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Having navigated the crypto world for many years, I want to share the lessons I've learned with you. Instead of saying trading relies on luck, it's more like a form of cultivation. Skills need to be honed, and mindset must be tempered. Today, I’ll share these 6 practical mental strategies, hoping to help you avoid some detours.
**1. Seeing a rally followed by a slow decline? Don’t cut your position yet**
When the price suddenly surges and then gradually slides down, it looks uncomfortable, but it’s often not a signal to escape. Large traders usually do this kind of shakeout—pushing out weak-handed retail investors. The real danger is another pattern: violent surges followed by waterfall declines—that’s the moment to harvest. Major coins like $SOL are most prone to this routine.
**2. Sharp drops followed by slow rebounds? Beware of traps**
When the price plunges and then slowly recovers, it may seem like a bottoming out, but don’t rush to buy the dip. Often, this is the last trick of big players to lure in buyers, making you think the "bottom" has arrived, only for the price to continue downward.
**3. Sudden volume spikes at high levels don’t necessarily mean you should run**
When trading volume suddenly surges at a high price, it doesn’t always mean you should exit immediately; there might be a second wave coming. Conversely, be cautious of sudden volume drying up at high levels—when the market feels dead as a ghost town, it often signals an impending crash.
**4. A single large volume candle at the bottom is unreliable**
A big bullish candle with high volume at the bottom can tempt you to act impulsively, but it’s likely just a trap set by big players. The real signal is when the price consolidates with decreasing volume for a period, then starts to show sustained, gentle volume increases—that’s the true sign of accumulation.
**5. Maintain a long-term perspective**
Short-term fluctuations can be scary, but they don’t change the overall trend. If you believe in a certain direction, don’t let daily ups and downs disrupt your rhythm.
**6. Risk management always comes first**
No matter how good your skills or how accurate your judgment, position management and risk control are the keys to survival. Never go all-in.
These aren’t some profound theories; they are honest lessons learned from falling down a few times in the market. Hope they help you.