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The same is true in crypto trading: some turn a few thousand dollars into a fortune worth millions, while others are constantly trapped, suffering heavy losses. What's the difference? Frankly, there are no overnight millionaires in the crypto world—only those who treat trading as a craft to hone and their mindset as a skill to cultivate.
I have accumulated years of trading experience with real money and summarized 6 practical insights. If you're also navigating the crypto space, these might inspire you.
**1. Rapid Rise, Slow Fall — Don't Rush to Exit**
When prices suddenly surge and then gradually decline, many beginners panic and sell immediately. In reality, this is often market manipulation by large players shaking out weak-handed retail investors. The real danger signals at the top are violent spikes followed by waterfall declines—that's the last harvesting window for the big players.
**2. Sharp Drop, Slow Recovery — Be Cautious**
Conversely, when prices plummet sharply and then slowly rebound, don't rush to buy the dip. This seemingly warming trend is often a trap to lure in more buyers. The idea that "it's bottomed out" can lead you into deeper trouble.
For mainstream coins like SOL, such patterns have appeared multiple times.
**3. High Volume at Top ≠ Time to Exit**
A sudden surge in trading volume at a high price doesn't necessarily mean you should sell immediately. The market might still be preparing for a second wave. What you should really watch out for is a sudden decrease in volume, with trading activity drying up like a ghost town—that's a sign of impending sell-off.
**4. Volume at Bottom ≠ Direct Entry**
A large candle at the bottom is often a trap set by market manipulators. Blindly following in can get you stuck. Only when the price consolidates with low volume for a period and then shows sustained, gentle volume increases is it a genuine sign of accumulation.
**5. Understanding Volume Is Key to Reading the Market**
Candlestick charts show surface-level results, but volume tells the real story. Shrinking volume indicates a lack of participation, turning the market into a stagnant pool; surging volume means big funds are entering and enthusiasm is rising. Fluctuations in volume reflect the true market sentiment.
**6. Mastery Comes from "Nothingness"**
No attachment: Don't be hostage to your subjective opinions. When it's time to short, do so decisively; when it's time to go long, do so with conviction.
No greed: Don't be blinded by short-term surges; resist the temptation to chase highs or sell lows.
These two principles sound simple, but few can truly practice them. Opportunities to turn around in the crypto market are always present—what matters is whether you use the right methods and cultivate a resilient mindset.