To be honest, there are no secrets in this industry. Some can multiply their holdings a thousand times in half a year, while others return to the pre-liberation level overnight. The difference isn’t luck; it’s whether you can learn something from each pitfall. Up to now, my core belief is—treat trading as cultivation, where skills are the stepping stone, but mindset is the final fortress. The following six points may be hard to swallow, but truly understanding just one can help you lose less money; mastering three can set you apart from most retail investors.

**1. Slow decline after a sharp rise is true distribution; don’t be fooled by washouts**
When the market suddenly surges, many panic and sell, only to watch the main upward wave fly away. Conversely, when prices slowly slide down, some stubbornly hold on, hoping a rebound will save them. In reality, the signals of a top are few: a rapid surge followed by a sudden loss of momentum—at this point, the big players’ goal isn’t to help you profit but to make you willingly take the bait.

Real approach: Don’t chase during a sharp rise; wait for a pullback confirmation before acting. Once a downtrend forms, cut losses immediately—don’t wait.

**2. The rebound after a sharp decline might be a false alarm**
When the coin price suddenly halves, the temptation to buy the dip is greatest. But a weak rebound is like a dying patient’s last gasp—often the final cut. A simple criterion: if after a sharp drop, the rebound lacks volume, it’s a sign that the funds have already exited completely.

Operational tip: When you see a weak rebound after a sharp decline coupled with shrinking volume, don’t hesitate—run quickly.

**3. High volume at the top indicates contest; no volume at the top means imminent decline**
At the top, a lot of trading activity suggests bulls and bears are still battling fiercely, and the market may fluctuate further. But if the price has already risen to a high level and trading volume diminishes, that’s dangerous. A rise without volume is like a house built on sand—one gust of wind can bring it down.

Remember: volume is the most honest indicator—it never lies to the big players. No volume at a high point, no doubt it’s the top.

**4. Bottom formations are diverse, but only one type shows true volume bottom**
Bottom patterns vary: some are V-shaped rebounds, others are slow climbs. But all genuine bottoms share a common feature—sudden surge in volume. This indicates a major shift in holdings and real capital entering the market. If the price seems very low but trading is cold, it’s probably not a true bottom, just a temporary low point.

Practical tip: Always confirm the bottom with volume; low prices without volume are not safe.

**5. Support levels broken are just paper tigers**
Technical levels are often exaggerated, but how many truly believe in them? Once a support is broken—say, a moving average or trendline—the next time the price hits that level, it won’t hold anymore. Because those who held firm before have already been shaken out, and confidence collapses.

Simple logic: broken support turns into new resistance, and vice versa.

**6. 99% of V-shaped rebounds after a big drop are scams**
Especially those rollercoaster-like, super-fast rebounds—they look exciting but are often bait set by big players. Genuine strong rebounds should have clear signs: steady volume, and reclaiming key moving averages. Those that shoot up instantly are usually designed to attract chasing buyers before continuing to dump.

Plainly: the faster the rebound, the more terrifying it is. Patience in rebounds makes them real.

Final note—once you see through these tricks, reading K-line charts becomes as clear as X-ray images. Technical analysis isn’t mysterious; it’s a game of probabilities. But managing your mindset is the line between making money and losing it.