The eight pithy formula of the currency circle sums up many experiences and lessons of coin speculation, and condenses the essence of market psychology and operation strategy. Below, I will briefly analyze the core logic of each mnemonic to help you better understand and apply it, while also reminding you of some precautions: one ⃣ Tightening up and replenishing positions to seek capital preservation, and expecting profits is greed Core: Don't rush to recoup your investment after being trapped, replenishing your position to reduce costs is a safe strategy, but you can't expect short-term profits. Analysis: Careful replenishment is necessary to confirm whether the trend has stabilized, otherwise it may lead to further losses. Suggest setting a stop loss to avoid a bottomless pit. Attention: Before replenishing positions, it is necessary to analyze the fundamentals of the project and market sentiment, and not blindly accept orders. two ⃣ Calm water surface, wave high, beware of big waves behind Core: A calm market is often an illusion before a storm, and a small rise may indicate a large fluctuation. Analysis: The cryptocurrency market has strong volatility, and a calm period may be a signal for the main force to attract or sell funds. Pay attention to trading volume and on chain data, which can help you perceive risks in advance. Attention: Do not be misled by low volatility and be prepared to deal with unexpected market trends at any time. three ⃣ After a sharp rise, there will be a pullback, and the candlestick has been drawing a triangle for several days Core: A pullback after an uptrend is a market pattern, and the candlestick triangle shape often indicates the direction of a breakthrough. Analysis: Triangular shapes (such as rising/falling/symmetrical triangles) are classic signals in technical analysis, and it is important to observe trading volume and trend lines before breaking through. A pullback is a normal adjustment, don't panic and sell. Attention: False breakthroughs are common, and it is recommended to confirm them in conjunction with other indicators. four ⃣ Buy Yin instead of Yang, sell Yang instead of Yin, and go against the market to become a hero Core: Reverse operation, buy low and sell high, avoid chasing gains and killing losses. Analysis: Market panic during a bearish trend may be an opportunity to buy at the bottom, while market greed during a bullish trend is suitable for safety. Trading against the market requires a strong mindset and precise judgment. Attention: There is a risk of going against the market, and it is necessary to combine the trend and capital flow. Do not blindly buy or sell at the bottom. five ⃣ Do not rush high, do not sell, do not dive, do not buy, do not trade sideways Core: Avoid emotional trading and wait for clear signals. Analysis: Rush and dive are extreme emotional points, while a sideways trend indicates an unclear direction. Patience in waiting for the trend to become clear can increase the winning rate. Attention: During the sideways period, you can pay attention to on chain activity and project dynamics to prepare for the next wave of market trends. six ⃣ Look for support levels in an uptrend, and pressure levels in a downtrend Core: The key to technical analysis lies in identifying support and pressure levels, and grasping buying and selling points. Analysis: Support level is an area where prices are difficult to fall, while pressure level is an area where prices are difficult to break through. Attention: The support/pressure level is not absolute and may reverse after breaking through (such as support becoming resistance). seven ⃣ Full warehouse operation is a major taboo, and it is not advisable to act unilaterally. We should be aware of the unpredictable changes and be able to enter and exit freely while observing the situation Core: Diversify risks, operate flexibly, and take profits and stop losses in a timely manner. Analysis: Full position is equivalent to gambling on luck. Black swan events occur frequently in the cryptocurrency industry, and sufficient liquidity is necessary to cope with unexpected situations. Set profit and stop loss points and strictly enforce discipline. Attention: The market is unpredictable, don't be stubborn, learn to adjust strategies based on new information. eight ⃣ Money speculation is about mentality, greed and fear are harmful Core: Mentality determines success or failure, and emotionality is the biggest enemy. Analysis: Greed makes people chase high, fear makes people cut the bottom. Establishing a trading plan can reduce emotional interference. Attention: Long term profitability relies on discipline rather than luck. Keep learning and pay attention to industry trends. Summary suggestion: The core of these eight mnemonics is the word 'stability', emphasizing discipline, mentality, and technical analysis. High risk and high return in the cryptocurrency industry, suggestions: