Analyzing the quote “Frankly, I don’t see markets; I see risks, rewards, and money.” – Larry Hite
I like this quote.
Markets are more or less all the same. That is to say that they all obey the same rules, so they will produce the same charts. Obviously, we are talking about technical analysis here – and you can learn more about price action trading analyzethisfx.com.
So it does not matter if you trade stocks or indices or futures or currencies or whatever. Of course more liquid markets will produce smoother charts. For example: currency markets.
The next thing to spot will obviously be the pattern that gives you an edge over the standard 50/50 chance of winning/losing. This will tell you when and where there is an opportunity to profit.
Then you look at the risk because your first job is to protect your capital. Your first job is cover your back.
Then you calculate your potential profit. If the risk/reward ratio is worth it, you trade. If you’re good, you will profit. If you are not, you will not profit.