Discipline beats luck; patience surpasses intelligence.

After years of navigating the crypto world, my deepest realization is that—the vast majority of people lose money not because of IQ or information gaps, but because of a lack of disciplined execution.

One trader took 8 years to grow an initial 50,000 yuan to 7 million yuan, not relying on insider info or luck, but on a "stupid method" that most people overlook. This method helped him earn over 300,000 yuan just last month. Today, I’ve summarized six core rules—understanding one can help you avoid at least 100,000 yuan in losses; mastering three can already put you ahead of 90% of retail investors.

**Understanding the Truth Behind Market Movements: What Does Fast Rise and Slow Fall Mean?**

A common phenomenon is that when prices surge rapidly, retail investors rush to sell, fearing profits will evaporate. But this actually reveals a misunderstanding of the market. Years of observation show that if after a quick rise, there’s a slow correction with gradually shrinking volume, it usually indicates that the market maker is conducting a "sweeping" operation to shake out weak hands.

The real danger signals are different: a sudden crash after a volume surge. Such a market—continuously soaring without giving traders a chance to react—is often a trap. Remember the crazy period of certain meme coins in 2024, which rose several times in a day, sparking heated discussions in groups, only to be halved the next day, trapping countless people at the top.

**The Hidden Danger of Reverse Trends: Fast Drop and Slow Rise Are the Real Pitfalls**

When prices suddenly plummet and then slowly rebound, many think it’s a perfect bottoming opportunity. But in reality, this is often a carefully set "trap" by market makers to lure retail investors into buying the dip.

There’s an old saying in crypto: "Don’t buy the dip during a crash." The Luna incident in 2022 is a perfect example—seeing a 90% drop, many thought it was the bottom and went in with leverage, only to find it dropped another 90%. Many accounts were wiped out—this is not an isolated case.

**Volume Is an Indicator That Doesn’t Lie**

When analyzing charts, many focus only on candlesticks, but volume is the real "speaker." A rebound during declining volume is the most dangerous, while a decline during high volume is a false move.

Conversely, if a coin suddenly surges with huge volume, and then shows a divergence between price and volume at a high level (price hitting new highs but volume decreasing), be cautious. In such cases, the market maker is often quietly distributing.

**The Importance of Time Cycles Is Often Overlooked**

Short-term fluctuations cannot change the long-term trend. Some traders get caught up in daily charts but fail to see the true direction on weekly charts. In this market, the more volatile the short term, the easier it is to be shaken out.

Those who consistently make money tend to focus on medium-term trends, not distracted by daily ups and downs. A correct judgment may require waiting weeks or even months for confirmation, but once validated, it can lead to significant gains.

**Psychological Preparation Is More Important Than Technical Analysis**

Seemingly simple rules are rarely followed by many. Most losses are not due to flawed methods but to a lack of firm execution. Being tempted by quick profits or panicking at paper losses are deadly mistakes.

Once you establish your trading discipline, the hardest part is sticking to it. No greed, no impatience, no gambling—these six words sound simple, but maintaining discipline in the face of market temptations and panic requires true resolve.

**Summary**

Not everyone who makes money in crypto is super smart, but they all have discipline. Stories of turning five figures into seven figures are mostly victories of discipline. Instead of chasing quick gains, it’s better to cultivate habits that can generate stable profits.