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Stocks and the crypto world may seem like two different realms, but their underlying logic is quite similar—both revolve around market structure, position control, and rhythm timing. The difference is that crypto volatility is crazier, nonstop 24 hours a day, with risk levels at their maximum. However, the iron laws and rules proven in the stock market still apply in the crypto space.
**Profit and Stop-Loss Timing**
Up three days in a row? Whether stocks or coins, take profits first and don’t expect to always catch the last point. Has a low bottom appeared after five days of decline? That’s the time to position; be patient and wait for entry signals, don’t rush to buy the dip.
Opening with a plunge? Boldly taking the plunge can often lead to rebounds and profits. Rising early in the session? Quickly clear your positions and lock in gains. The most tricky time is in the afternoon—if it surges, reduce your holdings; those chasing the rally are usually cut. If it drops, wait until tomorrow to consider entering again.
**How to Read Volume-Price Relationship**
Sudden high volume at a high level? Run, don’t bother. No volume at a low level? Wait patiently, don’t rush. When volume shrinks at a high level, it’s easy to see sideways consolidation; the main players might be shaking out weak hands. Don’t be scared off by volume decline during consolidation—that’s just a routine.
If the price opens low in the morning and is pushed up by the close, it indicates someone is quietly accumulating chips. Conversely, if it opens high in the morning and falls back by the close, it’s likely the main players are distributing. Morning rally followed by afternoon retreat? Most likely a shakeout. Frequent volume spikes at low levels? Sign of capital building positions—stay alert.
**Key Points for Trend Trading**
In an uptrend, every small pullback is an opportunity to buy. In a downtrend, every small rebound should be seen as a chance to distribute.
A decline within an upward channel is often a trap to lure in shorts—don’t be fooled. An increase within a downward channel is mostly a trap to lure in longs—stay cautious.
**Differences in Mindset and Execution**
Playing stocks tests your mindset and patience most; the market gives you time and buffer space to react. Playing in the crypto world is different—it requires maintaining composure amid extreme volatility, testing your execution and discipline even more. The stock market is a marathon; the crypto market is a sprint, but both are long-term tests.
Whether in A-shares, Hong Kong stocks, or crypto futures and spot markets, capital management always outweighs technical analysis. Those who can stand firm in the stock market are less likely to be wiped out in a crypto rally because discipline and position management are ingrained in their bones.
No matter how complex the candlestick charts are, nothing beats trading discipline. Position management always comes first.