Use the simplest method to earn the most solid money.

Six years ago, I entered the market with 3,000 USD, and now my account has 50 million. I’ve experienced margin calls, taken losses, watched my account go from full to empty, and then from empty back to full. Today, I’ll openly share the insights I’ve gained over these six years of investing real money.

Honestly, if you can truly follow just one of these points below, I guarantee it will save you 200,000. If you can follow three, you will no longer be a retail investor being casually harvested, but someone who truly understands this market.

**First Pitfall: A sudden surge doesn’t mean the end; a slow decline is the real killer**

The most terrifying thing in the market isn’t big rises and falls, but the gradual, grinding decline.

I saw once a coin that shot up 20% in five minutes straight, then traded sideways and declined over the next two hours. It looked like a whale was dumping, right? But the next day, it surged another 50%. I later realized that the slow correction after a quick rise isn’t a sign of a downtrend, but rather a shakeout—whales shaking out the timid investors.

What’s truly dangerous? It’s the flash crash immediately after a sharp rise—that’s a trap set by the big players. The problem is most people get shaken out during the shakeout, missing the subsequent main rally.

**Second Pitfall: A rebound after a sharp decline is even more dangerous than the decline itself**

After a short-term plunge, the market always offers a seemingly good rebound opportunity. People think, “It’s fallen so much, it must bounce back,” and rush in, only to get caught.

Rebounds in a downtrend are the most lethal. Big players use this psychology to dump their last chips. Remember, never catch falling knives—let them hit the ground first. When it stabilizes, then consider buying.

**Third Pitfall: Volume hides the truth, but few can read it**

High volume at a top doesn’t mean the market has peaked. Sometimes, high volume at a high price is the final push by the whales. You need to look at the nature of the volume—at what price is the volume happening? Is it pushing up or smashing down?

What you should really be wary of is decreasing volume at a high level. When volume keeps shrinking but the price keeps making new highs, that’s dangerous. What does it indicate? It shows that the big players have already finished unloading, and the remaining are just bagholders.