Markets Are Perfectly Irrational

Very few traders start their careers using technical analysis. [Jeff Clark's Market Minute]( Markets Are Perfectly Irrational By Imre Gams, analyst, Market Minute Very few traders start their careers using technical analysis. I was no exception. You see, when I first decided to become a professional trader, I focused on fundamentals like logic and facts. And my first fundamental trading strategy was quite straightforward – find companies whose share price was trading below their fair market value and buy them. Sometimes this strategy worked. But most of the time, the hyped-up companies trading at crazy valuations continued to outperform… while the value stocks I picked did nothing. Recommended Link [Elon’s Most Daring Project: “Apollo”]( [image]( According to Elon Musk… [“[Project Apollo] has the fastest rate of innovation]( maybe ever for any internet company.” Faster than Facebook, Google and Amazon… Stocks that gave early investors a chance to turn $5,000 into $130,000, $305,000 and more than $2.1 million over the years. [Click here to see the details.]( -- Markets Are Irrational I couldn’t believe that all my careful research wasn’t playing out the way I thought it should. I quickly became obsessed with figuring out why investors would pile into some stocks, while completely disregarding others. Eventually, I reached a conclusion that would change the way I trade… I realized markets are perfectly irrational. What truly drives markets are emotions… optimism and pessimism. Sometimes, those extremes in optimism and pessimism coincide with mainstream economics. But often, market movements don’t align with conventional logic. That’s when you’ll hear analysts say the move was “already priced in.” But that explanation wasn’t good for enough for me. I wanted to know if there was a way to predict what a market will do before the news came out. And that’s exactly where technical analysis comes in… Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Using Technical Analysis to Spot Profitable Opportunities As a technical analyst, I believe human behavior plays out in predictable patterns. I look for these patterns on a price chart to track the market’s price action. Now, my career is full of market calls that seemingly fly in the face of conventional logic. And many of my colleagues have also made millions of dollars taking contrarian stances on the markets. Of course, not every forecast will work out this way. I get some market calls wrong, too. But technical analysis is a superior discipline to fundamental analysis. It allows me to define my risk on a trade in a way that fundamentals just can’t. On every trade I take, I also have a set stop loss, which is determined by identifying key levels on a price chart. When I get stopped out of a trade, I consider myself very fortunate because I know that I got out at the right time. There’s no sense hanging on to a losing position… I’m simply out and free to focus on the next opportunity. If my technical analysis gets me stopped out, then I’m out of the trade for a controlled and pre-determined dollar amount. That’s the power of technical analysis. It allows you to identify great trading opportunities as well as pinpoint entry and exit levels. Happy trading, [Signature] Imre Gams Analyst, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](