Having been involved in the crypto market for years, I have accumulated many lessons learned the hard way. Today, I want to share 8 trading insights that I gained from losing money, hoping to help newcomers avoid some detours. These are not theories; they are proven strategies tested in the market.

First, let's talk about hot coins and altcoins. Many people try to hold from the lows to the highs, but they often get beaten down repeatedly by the market. Altcoins may rise quickly, but they fall just as fast. Once a reasonable profit is achieved, it’s necessary to take profits and exit; don’t gamble on it flying forever. FIL has been declining from its high, and LUNA went to zero overnight. These painful lessons have taught many people—greed in the crypto world equals death.

Next, look at chart patterns. If a coin consolidates at a high level and then continues to surge, it’s likely a trap set by the main players to induce more buying; if it consolidates at a low and then drops further, it’s often the last shakeout by the main players. The former signals a reduction in positions, while the latter is a final opportunity to lurk. Learn to stay calm during panic and brake during euphoria—that’s the basic skill to survive.

Market sentiment is severely underestimated. When the market is weak, coins that resist declines usually rebound strongly afterward; when the market is strong, coins falling against the trend should be avoided immediately. Analyzing the market isn’t just about watching numbers; it’s more about sensing the rhythm and the flow of popularity.

Regarding adding positions and averaging down, many people stumble here. Only add to positions when in profit to truly expand your advantage. Buying more when the price breaks previous highs is riding the trend; averaging down during a decline is pure gamble. Stop-loss isn’t about giving up; it’s about respecting the market, setting a bottom for losses, and allowing profits to run freely.

Don’t rush to sell after confirming a bottom. Coins that stabilize at the bottom usually experience a “one-in-two-out” oscillation pattern. Shakeouts during upward moves are normal. The market is never a straight shot up; it’s a process of shaking and pulling. Those who can stay steady will ultimately enjoy the full gains of the wave.

In terms of trading mindset, top traders focus on sector momentum; second-tier traders look at individual coin performance; third-tier traders rely on indicators. Truly profitable players understand market sentiment and popularity—funds flow where the hot spots are. Focusing only on a single coin is too narrow; relying solely on indicators is like a blind man feeling an elephant; luck alone makes you a gambler.

Another key point: indicators are just results; volume and price are fundamental. All technical indicators are derived from volume and price. Without understanding volume and price, technical analysis is just a castle in the air. Price increases are supported by volume; without genuine trading volume, any rise is just bait.

Finally, trend-following is the way to make money. In an uptrend, buy at support levels; in a downtrend, exit decisively at resistance levels. There are no saviors in the market—by respecting trend laws, losses will naturally decrease, and profits will become more stable.