#TradingAnalysis101 When this trader first entered the world of cryptocurrencies, he was sure that trading was easy money. He bought low, sold high, and got rich. But the market quickly made him understand that it had other plans for him.

First lesson: "The rocket" doesn't always fly upwards.

Starting with $1,000, he invested in a "promising" coin. Let's call it PumpCoin. The price went up by 50% — a great sign! He didn't sell. Then the price dropped by 30% — he bought more. Then another 50% — he bought even more. A week later, his balance looked like this:

• Investments: $3,000

• Balance: $250

• Experience: invaluable