Having struggled in the crypto world for many years, I've seen too many people fall due to emotional trading. Today, I want to discuss three trading rules that are often overlooked; these are lessons learned with real money.

**Rapid rise combined with slow decline? Most likely a washout.**

Do you remember that market in 2021, when certain coins surged by 30% in a single day, and then entered a slow decline? You thought it was over, and many people hurried to cut their losses and exit. As a result, the next week it doubled. This is a typical washout tactic - a rapid rise ignites market enthusiasm, while a slow decline is to shake off impatient holders. What are the biggest fears of the market makers? Your composure. The more anxious you are, the more opportunities they have. Conversely, a slow decline is not necessarily a bear market signal; it may actually hide opportunities. The real danger is a sudden crash after a massive surge.

**The rebound during a sharp decline is the most dangerous**

When LUNA crashed, I witnessed countless people jumping in during the rebound, only to be buried even deeper. Any rebound during a downturn feels like a sugar-coated trap—the manipulators don't profit from their conscience but by creating illusions. My own approach is quite clumsy: I resolutely do not bottom fish during a sharp decline; I must wait for two signals to appear simultaneously—a shrinking volume doji star + a contraction in trading volume with green bars. Both must be present, one is not enough.

**Look at the trading volume from the top, not the K-line numbers**

During a consolidation at a high level, continuous volume indicates that both bulls and bears are still pulling against each other, giving hope for a breakout. However, if the trading volume suddenly shrinks, it’s like an eerie calm before the storm—this is a signal from the market makers to withdraw their support, and it's time to exit. Last year, when a certain AI concept coin experienced low volume at a high level, I decisively liquidated my position, thus avoiding a subsequent 40% drop.