In the cryptocurrency market, I have witnessed countless investors suffer losses due to blind following of trends. They bet heavily during a bull run and frequently average down during a Bear Market, ultimately left with only records of losses and regrets. In contrast, I have summarized six core trading principles through practice, and these principles have helped me rise from the lows of the market and achieve asset appreciation multiple times. These are not just empty words, but insights tested through real combat.

Rule One: Be patient in the face of a slow adjustment after a rapid rise. When the market enters a sideways consolidation period after a big increase, don't be easily shaken out. Looking back at the performance of Ethereum in 2019, I almost gave up at the lows, but by holding on, I ultimately welcomed a true bull run.

Second Rule: Be wary of slow rebounds after a sharp decline. Such situations are often traps rather than real opportunities. In the 2021 Dogecoin market, many investors misjudged that the bottom had been reached, only to be deeply trapped by the subsequent drop.

Rule Three: High trading volume is a key indicator. When prices reach new highs accompanied by a significant increase in trading volume, the market may not be over yet; however, if high trading volume shrinks, it is often a signal to exit. Before the LUNA collapse in 2022, I noticed the unusual changes in trading volume and withdrew in time.

Rule 4: A bottom reversal requires multiple confirmations. A sudden increase in volume at a low level does not necessarily mean a reversal; it could be a trap for bulls. The true market bottom usually requires a period of low volume consolidation before a sustained increase in trading volume occurs. For example, I decided to enter the market after patiently observing and confirming for two weeks during the Ethereum rally that started from $880.

Fifth rule: Trading volume is the core of analysis; do not focus solely on price fluctuations. Candlestick charts may be manipulated, but it is difficult to fake trading volume data. In 2023, several small encryption currencies experienced false breakout trends, and those investors who chased prices without considering volume ultimately suffered losses.

Practicing these principles can help us stay clear-headed in the complex and ever-changing encryption currency market, and also improve the accuracy of investment decisions. Remember, successful trading requires not only technical analysis but also strong mental fortitude and strict discipline. In this high-risk, high-reward market, only through continuous learning and summarizing experiences can one remain invincible in fierce competition.