Today is still a beginner-friendly session, let's chat about something practical — how to read the market. I believe many people have experienced this: opening market software dozens of times in a day, feeling like they are working really hard, but the more they stare at the market, the faster they lose money. On the contrary, those seasoned traders who genuinely make money in the market often spend no more than 20 minutes a day looking at the market, yet always manage to catch the market's turning points.

After all, most people are anxious about the “results” of price fluctuations but don’t look at the “reasons” that drive the market. I’ve talked with many traders who have been in the game for years and found that their efficiency in reading the market is extremely high. It’s not that they don’t care about the market; they’ve long figured out which information is genuinely useful signals, and which is just time-wasting noise. Today, I’d like to share my organized thoughts on reading the market to help you avoid some detours.

The correct order for reading the market is actually the reverse: first look at the news for the bigger picture, then observe the funds to discern bullish or bearish attitudes, next identify the main players' actions to confirm direction, and finally validate it by opening the candlestick chart. If the order is reversed, it’s easy to be led by the emotional ups and downs brought on by a few red and green bars.

First, let’s discuss the step of looking at the news, but not every piece of news needs to be taken to heart. Many headlines are designed to scare beginners; upon hearing news, they feel the market is about to turn upside down when it actually has little impact. News can be broadly divided into three categories, differing vastly in their significance. The first type is “stale news”; by the time you see good news, the price has already risen, and jumping in at that point is basically just taking over the position. The second type is “expected news”, such as CPI data or Federal Reserve meetings; the main players have already positioned themselves weeks in advance, and when the news is finally announced, it often marks a turning point, making it easy to get trapped if you chase in. The third type, which I pay the most attention to, are “trend news”, such as ETF fund flows, changes in regulatory policies, and large institutional increases; these can fundamentally change the market direction and impact trends for weeks or even months.

Take the recent market as an example; market sentiment was particularly low, and many people were saying Bitcoin would continue to decline. But when I opened AiCoin and reviewed two sets of data, I gained clarity. The first set was on-chain data; over the past two weeks, on-chain whales had cumulatively acquired about 270,000 BTC.

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This indicates that the large funds were not leaving due to market panic; rather, they were quietly accumulating during a bad mood. The second set was the net inflow data for ETFs, which had begun to show a significant rebound.

When on-chain whales are quietly buying and institutional ETFs are simultaneously showing net inflows, when the two smartest types of money are doing the same thing, the weight of that signal is heavy. The market certainly does not have 100% certainty, but once you understand the attitude of the funds, even if the price fluctuates in the short term, you can have a firm grounding, and won’t be swayed by the market's volatility. Tools can help you quickly organize information, making it possible to grasp in ten minutes things that would normally take half an hour. For those who frequently monitor the market, the saved time is real money.

After looking at the funds, you should check if the volume aligns with the price. If the main funds keep buying but the price doesn't budge, it’s likely they are secretly suppressing prices to accumulate; if funds are continuously inflowing while the price rises with volume, it shows that the market has reached a consensus, which is the opportunity worth following. It’s kind of funny; when I was younger, I loved to trade based on intuition, adhering to “intuition above all”, until the market taught me that the rooftop winds are too cold, and slowly, I learned to be wise. Ultimately, it comes down to clarifying through data: are the main players accumulating or withdrawing?

The news provides the larger context, the funds indicate the stance, and large orders confirm the actions. At this point, when you finally look at the candlestick chart, you won’t be led around by each candle. You are approaching it with questions: is this a real breakout? Is there volume support? Does the signal really hold? Looking at the market this way naturally raises efficiency.

In fact, many people lose money not due to lack of skill, but because they are too anxious. Afraid of missing out or being left behind, they can’t resist making trades when they have some money, leading to frequent entries and exits, and slowly dissolving their principal in fees and slippage. My principle now is very simple: don’t trade in markets you don’t understand, don’t touch opportunities you can’t pinpoint. I used to think that being in cash was a waste of opportunity; now I understand that holding cash is also a type of position. Those who can survive in the market for a long time might only execute a few trades a month, not out of laziness, but knowing that money doesn’t need to be made every day. Protecting the principal and waiting for those few highly certain market opportunities to make a move is the essence of long-term survival.

Some people might ask: isn’t keeping funds when you have no assurance a waste? Not really. If the market is fluctuating and there are no good opportunities, I generally place the money in a savings account or low-risk wealth management products.

This doesn’t mean I’m expecting to make a lot of money from these small returns; the main goal is to keep the funds liquid, safely waiting for when the real big opportunity appears, so I can quickly withdraw and enter the market. It’s definitely better than holding money and being tempted to trade recklessly, losing half-heartedly along the way. Of course, wealth management products also have their own rules and return fluctuations, so everyone still needs to choose based on their own situation.

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Lastly, I’ll leave you with a thought that has resonated with me deeply over the years: those who can truly make money in the market are never those who stare at the market every day, but those who know what they should be looking at.

In the future, when you open market software every day, try changing the order: first look at what really important news there is today, then see if funds are flowing in or out, next check if the main players have left any footprints of action, and finally return to the candlestick chart to see what signals have been validated by the market. Gradually, you will find that the market, which used to seem chaotic and bewildering, will become clearer bit by bit. If I can help everyone avoid chasing highs and cutting losses, these shares will be worth it. Those interested can also join our community to communicate insights together.

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