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The recent market fluctuations have started again these days, and my private messages are filled with confused voices—"Can I still buy now?" "Will it drop through directly?" Seeing these questions, I am reminded of some observations from my years of analysis.
To be honest, every fluctuation in the crypto market follows the same script: retail investors either chase after the rise or panic and cut losses. In fact, most people lose money on two main points—first, they can't interpret the signals clearly; second, they can't control their emotions.
Having been in this market for so many years, I’ve seen both overnight riches and sudden liquidations. Later, I realized that those traders who live more comfortably rely not on luck, but on a few repeatedly validated rules. Today, I want to share these rules.
**Rule 1: Slow Decline After Rapid Rise**
This is the easiest trap to fall into. Many see a surge and then a slow decline, thinking it's the top, and hurriedly cut losses. But in reality, this is precisely the rhythm of the market makers shaking out positions. The key is to watch the trading volume—if the volume remains, stay patient and hold on, don’t be scared out by the shakeout. Usually, being shaken out is the starting point for the next rally.
**Rule 2: The Trap of Sharp Drop and Rebound**
Suddenly crashing, then gradually climbing back, looks like a "buying opportunity," but in fact, this is the gentlest way to offload. Retail investors are most likely to rush in at this point, and that rebound often turns into the final sell-off. Many people fall for this trap.
**Mindset Management in Trading**
Ultimately, 90% of retail investors’ losses come down to the same issue: inability to interpret signals and poor emotional control. When volatility hits, panic sets in; impulsively acting—either chasing highs or selling at lows—is common.
The real difference lies in whether you have a usable method and whether you have the patience to stick with it. The market’s rules are always the same; each cycle repeats itself. Understanding the logic behind these signals, and not acting recklessly, already puts you ahead of most people.