A fader that won't hold a stable level tells you the track needs processing
A ‘stable’ fader is one you can set at a fixed level and leave — the track fits the mix consistently at that position and can be left unprocessed. An ‘unstable’ fader keeps needing adjustment: the track pushes too far forward on louder notes, disappears in dense passages, or clashes at certain frequencies, and no single static level achieves a balance you are happy with. That instability signals an unresolved balance problem, and its character points to the fix: a dynamic-range problem (loud pushes forward, quiet vanishes) calls for compression; a frequency-masking or clash problem calls for EQ; other characters point to a mult, high-pass, or phase fix. The converse matters equally: a track whose fader is already stable should be left unprocessed rather than routinely treated — a decision experienced engineers make far more often than beginners.
Examples
A drum room mic that is muffled at one level but overpowering at another cannot find a stable position — a cue for high-pass filtering and/or compression before it blends. A slap-bass fader where loud slaps clip out of the mix while light plucks disappear signals compression with fast attack / slow release to even out the transient range.
Assessment
Explain what fader instability indicates about a track and how the heuristic decides between processing and a static level. Give one example of a fader problem and the specific processing (and why) that would address it.