Why Trading Setups Alone Won’t Make You a Pro

One of the reasons trading is hard to teach is that I can’t just hand you a setup and expect you to succeed forever. Trading isn’t just about setups; it’s about context—knowing when to use those setups.

A setup, like entering a trade at a double bottom, is mechanically simple. But the real challenge is knowing when to use it. Newer traders often think that once they have a setup, they’re ready to trade. But what they really need is an understanding of the bigger picture.

In trading, price only moves up or down. There’s resistance at the top and support at the bottom. If the overall trend is up, you can expect support to hold. If price is bouncing off support and breaking a trend line in the direction you anticipate, that’s when you enter a trade. You don’t need a bunch of indicators to tell you what’s happening. Take a look at any daily bar—it’s either mostly red or mostly green, meaning price primarily moved in one direction, even if it bounced around a bit first.

Trading doesn’t have to be complicated. If you know where price is likely going, don’t hesitate—join in.