There’s really no such thing as an overnight riches myth in trading. After eight years in the game, starting with a small amount of capital and now being able to profit steadily, I’ve experienced liquidations, stop-losses, missing out on rallies—paid every bit of tuition along the way. Lately, I’ve seen many people chasing pumps and panicking in dumps, so I wanted to share a few observations I’ve picked up through real trading—lessons paid for with real money.

Let’s start with a market signal that’s easy to overlook—a lot of people don’t understand the logic behind “sharp rises and slow declines.”

What does “sharp rise, slow decline” mean? It’s when the price surges quickly in a short time, like gaining more than 7% in 15 minutes, but instead of dropping rapidly after, it declines slowly and gently, like squeezing toothpaste. This often doesn’t signal a drop; it means the main players are accumulating.

Why? Because real distribution doesn’t give you time to react. The hallmark of a pump-and-dump is a sharp rally followed by an immediate plunge—by the time retail traders realize what’s happening, they’re already trapped at the top. But if the price pulls back slowly after a rise, and trading volume doesn’t spike, it usually means the big players are using time to shake out weak hands through minor fluctuations.

There was a textbook case in early June. A major coin jumped 8% in 15 minutes, then ground down slowly with small red candles for the next two days. Many thought it was going to fall and hurried to cut their losses. On the third day, it broke out to a new high, leaving those who exited early watching the rally from the sidelines.

So the key is to watch the speed of the drop and the volume after a sharp rally. Slow drop with decreasing volume = mostly a shakeout; rapid drop with surging volume = high probability of distribution. Understanding this can at least help you avoid getting shaken out during a shakeout phase.

Of course, there’s never a 100% rule in the market, but by observing more and reviewing trades, you can always improve your win rate.