Many people lose money trading, and the root cause is simple — always trying to go against the trend.

My first and most important trading rule: the trend is always your strongest ally. Don’t imagine you can precisely buy the bottom or sell the top; the market isn’t that naive, and smart traders also respect the trend.

**How to identify the trend? The most straightforward method is to look at moving averages.**

When the short-term moving average (like the 50-day MA) stays firmly above the long-term moving average (200-day MA), especially when a bullish alignment forms — meaning short, medium, and long-term MAs are lined up from top to bottom — this is a clear upward trend, and it’s time to act. If a "death cross" occurs, where the short-term MA crosses below the long-term MA, you need to be very cautious, as the market may be shifting.

**Why must we follow the trend?** It’s simple. In an uptrend, the price logic is "higher highs" and "higher lows," climbing like stairs — buying during this phase has a higher chance of success. Conversely, in a downtrend, prices are falling step by step. Should you rush in to buy the dip then? That’s like blocking your own path. I’ve seen too many traders try to go against the trend during a decline, only to lose more and more, gradually eroding their capital.

**The key to finding buy and sell points lies in the volume-price relationship.**

Volume reflects real money flowing in; it can’t be faked. What does a healthy rally look like? "Price rising with increasing volume." When prices gently go up and trading volume also expands, it indicates genuine money entering the market, and the trend is sustainable. That’s the signal you should consider entering.