One of the biggest mistakes traders make is entering positions without understanding market structure. Structure simply means identifying whether the market is making higher highs and higher lows (uptrend), lower highs and lower lows (downtrend), or moving sideways (range).
In an uptrend, the smart approach is to look for pullbacks into support zones instead of chasing breakouts randomly. In a downtrend, relief bounces into resistance often provide better opportunities than trying to catch bottoms.
Ranging markets require patience. Breakouts from ranges should be confirmed with volume and strong closes — otherwise, fake moves are common.
Before entering any trade, ask yourself:
What is the current trend?
Where is the nearest support and resistance?
Is volume confirming the move?
Trading is not about prediction — it is about probability and risk management. The more clarity you have about structure, the better your execution will be.
