Freddy will attack you while you are dealing with Bonnie or Foxy. You can have the light on while dealing with Freddy. Do not confuse the wail with another sound of his, which he moves from peering to looking in your room. You must hold the curtains shut till you hear a faded robotic wail, in which you can then open the curtains. He will start off by peering in from the side, then moving closer and looking directly inside. While the light is off, you still slowly lose sanity. To reduce the loss of Sanity, you must turn on the light behind you. After that, any jumpscare, including Chica's one, means death death.
It goes from Green to Yellow, to Orange, to Red. You can tell what your sanity is by looking at the light on the wall in front of you, left of the main door.
Sleeping also quickly drains your sanity. In general: Looking at an Animatronic will drain your sanity.