Understand the Basics

We all take the basics of trading very lightly and we want to directly start focusing on patterns and Fibonacci and advanced patterns etc...

But we forget the fact that the market moves, only because of demand and supply. If demand is bigger than supply, prices go up and vice versa.

The market keep moving because of supply and demand. When the demand becomes stronger than the supply, we find support in the market (i.e. support line on the charts). and when the supply becomes stronger than the demand, we find resistance in the market (i.e. resistance line on the charts).

Now, this is very important, Support and Resistance lines should be broken or else the market will not go anywhere.

In general, we focus on strong support and resistance levels in the market, to expect strong rallies or retracements.

Our job is not to define or try to change the market, the market will not move the way we decide.

Our few lots will not make the market even blink 1 pip. What we need to understand, is that there are market movers, such as governments, banks and big financial companies. If we trade with few thousands of dollars, these guys trade with billions. 

Let us assume that the market is a jungle, with no rules and very chaotic atmosphere. and you are in the middle of this jungle. If you see a pack of Bulls running in a certain directions, you would want to run with them and not confront them. Same as if you see a pack of Bears running in a certain direction, you better ride with them and not face them.

In the market, Bears are the Sellers and Bulls are the Buyers. You better not confront them, but ride with the most powerful in that particular period of time.

You might have heard the term "the trend is your friend", this is very true. Bulls and Bears define the trend, and as a beginner, you better start trading only with the trend.