The most psychologically challenging aspect of trading is not a one-sided plunge, but the long correction following a rapid rise. Countless traders choose to cut losses and exit during this phase, only to regret it after the price rebounds.

I have a trader friend who once experienced a desperate night when her account shrank to the limit. Later, she adjusted her mindset and strategy, and her account eventually broke through seven figures. She summarized that the biggest turning point was understanding a principle: the market doesn't target anyone; the key is whether you understand what constitutes risk and what constitutes opportunity.

**A Common Market Pattern**

Mainstream cryptocurrencies often experience a slow correction after a rapid rise, accompanied by gradually shrinking trading volume — this is often a sign of the main force shaking out weak hands, not a trend reversal. They may look similar, but the volume behavior is completely different.

Take BTC as an example. Last year, the price quickly surged from $25,000 to $30,000, followed by a slow correction over nearly two weeks. At that time, panic was widespread in the market, but by observing the volume, you would find that this correction did not involve increased volume; instead, the trading volume was gradually decreasing. This detail is crucial — it suggests that not many people are exiting, and the main force may still be quietly accumulating. This judgment was validated when, after the correction, a new rally began.

**Key Points to Identify Shakeouts**

First, look at the pace of the correction. A true trend reversal is usually accompanied by sharp fluctuations and frequent technical breakthroughs; shakeouts, on the other hand, tend to be more gradual, without intense ups and downs. Next, observe the volume curve. Healthy corrections should show gradually decreasing volume, not sudden spikes with heavy selling. Finally, pay attention to how support levels behave — during good accumulation phases, prices often oscillate within a certain range rather than breaking through and not returning.

These observation methods may seem simple, but applying them in the market requires discipline and patience. Impatient traders often fail to do so, being overwhelmed by short-term volatility and emotions.

**Patience for Real Opportunities**

Compared to frequent trading, doing nothing can sometimes be the best strategy. When you confirm that it’s a shakeout rather than a reversal, the smartest move is to gradually increase positions during the correction, rather than panic-selling. History repeatedly proves this simple principle.