The Key to Trading Success: Focus on the Fundamentals

If you are new to the world of trading, you will probably feel overwhelmed by the multitude of strategies, indicators, and candlestick patterns. Through years of experience, I realized that memorizing complex candle patterns does not bring sustainable success. Instead, mastering the fundamentals will help you develop an effective trading strategy. Here are the lessons that I look forward to sharing with you.

1. Market Trends – A Valuable Companion The market always moves according to trends: up, down, and sideways. Knowing how to identify trends early will not only help you "go with the flow" but also avoid unnecessary risks. How to identify: Use tools such as moving averages, trend lines, or technical indicators to identify market trends. Benefits: When trading with the trend, you have the ability to take advantage of sharp rallies or dips, which helps to optimize profits.
2. Support and Demand Areas – Valuable Landmarks Instead of taking the time to memorize candlestick patterns, focus on identifying support and demand zones. Support zone: It is the price at which buying is often superior, making it difficult for the price to continue falling. Demand zones: On the contrary, it is the price at which the selling increases sharply, making it difficult for the price to continue to rise. Application: Correctly identifying these zones helps you set a reasonable stop loss and optimize the risk/reward ratio in each trade.
3. Risk management – a factor that cannot be ignored No matter how good you analyze the market, there are always uncertainties in the market. The Golden Rule: Determine the maximum level of risk you can accept for each trade. Strategy: Use stop-loss (stop-loss) and set a clear profit target. Benefits: Proper risk management protects your capital and helps maintain a stable trading sentiment.
4. Trading Psychology – A Determinant of Success The market requires not only technical knowledge and skills, but also emotional control. Common emotions: Fear, greed, and impatience can lead you to make the wrong decisions. Solution: Make a clear trading plan and stick to it. Don't let your emotions dominate your decision. The result: A stable trading mentality helps you stay disciplined and avoid bad mistakes.
5. Candlestick Patterns – Secondary Instruments, Not Focal Points While candlestick patterns such as "wrap candles" or "pin bar candles" can provide signals about market sentiment, they should only be seen as support tools. Order of learning: Let candlestick patterns become secondary knowledge once you have mastered the trend, support/demand zones, and risk management. Approach: Learn to read charts based on price action and combine them with other technical factors for an overall view. Conclusion: Successful Trading Journey Don't let yourself get caught up in a maze of complex indicators and candlestick patterns. Let's start with the basics: Start Simple: Focus on price action, market trends, and support zones, demand zones. No Complexity: Avoid overuse of unnecessary indicators and information. Always learning: The market is always changing, and you need to constantly improve your knowledge. Seek support: Join communities, find experienced mentors to avoid the mistakes I've made.

Remember, the trading journey is not always easy, but with the right knowledge and patience, you can achieve sustainable success. Let the fundamentals guide you on the trading path.