Many beginners feel confused when entering the market for the first time. I have also experienced a stage where I lost thousands before gradually finding the pattern. Today, I want to share the practical experience I’ve summarized over the years, hoping to help everyone avoid detours.

**Following the trend is the top priority**

In the early days, I often traded against the trend, always thinking about a rebound during a decline, only to get caught deep. Later, I truly understood — you must follow the mainstream trend. Small rebounds during a decline are often traps for more losses, while small pullbacks during an uptrend are genuine entry opportunities. This principle sounds simple, but implementing it requires overcoming many psychological barriers.

**The trap of skyrocketing coins is the most deadly**

Coins that surge wildly within a few days seem to offer endless opportunities, but don’t be fooled. Coins that experience multiple rounds of rapid increase are rare, and sideways consolidation at high levels usually indicates an upcoming correction. Chasing high and entering the market often results in being caught at the top, with losses that are hard to estimate.

**Three indicators are enough to handle most market conditions**

My toolkit is very simple: MACD is used to grasp the main trend, but don’t just look at the golden cross; combine it with the overall trend background for judgment. RSI helps assess market strength and weakness, allowing precise entry and exit timing. VPVR is used to identify support and resistance levels. Overloading on indicators only creates confusion; practicality is the core standard for selection.

**Adding positions during losses is digging a hole**

Once, I tried to lower my average cost when the coin price was falling, increasing my position as it dropped, and the result was doubled losses. This lesson was deeply engraved in my mind. Adding positions should only be done when the trend is confirmed and profits are being made; at this point, risks are relatively controllable. If you add during a loss, you are continuing to make mistakes based on previous errors.

**Volume-price relationship determines the risk-avoidance moment**

A prolonged sideways movement at a low level, followed by a sudden increase in volume and successful breakout — this is a key signal for strategic deployment, and the market is likely to officially start. Conversely, high volume at a high level with stagnant prices indicates you should decisively exit, as a correction is highly probable. These details can help you avoid risks at critical moments.

**Multi-timeframe resonance improves judgment accuracy**

I always refer to 1-hour, 4-hour, daily, and weekly charts simultaneously. Focusing only on short-term K-lines can easily lead to confusion due to volatility. For example, if the daily chart is in an uptrend, a pullback on the 1-hour chart is often an opportunity; but if the weekly chart is in a downtrend, short-term rebounds are not worth over-optimism. The big cycle sets the direction, while the small cycle finds the rhythm. Combining both leads to more reliable judgments.