Mastering the Basics

Successful traders focus on doing the basics well and repeating the process over and over again which provides them with an edge. Amateur traders focus on looking for the next great indicator or the next Holy Grail trading strategy. Which camp would you put yourself in?

Firstly let’s start out by defining a couple of the trading basics which you must master. You won’t be surprised to hear it but TREND is the number one technical analysis ingredient which you need to focus on. Second to that would be SUPPORT & RESISTANCE levels. Many traders make the mistake of thinking that they need to know all of the advanced technical analysis concepts; however they only end up going round and round the merry-go-round trying new advanced concepts, all the while becoming more and more confused – as if trading wasn’t hard enough!

If you’re in that boat, strip everything back, refresh your mind and solely focus on mastering trend and support and resistance levels. Some of you may say "I already know these concepts really well, they’re so basic". To that we say, if you’re not already a consistently profitable trader then you probably haven’t mastered these concepts well enough yet.

This weekend is the quarterfinals weekend for the Rugby World Cup. The All Blacks face off against France on Saturday night in Cardiff. What makes the All Blacks such a formidable team, is not down to the offloads and round the back passes, instead it comes down to each and every player nailing their basic skill sets. Basics such as looking after the ball in hand, low penalty counts and strong defence will be a big focus going into the quarterfinal. All of the fancy stuff that might happen on the field comes secondary. If they were to go into the game focusing on fancy moves instead of the core basic skills then they would get beaten by France.

The same goes for professional traders, they focus on the core basic skill sets which provide them with an edge in the market. So if you’re one of those traders out there trying to learn all the advanced stuff and are getting nowhere, then take a big step back and focus on the absolute basics. If you want to start learning more about the basic concepts such as support and resistance and trends then pop over to our free webinars page and either sign up to the upcoming webinars or view the recorded versions.

Happy Trading!

The TWP Team