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I've been trading for nearly 6 years, from an initial 8,000U to 1.8 millionU. There are no insider tips or mystical secrets—just a method I figured out together with a friend who started early. It took over 2,100 days of relentless effort to summarize this experience.
Trading, at its core, is like everyday life—steady and steady, gradually building confidence. Recently, I summarized 6 "pitfall avoidance tips." Mastering one can help you avoid detours; truly understanding three can help you surpass 90% of retail traders.
**First: Recognize the Trap of Wash Trading**
When prices rise like a rocket, and fall slower than a turtle—that often indicates the main force is washing out or digging a trap. The true top features a volume spike followed by a sudden "plunge from high altitude." The 2021 LTC rally is a classic example—top out and then a waterfall decline, almost costing half a year's salary.
**Second: Flash Crashes Do Not Equal Bottoms**
A sharp decline with a weak rebound is often a signal that the big players are closing their positions. When a certain coin crashed 80% in 2023, many thought it was the bottom, only for it to drop another 50%. The real bottom should be characterized by decreasing volume and consolidation; volume reflects the true intent of the big players.
**Third: Study Volume at Tops and Continuity of Volume at Bottoms**
A top with volume is interesting; no volume means it's really over. But a single large volume spike at the bottom is usually a bait; only sustained volume indicates genuine accumulation by the big players.
**Fourth, Fifth, and Sixth: Merging Emotions, Human Nature, and Mindset**
Crypto trading is fundamentally about manipulating people's emotions. From the "big move" in volume to the final "full draw of the bow," every fluctuation hides market sentiment. The greatest moat in trading is mindset—no greed, no fear, not fighting alone, sticking to your rhythm.
The most lacking trait in the crypto world is mutual support. Mistakes are not bad; sticking to the correct methodology allows each error to become experience. Long-term survival depends on following the right ideas, finding the right direction, and staying clear-headed in the face of market fluctuations.