Recently, I've been thinking that instead of following rumors and hearsay, it's better to summarize the pitfalls I've encountered in the market and share what real trading looks like.

I'm 37 years old this year, having traveled from Fujian to Hangzhou, and I've been in the cryptocurrency world for 8 years. Over the years, I've seen too many people making quick money and losing quickly in the market. Only later did I realize a simple truth: those who can consistently take money out of the market never rely on luck or rumors, but depend on a set of verified, stable logic.

**Slow Decline After Rapid Rise**

This kind of movement is the most frightening. The market surges rapidly upward, then begins to slide down day by day. Most retail investors panic when they see this and quickly cut their positions and run. But in my experience, this is often a market pattern—whales are creating panic to make people hand over their chips.

The truly dangerous signal is the kind of rapid spike with large volume followed by a sudden crash. This indicates that market sentiment has reached its peak, and the main players are slowly offloading. Corrections in a bull market are normal—like breathing—inhale, exhale. What’s abnormal is a sharp decline that never recovers.

**Sudden Crash Followed by Slow Rebound**

Conversely, the market suddenly drops sharply, then begins to climb slowly. This pattern is most likely to deceive people. Many think, "It’s fallen so much, it should be about over," and rush in to catch the falling knife, only to find themselves caught halfway up the mountain.

My iron rule is: never try to catch a falling knife. Whales are not sentimental—they don’t care if the market is panicking or not; they will sell when they want to. The true bottom isn’t formed by a V-shaped reversal, but by time gradually grinding it out. Those eager to bottom fish are usually the next wave of bagholders.

**Volume Shows Who’s in Control**

During high-level consolidation, it’s crucial to watch what volume is doing. If the volume remains high during the consolidation, it indicates that funds or main players are still pushing upward, and there might still be a chance for a rally. But if the volume suddenly dries up and the market becomes eerily quiet, it’s time to be cautious.

Volume is like the market’s thermometer; it tells you whether the trend still has life. A rise without volume is like paper—easily torn apart. Conversely, a continuous decline in volume often signals that a major event is approaching.

Over the years, I’ve relied on observing these details to avoid many mistakes. Instead of dreaming of overnight riches, it’s better to learn how to survive steadily amid market fluctuations.