The wild weather here in Texas hasn’t let up. We’ve still been getting hit with rain and crazy high winds.
Finally, we had a clear, sunny day. But it came with a surprise.
My husband and I walked outside and saw that a tree just beyond our backyard had fallen over. Thankfully, it collapsed away from our fence, not into it. But when we looked at it closer, the story it told hit me hard.
This tree wasn’t healthy. It hadn’t been for a while.
No leaves. No growth. Just a gray, hollow-looking trunk that had been standing still like a fossil.
It probably should’ve been pulled out weeks ago by the property maintenance team. But it stood there until the heavy winds made the final call.
And the reason it couldn’t withstand the pressure?
It didn’t have strong roots anymore.
It hadn’t been absorbing the water or sunlight. It wasn’t growing or producing leaves.
So when a strong force came? It toppled.
Seeing that fallen tree reminded me that a strong foundation makes a huge difference – not only in nature but in our trading.
I’ve been talking a lot about trading plans lately — and your trading plan is part of your foundation. But it’s not the only thing.
Yesterday a group coaching session, a trader commented:
“Hima, when you look at a chart, you start with momentum, with the RSI Power Zones indicator, right?
Totally fair question. But my answer? Nope.
Sure, I study momentum. And I forecast.
But my technical chart analysis starts with price action.
That’s my foundation. Every time.
What’s your trading foundation?
Just like a healthy tree basks in sunlight and pulls up water through its living roots — your trading needs something solid at its base.
For me, price action is that root system.
If price action isn’t doing what I need it to do, then momentum and forecasting don’t call the shots on whether I make a trade.
I recommend all traders have one core element they begin with:
- It might be candlestick patterns
- It might be reversals or breakouts
- It might be multi-bar pattern recognition
But whatever it is — your trading foundation should start with one data element.
Everything else is built on top of that.
Don’t let your trading topple in a storm
If your trading isn’t grounded in strong data you know how to analyze and can rely on — it’ll feel shaky every time the market throws you a gust of wind.
So I’ll ask you this:
What’s the foundation of your trading approach?
Is it price action?
Momentum?
Forecasting?
Something else?
👇 Drop a comment and let me know. I’d love to hear it.
~Hima
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