This is it: Understand what the market is doing
fundamentals.jpg
That’s right… That’s what I think is the single most important aspect to get consistent results, and let me tell you why with an analogy…
What happens you get a brand new TV?
You are all excited, open up the box and the first thing that you do is try to figure out how the TV works… you have a bunch of questions, a few read the instruction manual and some others (like me) just push the buttons until they figure out how it works…
While trying to figure out how it works, you are stressed, because the thing is not doing what you are asking for, so its not a very pleasant experience.
And finally, you figure it out and now you understand how the TV works. Only then you feel relaxed now and there is where you start enjoying it.
Well… the same thing happens with the market.
If you dont know how it works, you are going to feel stressed, if you trade based on black boxes or magical formulas, you are going to feel stressed, you are not going to enjoy your trading, and believe me, that’s kind of a big deal.
And now, lets take a look at the other side of the coin.
When you understand what the market is doing, you dont need the perfect entry system, because you know what the market is likely to do. So even if you take your trades a little late, the market still has good possibilities to move in your favor.
Also, since you understand what the market is doing and what it is likely to do, your emotions will not kick in (at least, not in the way they do when you have no clue about what the market is likely to do), so there is no need to worry about psychological factors.
Do you see why it is very important?
And the 2nd most important: Understand risk
This one would be my second option…
fundamentals.jpg
That’s right… That’s what I think is the single most important aspect to get consistent results, and let me tell you why with an analogy…
What happens you get a brand new TV?
You are all excited, open up the box and the first thing that you do is try to figure out how the TV works… you have a bunch of questions, a few read the instruction manual and some others (like me) just push the buttons until they figure out how it works…
While trying to figure out how it works, you are stressed, because the thing is not doing what you are asking for, so its not a very pleasant experience.
And finally, you figure it out and now you understand how the TV works. Only then you feel relaxed now and there is where you start enjoying it.
Well… the same thing happens with the market.
If you dont know how it works, you are going to feel stressed, if you trade based on black boxes or magical formulas, you are going to feel stressed, you are not going to enjoy your trading, and believe me, that’s kind of a big deal.
And now, lets take a look at the other side of the coin.
When you understand what the market is doing, you dont need the perfect entry system, because you know what the market is likely to do. So even if you take your trades a little late, the market still has good possibilities to move in your favor.
Also, since you understand what the market is doing and what it is likely to do, your emotions will not kick in (at least, not in the way they do when you have no clue about what the market is likely to do), so there is no need to worry about psychological factors.
Do you see why it is very important?
And the 2nd most important: Understand risk
This one would be my second option…
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