I recently had in-depth conversations with many traders and wanted to organize my insights, which might help everyone avoid some detours.

The most common misconception is treating technical indicators as tools for predicting market trends. This is actually incorrect—the indicators themselves are not that magical. Their true function is to help you understand the current state of the market. But there is a key point here: understanding what the market looks like right now does not mean you know how to trade. Even more so, it does not mean you have a complete and executable trading system.

Many people make mistakes here. They gather a bunch of indicators like MACD, Bollinger Bands, and RSI, staring at the charts every day looking for signals, but still end up losing money. Why? Because there is no closed loop. There is no stop-loss plan, no risk management, and no contingency plans for sudden market movements; having only technical indicators is just self-deception. As this continues, the more indicators there are, the easier it is to fall into a trading illusion—every candlestick seems to present an opportunity, only to be slapped in the face by the market.

Large cryptocurrencies like BTC and ETH are highly volatile and attract significant institutional funding, making it especially important to have a strategy in place. Rather than blindly trusting indicators, it is better to spend time refining your trading framework: when to enter the market, when to cut losses, and when to increase your position. This closed loop is the foundation for making profits. I hope my brothers can avoid this pitfall.