During the trading process, the following practical methods can help you avoid most traps and better grasp the market!

1. Distinguish between high and low, in the same direction.
There is no need to rush to exit during a high-level consolidation; the market often accompanies a new high. During a low-level sideways market, do not blindly try to catch the bottom, as it is highly probable that it will test new lows. Wait for a clear direction of the market change before taking action to avoid being trapped by entering early.
2. During the consolidation period, keep your hands steady.
Most short-term losses stem from impulsive trading during sideways markets. When the market lacks a clear direction, buying and selling is essentially blind guessing, which not only incurs unnecessary transaction fees but also makes it easy to fall into a trap of holding losses.
3. Look at the K-line, find signals
Using the daily candlestick chart as a reference, enter the market when a bearish candle closes, and decisively take profits when a bullish candle closes. Following the trend signals given by the candlesticks is more certain than guessing based on feelings.
4. Understand rebounds and judge the rhythm.
When the pace of decline slows down, subsequent rebounds are often sluggish and weak; if the decline suddenly accelerates, it is more likely to trigger a rapid rebound. It is necessary to predict the strength of the rebound based on the pace of decline to avoid misjudging the timing.
5. Build positions using the "pyramid".
The "pyramid method" is used for building positions, meaning to buy more as prices drop, but the position size should become more cautious with each additional purchase. This method effectively controls risk and is one of the core principles of short-term position management.
6. Continuous rise and fall, prevent trend reversal.
After a continuous rise or fall in the market, it will inevitably enter a consolidation phase. Do not liquidate all at once at high positions or fill up at low positions. After the consolidation ends, there is a high probability of a trend change; if the trend change moves downwards from a high position, it is necessary to promptly liquidate and exit to avoid the risk of a decline.
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