#TradingMistakes101

Many new traders believe that the fundamentals are easy and impractical, and they try to jump straight into 'advanced' materials. This can be a grave mistake. Just as you cannot drive a Formula 1 car right after getting your learner's permit, or tackle trigonometry without mastering the basics of arithmetic, you will not become a successful trader until you understand the fundamentals of this business. The fundamentals are extremely important, and you must understand them well before attempting to engage in more complex trades. A good example of this is the basic concept of support/resistance, its relationship to price movement, and its implications for a trading position.