Trading isn't actually that complicated. The core idea is particularly simple—if you grasp the key points, you can avoid a lot of detours.



Step one: first get a clear view of the market's current big-picture direction: is it an uptrend or a downtrend? Once you get the direction right, you've already succeeded halfway. Many people get caught up in all sorts of complex indicators and end up overlooking the most straightforward price movement characteristics.

My method for judging uptrends and downtrends is simple: if a market decline that takes a week to occur can be fully recovered within just three days, that's a textbook uptrend. In this kind of market, capital is willing to buy the dips—the selloff is only a temporary pullback, and prices quickly rebound. The overall trend is upward.

Conversely, if the market takes a week to slowly climb higher but then loses all those gains in a single day—giving back everything that was earned—that's a clear downtrend. In this kind of market, rebounds lack momentum, and rallies are only temporary. Any gains are quickly wiped out, and the overall trend is moving downward.

The logic becomes clear: if you confirm it's an uptrend, buy in and follow the direction; if you judge it's a downtrend, decisively sell and don't stubbornly wait for a rebound. Don't get hung up on fancy theories and tricks. Identify the big direction, trade with the trend, don't try to guess where the top or bottom is, just follow the major direction—that's the most reliable and efficient approach.

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