Many people get trapped in one pit when trading cryptocurrencies — they get emotionally hijacked by short-term fluctuations, ultimately losing everything. In fact, the market is like a magnifying glass of human nature: rapid rises and slow declines are mostly for accumulating positions; sudden surges followed by crashes are often to trap retail investors. To survive this game, the key is to learn when to hold back and not buy.

Here are six practical golden rules, distilled from numerous lessons learned through multiple cycles of bull and bear markets:

**Volume is the footstep of funds** — Candlestick charts show the results, but the true intent is hidden in the trading volume. Analyzing the relationship between volume and price is more accurate than simply looking at ups and downs.

**Be cautious of rebounds after a flash crash** — When market sentiment becomes overly enthusiastic, any negative news can trigger chain reactions of panic selling. Rebounds during this time are often trap setups.

**Having the courage to hold cash and not obsess is top-tier risk control** — Diversify investments, set strict take-profit and stop-loss levels; it’s a hundred times smarter than holding a full position and stubbornly enduring losses.

**Wait for confirmation of increased volume after a series of shrinking volumes at the bottom** — Use time series analysis to identify market cycles, rather than going all-in based on gut feelings.

**Volume drying up at high levels is more dangerous than volume expanding** — When RSI exceeds 70, it indicates an overbought condition, signaling it’s time to reduce holdings.

**Don’t be fooled by "financial freedom" motivational slogans** — Data analysis is meant to identify risks and avoid pitfalls, not a magic spell for overnight wealth.

From not understanding candlesticks to speaking with data, it’s never luck but always respect for market laws and discipline that makes the difference.