs, taking risks, and stubbornly holding positions. Many people appear to be trading on the surface, but are actually influenced by emotions.
The market is never short of opportunities; the key is to control your actions and maintain clear judgment. True success comes from being able to accurately grasp the rhythm and direction of the market.