I have been trading for around nine years now, and I was wondering what the most important thing is that will make us profitable really quickly.
And I came to this conclusion.
You see, when I was a beginner trader, this is how I used to take a trade.
I used to open the chart.
Then I used to look at the indicator.
Then, within a few minutes of opening the chart, I used to take my trade.
And within the next few minutes, I used to lose my hard-earned money.
This was a horrible way to trade, and I have blown up many accounts because of this.
If you have not noticed any problem with these steps of taking a trade, let me ask you a question.
When you took your last trade, what was the reason behind it?
Did you look at the indicator, a price action pattern, support and resistance, or something else?
Maybe the price was trending, so you took a trend trade.
But tell me, did you even try to find the reason why the price was trending?
Well, beginner me, around nine years ago, didn’t care about the reason.
He directly looked at the indicator within a few minutes of opening the chart and then took a trade and lost money like it was a speedrun.
I don’t think it’s even possible to make money consistently in the long run by trading like this.
Nowadays, my trading steps look something like this.
First, I open the chart.
Then, the main thing I do that greatly impacts whether I am going to make money or not is finding the reason behind the move I am seeing on the chart.
So, when I see a trend trade or whatever the price is doing, I try to find the fundamental reason behind that move, like why the price is behaving that way.
Many times, it’s a news event, like some economic data or something that has happened in the real world that is actually moving the price.
The price is not moving because the indicator gave a crossover or something.
I mean, if there is a support and resistance level or some strong technical price level, then yes, that technical structure can move the price.

But most of the time, the price is reacting to something fundamental, not the indicator.
Finding the reason behind the trend first, instead of directly looking at the indicator, has been a game changer in my trading journey.
It’s like the quality of my trades has gone up significantly.
Once I have found the reason behind the price movement, I try to identify whether the market is good or bad for my strategy.
For example, if I am taking trend trades, I don’t want the price to be slowing down or losing momentum.
And then I use the indicators.
This is where I take the technical entries.
In steps three and four, I also use technical indicators, like a moving average, to make sure they also say the price is trending.
And then I take the trade.
And most of the time, the trade has a much higher chance of making money than the strategy I was using when I was a beginner trader.
So, the number one thing, or at least one of the main things that will make you a profitable trader really quickly, is focusing on why the price is moving the way it is moving before taking any trade or doing any other analysis.
Indicators and other technical analysis are used to make sure we take trades consistently instead of trading with emotion or randomness.
In action, the steps can look something like this.
You open the chart, and the price movement looks something like this.
First, there was a slow movement, but then the price started to move strongly in an upward direction.
You have spotted an uptrend.
Instead of immediately buying in this uptrend, try to find why the price is suddenly moving in an upward direction.
Like, try to find what happened before the strong momentum appeared.
Many times, the reason for the sudden upward move will be some economic data release, earnings, or something similar.
And many times, the news event will not be strong enough to continuously move the price in an upward direction.
Many times, the price will slow down or reverse.

So, if you spotted an uptrend and didn’t find the reason behind the upward push, you might take trades and then end up losing money.
But when you start finding the reason behind the moves, many times you will find major news events that will create big moves in the market, like long-term moves.
One example of a long-term news event was the interest rate news during the 2022 market crash.
You see, when a stock market index such as the Nasdaq 100 was falling because of negative news events such as higher interest rates and higher inflation, I was tracking all of them.
And when the news events started to get positive, I started to buy more.
I was even taking leveraged positions.
And when the price started to move in an upward direction, I didn’t say it was because of an uptrend, an indicator, or something else.
I knew the fundamental reasons behind the change in direction.
And once I knew the fundamental reason was shifting towards an upward move, I started using technical tools like support and resistance to take a better entry, especially in some other trades I took during this time.
So, instead of opening the chart, looking at indicators, taking a trade, and then losing money, nowadays, I open the chart, find the reason behind the movement first, then I identify the bad market.
So, I don’t end up taking a trade in a bad market.
Then I look at the indicator to get consistent entry points instead of trading with emotion or randomness.
And then I take the trade and make money.
So, focus on finding the reason behind the moves if you want to become a profitable trader really quickly.