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In this market, the direction isn't as important as the rhythm, which is deadly.
I once turned 10,000 USDT into 140,000 USDT in two months, during which I almost poured all my energy into trading. Watching the screen for 18 hours a day, pondering repeatedly, I gradually understood some practical things. Looking back now, it was truly crazy.
Many people end up losing money not because they can't read the market correctly, but because they completely miss the rhythm. Here, I’ve summarized 6 painful lessons that might help you avoid some pitfalls.
**The Game of Rallies and Pullbacks**
Some coins surge fiercely when they go up, but drag their feet when they pull back. Don’t rush to cut your losses in such trends. What should you really be cautious of? When a surge is accompanied by high volume and then it crashes down immediately, giving no chance for a rebound. This kind of straight-line decline usually indicates that the main players are actually running away. Remember, the label of strong coins is rapid rise combined with slow correction, while those that keep falling endlessly are best avoided.
**How Deep is the Pit of Sharp Rebounds**
The most common trap for beginners is the seemingly attractive rebound after a sharp decline. If the rebound’s volume doesn’t keep up and the price rises weakly, it’s almost certainly a trap. This isn’t a buying opportunity but a smokescreen for funds to continue fleeing. Truly healthy rebounds are accompanied by explosive volume and rapid price increases. Those weak rebounds that creep up little by little? Most of the time, they’re just to attract unsuspecting buyers. Out of ten such operations, nine are just to harvest the little guys.
**Reading Volume at High Levels**
When you see a large volume at a high level, many people’s first reaction is fear. But actually, it’s not necessarily bad. High volume at a high level isn’t always a bad sign. The key is to understand what this volume signifies — is it genuine accumulation by funds, or are they unloading? This requires comparing with historical trading volume and observing the strength of the price trend. If the volume surges while the price is making new highs, it might actually be an opportunity. Conversely, if volume increases but the price stalls or even declines, that’s a dangerous signal.