Many people ask me, how can I avoid detours in the crypto world? My answer is simple—rely on accumulation, review, and continuously refine your trading skills. Over the years, I’ve experienced many pitfalls with real money and summarized six practical principles. Today, I want to share these experiences in hopes of helping friends who are still exploring to avoid 90% of common traps.

**First: Don’t panic and cut losses immediately after a sharp rise followed by a slow decline**

When the price suddenly surges and then begins to decline gradually, most beginners will panic and sell off. But my experience tells me that this pattern is often a "shakeout" by the market manipulators—using a washout to clear out retail investors with unstable mindsets. The truly dangerous top signals are actually the opposite: a violent surge followed by an instant waterfall decline—that’s when the market’s final harvest occurs.

**Second: Be cautious of rapid drops followed by slow rebounds, it’s likely a trap to lure more buyers**

After a sharp decline, if the price slowly bounces back and you look at the candlestick chart thinking "it’s almost bottomed out, I can buy now," don’t fall for it. This seemingly warming trend is often the manipulators’ last trick to attract more buyers. The illusion of "already bottomed out" has caused many to fall deeper into the trap.

**Third: High volume at a high price doesn’t necessarily mean you should escape; lack of volume can be a hidden risk**

Many people’s instincts are the opposite. When the price suddenly surges with high volume at a high level, it’s not necessarily a signal to exit—the market might still have a second wave. Conversely, be wary of a sudden "no volume" situation at a high level. If the market is eerily quiet, with almost no trading activity, it’s often a sign of an impending collapse.

**Fourth: Fake volume at the bottom; sustained volume is more reliable**

A single volume spike at the bottom? It’s likely a market manipulator’s smoke screen—don’t be fooled. Only when the price consolidates with decreasing volume for a period and then shows sustained, moderate volume increases is it a genuine sign of accumulation. This detail determines whether you chase the high or patiently hold onto the upward trend.

**Fifth: Those who make money understand that "doing nothing is the best action"**

When you believe in a certain coin, you need patience after buying. It’s not about constantly watching the market, but knowing when to let go. Many people make money but then lose it because they always want to make another trade, thinking there’s still an opportunity. Sometimes, the smartest move is to do nothing.

**Sixth: Risk management always comes before profit**

I’ve seen too many people build confidence after a big win only to lose everything in the next big loss. No matter how promising an opportunity looks, set proper stop-losses. Keep your risk exposure reasonable in each trade and don’t bet all your chips on one direction. This isn’t conservatism—it’s survival.

In summary, trading in the crypto market is never about luck overnight; it’s a process of repeated validation and mental discipline, gradually accumulating experience. Some watch the market for a year, others trade for ten years and still make the same mistakes—the difference lies in whether you review and refine after each trade. I hope these six principles can give you some inspiration.