The growth in the crypto world often comes from repeated falls. Those who persist and continuously refine their trading skills will ultimately reap market rewards.



In my years of trading, I’ve stepped into many pits and summarized some core practical rules to share with beginners—remembering these principles can at least help you avoid many detours.

**About Choosing Entry Points**

Most people tend to lose money when chasing rallies. The real opportunities are actually hidden in the pullbacks after sideways consolidation, not during sharp price surges. It sounds simple, but actually doing it is very difficult—because human nature is inherently afraid of missing out.

The more enthusiastic the market, the more vigilant you need to be. The noisier and more heated the discussion, the higher the risk. This is not pessimism, but an understanding of market cycles. The volatility of coins like $RIVER clearly illustrates this point.

**Understanding Rhythm Through Line Patterns and Volume**

A gradual rise with small bullish candles is usually a healthy upward signal, but a sudden large bullish candle rushing up should raise caution for a potential top. After a rapid surge, if support levels are not yet confirmed, don’t rush to heavy positions.

Volume is a good teacher. A sharp decline with no volume often indicates a shakeout by the market maker, but a gradual decline with increasing volume should not be taken lightly. If the price breaks below a key support level, instead of stubbornly holding on, it’s better to exit and observe. Look at larger timeframes like daily and weekly charts, follow the long-term trend, and avoid letting intraday fluctuations dictate your decisions.

**The Truth About Price and Volume**

Price rises without volume follow-through? That’s often a trap for false signals. Conversely, if after a volume-dipped new low, there’s a sudden surge in volume and price rebounds, that’s a genuine sign of strength.

The path in the crypto world is built through learning from pitfalls. Stick to these principles, and you’ll find trading becomes much clearer.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
TokenToastervip
· 01-20 07:05
Really speaking, chasing the rise almost bankrupted me. Consolidation and pullback are the real deal, but I just can't help it. Places with many people are risky, this hits home.
View OriginalReply0
SocialFiQueenvip
· 01-19 13:30
That's right, chasing the highs is truly a deadly disease, always resulting in heavy losses. The real opportunity is during the sideways correction, but no one can hold back. When volume and price don't match, just run, don't hesitate. The true experience comes from stepping into traps, this saying is harsh. It's easy to say but hard to do, maintaining the right mindset is the most difficult. Are there still people chasing highs now? I'm completely scared off. Looking at the larger cycle has really saved me many times; intraday charts can be deadly. The signal of volume increase and rebound must be seized; missing it means waiting another year.
View OriginalReply0
ApeEscapeArtistvip
· 01-18 15:50
That's right, chasing the rally is really just a way to give away money. The dip during sideways consolidation is the actual entry point, but unfortunately most people can't wait. Speaking of which, it's really hard to avoid missing out due to fear. The combination of volume and price is well explained; a sharp decline with low volume is basically a shakeout, and only a surge in volume is a true signal. If the support level breaks, it's time to run; those who stubbornly hold are just lying flat. Looking at the larger cycle can indeed help avoid some pitfalls, but the fluctuations on the intraday chart can really drive people crazy. This kind of summary is useful for beginners, but it all depends on whether they can endure the first few waves of selling.
View OriginalReply0
MechanicalMartelvip
· 01-18 15:50
It's easy to say, but the key is not to be greedy. My biggest lesson learned is that during that surge, I lost three months' worth of salary. Now I look at the K-line chart and wait for a pullback before taking action.
View OriginalReply0
0xDreamChaservip
· 01-18 15:48
Chasing the rise is like giving away money, a painful lesson I’ve learned Exactly right, a pullback is the real opportunity, but do you know most people can’t wait The risk is greatest where there are many people, this is a rule to engrain in your mind I don’t look at upward movements that are not supported by volume, it’s a waste of time If the support level breaks, just run, there’s no point in hesitating, only living can bring profit Over the years, I’ve survived by relying on long-term cycles, minute charts are truly poison Decreasing volume to a new low, then rising again on increased volume—this is a signal I trust, everything else is just temptation
View OriginalReply0
DaoResearchervip
· 01-18 15:44
Based on the trading model in the white paper, the assumptions in this article hold within a 95% confidence interval, but I have to say— the real issue lies in the incompatibility of Token Weighted Voting incentives... No, that's off-topic. The core content of the article is essentially the application of game theory equilibrium; chasing the trend is fundamentally a herd effect under information asymmetry, which is also very evident in DAO governance. It’s worth noting that the $RIVER case actually reflects flaws in the design of liquidity mining mechanisms. For a detailed analysis... never mind, beginners might not understand. Just remember one thing—don’t buy tokens in high-traffic discussion areas, as the risk factor there has been confirmed by on-chain data.
View OriginalReply0
airdrop_huntressvip
· 01-18 15:26
Chasing gains and losing money is truly a repeated painful lesson Consolidation and pullbacks are the real opportunities, but who the TM can resist chasing? Volume is a great teacher—this saying is spot on. When there's no volume and prices drop sharply, watch out and don't be fooled into panic selling A gradual decline on high volume is the real danger; too many people get this detail wrong The trap of诱多 (诱多: false breakout or trap to lure in buyers) is well explained. I've seen too many cases of big bullish candles smashing the market Sticking to this set of rules is difficult, but it definitely results in fewer losses compared to reckless trading
View OriginalReply0
  • Pin