Ladies and gentlemen, I’ve been in this industry for nearly 6 years. Today, I want to be honest about some counterintuitive truths that the market has repeatedly validated. None of these are theoretical; each one has been learned through real money and real experience.

I am born in the 80s, a native of Fujian, now settled in Hangzhou. When I entered this circle, I started with a principal of 530,000 yuan. I had no background, no one to guide me, and I relied solely on my own exploration to get to where I am now. There are no hidden tricks, no shortcuts, and certainly no luck explosions.

If I have to say what I did right, it’s a simple fact: surviving long enough.

People often ask me, why can some people stay in the market for a long time, while others exit after just one cycle? My answer is straightforward—because those who survive not only understand the rhythm of capital but, more importantly, they control their desires and fears. Both of these are deadly.

The following 6 rules are things I have repeatedly validated over these 2,960+ days with real money. They may seem simple, but mastering them can help you avoid 90% of common pitfalls.

**Rule 1: Rapid rise followed by slow correction. This is usually not a market top but a shakeout of funds.** The price suddenly surges, then gradually drifts down. During this process, retail investors’ mentality may break and they want to escape, but essentially, the big players are rotating hands and shaking off followers. This is when the most mistakes are made.

**Rule 2: After a flash crash, a slow climb. Don’t think this is an opportunity.** The price drops sharply in an instant, which can be frightening, right? But if the subsequent rebound is very slow and sluggish, it’s likely the end of the big players’ dumping phase. The idea that "it’s fallen so much, it must bounce back" is the easiest way to get caught.

**Rule 3: High volume at a high level isn’t necessarily dangerous; the real risk is volume suddenly shrinking.** If the price can sustain a rise at high levels with volume keeping pace, it indicates ongoing competition and that funds are still entering. But if you see the price start to move sideways while volume suddenly drops, that eerie quiet often signals an impending big drop.

**Rule 4: A single large bullish candle at the bottom, don’t be fooled—this is usually a smoke screen.** The real bottom is formed gradually. What’s the use of a single bullish candle? Continuous days or even weeks of stable high volume are the real signals that funds are seriously building positions, not just fooling around.

**Rule 5: Don’t just look at candlesticks; volume reveals market sentiment.** Too many people focus only on price changes, but that’s superficial. The true market mood is hidden in volume—it reflects the real strength comparison between bulls and bears, and it’s clear at a glance.

**Rule 6: The most critical point—those who can hold no position are the true masters.** Holding no position isn’t losing; it’s restraint. Not chasing highs is rational; not being driven by panic is confidence. When you can remain indifferent to wave after wave of market fluctuations, trading truly works for you instead of consuming you.

The market is constantly moving, but if you can protect your principal and stay true to your original intention, you’ll have a chance to stand firm in the next cycle. These principles may sound old-fashioned, but few people can truly implement them.