After years of messing around in the crypto world, I almost wiped out my entire savings a few years ago—my account shrank from its peak to less than 30%. I still remember clearly the feeling of sleepless nights.



After experiencing enough losses, I finally figured out a set of strategies to avoid pitfalls. I can't say they guarantee profits, but they can definitely help you steer clear of most deadly mistakes.

Observe the retail investors around you; almost all of them are caught in the same vicious cycle: when the market drops, they stare fixedly, hoping for a rebound to break even; when it rises, they rush to sell everything, fearing profits will vanish instantly. And what’s the result? Usually, they operate in the opposite direction.

The correct approach should be the opposite. When the market is rising, be patient and hold your positions; if it breaks below a key support level, cut your losses immediately. "Let profitable trades run longer, and cut losing trades quickly"—this trick can help you avoid 80% of market traps.

Volume is the true heartbeat of the market. A shrinking volume during a rally often indicates room for further upward movement, while a decline below support with decreasing volume usually signals that someone is quietly positioning.

Don’t hold too many positions; two or three truly high-quality assets are enough. The more dispersed your funds, the easier your mindset will become chaotic; short-term sharp drops are often followed by rebounds, especially when there's a sudden surge at the end of the trading session—most likely a trap for the next day.

The market has its own rhythm. Instead of struggling to predict the direction, it’s better to follow the main trend. Focus on short-term moving averages for short-term trades, and hold onto medium-term moving averages for mid-term strategies. If it breaks below, don’t force it.

Popular coins like ETH, as long as trading remains active and popularity persists, tend to rebound after falling. The real opportunities worth participating in are those with high odds and a good chance of winning.

Another key point: after making a big profit, always leave some cash on the sidelines to rest. The market is best at harvesting inflated mindsets; don’t fight hard during losses—wait until the market atmosphere truly turns bullish before re-entering.

Ultimately, trading crypto is a test of patience—sticking to discipline, waiting for opportunities, and resisting temptations.

Market movements will never be absent; the real challenge is controlling your greed and fear. Over these years, I’ve truly realized that the biggest enemies in crypto trading are never the market itself, but human greed and fear.
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DustCollectorvip
· 12h ago
Basically, it's a mindset issue; most people simply can't do it. --- I've never believed in stop-loss discipline, but after a big loss, I understood why. --- The volume contraction and rise, I've observed it several times and it has proven true. --- Holding cash is the hardest; just making a little profit makes me feel uncomfortable all over. --- Two or three targets are really enough; as a retail investor, I am just too greedy. --- Regarding ETH's rebound, it depends on the overall market sentiment, not an absolute. --- I’ve been caught by the trap of late-day pump and dump; now I just don't look at late-day orders. --- The enemy of human nature, this saying is right; I am my own biggest opponent. --- Wait, how does your theory handle volatile markets? It seems you haven't mentioned it. --- Sticking to discipline sounds simple, but once an announcement comes out, everything gets chaotic.
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WalletDivorcervip
· 01-10 05:00
Exactly right, the account shrinking incident was truly my turning point. Now I hold only two coins long-term, patience is the most important.
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WealthCoffeevip
· 01-08 17:50
There's nothing wrong with that, but executing it is extremely difficult. I used to think the same way, but I still got caught in multiple trap setups. My mindset collapsed, and all technical analysis was useless. The move of shrinking volume and rising can indeed be used, but the key is to have patience and wait. Most people can't wait. I now have a deep understanding of resting with an empty position; making profits and then leaving is the way to go. The biggest problem for retail investors is greed. When they see a rise, they want to eat more, but in the end, they get caught and harvested. The discipline of stopping loss when the moving average breaks must be followed; I have learned this lesson before. Two or three coins are enough. That's how I do it now, and my mindset is much more stable. A rise at the end of the session is nine times out of ten a trap to lure more buyers. I have fallen into this trap before and will never be fooled again.
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ZkProofPuddingvip
· 01-08 17:50
That's so true, it's really about mindset. I used to be the type to watch a decline obsessively, and when it rose, I’d rush to sell, which caused me quite a few losses. Now I understand that stop-loss is truly more important than anything else; otherwise, a black swan event can wipe you out completely. Your method really hits the point; being able to read volume well can help you anticipate many things in advance. Now, I’m just practicing patience with empty positions, which is much harder than opening a position haha. The biggest mistake I made was having too many positions at once. I got excited and bought four or five different coins, and my mindset got completely chaotic. Now I focus on just two or three targets, and surprisingly, my sleep quality has improved. I need to remember that the late-day surge is a trap to lure in traders—I've fallen for this trick more than once. All of this is gained through blood, sweat, and tears. The calmness behind these words definitely comes from countless pitfalls I’ve stepped into. That last sentence is brilliant: the real enemy in trading cryptocurrencies is your own greed. Staying disciplined is a hundred times harder than just watching the market trends.
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AirdropChaservip
· 01-08 17:50
That's so right, the hardest part is the mindset. I used to panic at the first sign of a dip, insisting on chasing highs and bottom-fishing, but it always led to counterproductive moves. Now I've learned my lesson: set a stop-loss and walk away. Not watching the market actually earns more. --- Understanding stop-loss is really something you only learn after experiencing losses. How many people get stuck at that psychological barrier, knowing they should cut but just can't bring themselves to do it... --- Two or three coins are enough, I agree with that. In the past, I spread out and bought ten or more different tokens, but I never really understood any of them and ended up getting wrecked. --- I've been caught by the trick of pushing prices up at the close and then诱多 the next day. Now I specifically avoid that time period. It's such a classic move. --- The feeling of being out of the market is actually the hardest, but often that's when you avoid the biggest losses. Humans are greedy, can't stop. --- This trading strategy has no flaws, but executing it is extremely difficult. Those who can really do it have all made it big. --- I've never quite grasped the concept of shrinking volume; can you elaborate on that? --- I'm especially touched by the weaknesses of human nature. Both overnight riches and overnight bankruptcy can drive people crazy. --- ETH is indeed resilient to drops, but don't treat it like an ATM. You still need to follow the trend.
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FudVaccinatorvip
· 01-08 17:46
It's really quite heartbreaking, especially that line "the enemy is human nature." I learned this lesson from bloody experiences myself. Now, holding onto just two or three coins without moving is the best strategy. --- Haha, I agree about this theory about 80%, but honestly, saying that a late-day surge is a trap to lure buyers is still too absolute. I've seen quite a few times where the price hits the daily limit directly. --- The explanation about volume contraction and price fluctuations is well put. I hadn't paid attention to this detail before, no wonder I kept missing out. I feel like I've found the secret. --- I just want to ask, have I really made back the money over these years, or is it just that my mindset has improved and I’ve been avoiding risks? --- The last two sentences are true. Both losing and getting rich can kill you mentally. I've seen too many cases from millions to bankruptcy. --- Holding just two or three coins, I've repeatedly verified this. Retail investors tend to crash more when they diversify too much; focusing firepower is the way to survive. --- This is the harsh truth about the crypto world. No one tells you this, but everyone who survives knows it.
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MoodFollowsPricevip
· 01-08 17:42
That's right, but you have to compete with yourself. At first, I was so greedy, wanting to copy everything, and ended up losing big. Now I've finally learned to be smart, simplifying my holdings has really changed my mindset. But I still get easily tricked by fakeouts... I need to keep practicing.
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UncommonNPCvip
· 01-08 17:35
Although this article is very accurate, I think most people still can't change... including myself sometimes Why is it so easy to believe, only to be disappointed again It's easy to say but hard to do, mindset is really something you can't teach No one can escape human weaknesses, knowing is one thing, execution is another Let's see if I can stay calm the next time there's a crash... probably a long shot
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