Trend, key levels, and entry signals are the three core elements

Trading is actually not that complicated. The truly complicated thing is human nature. The market is always changing, but the core logic that can make money always revolves around three words: trend, key levels, entry signals.

As long as you truly master these three things, not to mention making big profits, at least you won't repeatedly suffer huge losses.

First, if you misjudge the trend, everything else is wrong

Many people lose money not because they didn't choose the right position, but because they got the direction wrong.

If you go long in a downtrend, you will get washed out as soon as there is a slight rebound; if you go short in an uptrend, even if you make a little profit in the short term, you will eventually be wiped out by the main rising phase. Therefore, the trend is direction and foundation.

How to judge the trend? Look at the larger cycles, like 4 hours or daily charts; don't just keep staring at the 5-minute candlestick charts excitedly, as that is just giving away money.

Secondly, key levels determine life and death

If you see the trend correctly, next you need to look at key levels. The market doesn't rise in a straight line but jumps step by step. Key levels are like steps on a staircase; whether you can stand firm depends entirely on this step.

The so-called support and resistance are actually the positions that the main force cares about the most. You need to enter at the place where 'they want to exert force', not rush into 'where they want to sell'. If you don't see the key levels clearly, the result will be that you get blown out as soon as you enter.

Thirdly, entry signals determine how much profit you can take

With direction and position, ultimately it depends on the signal to decide when to enter. This signal is not based on feelings, but on the strategies you are familiar with. It could be a candlestick pattern, a change in volume, a MACD divergence, or a key bullish candle.

But the key point is: you need to have a 'standard action', instead of randomly clicking in. Trading is not about feelings; it's about repeating the same logic. You don't need to master a bunch of indicators; mastering one or two signal recognition methods that you are familiar with and can stably reproduce is enough.

Summary:

The trend tells you which direction to stand in

Key levels tell you when to get closer

Signals tell you whether you should take action

All three are indispensable; once you understand them, trading can have its rules.

Lastly, let me remind you: if you don't understand the trend, don't touch contracts; if you don't understand key levels, don't frequently trade; if you don't understand signals, don't take heavy positions. Making money is not about courage, but about rhythm and judgment.

Practicing these three things well is worth more than watching the market for 10 hours every day.