This year I took on quite a few trades, paid a lot of tuition fees, but also summarized a relatively stable trading framework.

**The trading framework is actually not complicated; the core is the coordination of multiple timeframes**—using the daily chart to see whether the overall trend is up or down, the 4-hour chart to determine the best entry points, and the 1-hour chart to precisely find the most optimal entry point. For example, after the daily chart breaks through a key resistance, if the 4-hour chart shows a pullback to a support level, then the entry point on the 1-hour chart becomes extremely valuable.

In terms of indicators, RSI is the easiest to use but also the easiest to trap. When it’s above 80, don’t chase the high; although it looks bullish, it’s actually overbought. Conversely, below 20 does present opportunities, but caution is needed—don’t go in recklessly.

**There are two most common pitfalls**. One is the liquidity trap—small-cap coins are surprisingly easy to manipulate, especially when the bid-ask spread exceeds 1%. Never try to enter with large funds in such cases. The second is the temptation of leverage—using 5x leverage can indeed double your capital quickly, but you need to keep a 3x buffer, meaning your account should maintain over 60% available funds; otherwise, a sudden fluctuation can lead to liquidation.

Ultimately, risk control is the basic condition for survival. Only act during times when the “odds are high + risk is low,” such as when mainstream coins outperform altcoins. Also, allocate some low-correlation assets, like stablecoins or anti-inflation tokens, to hedge against black swan events. Trading is ultimately a race of probabilities, not just following the market.