Why Good Trading Is Like a Three-Legged Stool

It may seem like I only ever look at price charts. [Jeff Clark's Market Minute]( Why Good Trading Is Like a Three-Legged Stool By Imre Gams, analyst, Market Minute It may seem like I only ever look at price charts. And that I’m strictly a technical trader. But I use fundamental analysis too. In fact, fundamental analysis has helped me become the successful trader I am today. And it can help you too… if you follow this simple process. Let me explain… Recommended Link [Forget Tesla. This is bigger]( [image]( It’s bigger than Tesla…And bigger than SpaceX. Financial pioneer Teeka Tiwari believes this AI technology will trigger the biggest boom in history… Giving you, the early investor, a chance to completely transform your financial future. [Watch his shocking new video here.]( -- Like most traders, I started my career with fundamental analysis. Because on the surface, it makes sense. After all, there should be a clear link between a market’s fundamentals and its price. But what appears to be logical, isn’t always true. You see, if markets consistently followed the fundamentals, there’d be a lot more successful traders and investors out there. While fundamentals play an important role in my trading, it’s not what you think… The Only Way to Trade Markets There a few key principles to follow if you want to be a successful trader. First, understand the distinction between fundamental and technical analysis. Fundamental analysis will tell you where to look, whereas technical analysis will tell you what to do. Both methods are complementary to one another. For example, you may want to trade the currency markets, because there’s always something going on. That’s why I love trading currencies. Over the years, I’ve gained expertise on broad macroeconomic themes like central bank policies, trade relations, and fiscal policy. But, you don’t have to be an expert on Norway’s government spending platforms, or New Zealand’s agricultural exports to profit off a move from the Norwegian krone or New Zealand dollar. All you need to know is whether a big move is on the horizon. If it is, fundamental analysis can help you know where to get into the market and where to get out. For instance, if the Reserve Bank of New Zealand (New Zealand’s version of the Fed) has a policy statement coming up, you should know it’s likely a market-moving event. But knowing whether the central bank will raise rates, lower rates, or keep them the same won’t help you make money. To make money, you need to know what time the policy statement is scheduled for release. This is how fundamental analysis can tell you where to look. Knowing this, you can then start to work on what to do about it. That’s where technical analysis comes in. It shows whether you can expect a higher or lower currency move in the aftermath of the news event. You can analyze the price chart to know where to buy or sell, at which level to set a protective stop loss order, and where to reasonably expect to exit for a nice profit. So, technical analysis tells me what to do. Finding Your Own Way to Profitability Think of good trading as a three-legged stool… Fundamental analysis, technical analysis, and the final part, which we haven’t mentioned yet — strong risk management (we’ll discuss risk management in more detail in another essay). These are the three legs. If you take any one of those legs away, the stool will fall over. How you use each of those legs is up to you. The way you do it will be different from me… and from most other traders. 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. See, no two traders are perfectly alike. Jeff Clark trades a little differently from me, and I trade differently from Jeff. What’s important is to be well-rounded, so you can find your way to profitably trade regardless of what the markets are doing. Before you place your next trade, think to yourself: Are you using the “three-legged stool” approach? If not, consider how it could help you increase your profits, reduce your losses, and make trading less stressful overall, thanks to sound risk management. With the markets moving around as they are right now, this message is more important than ever. Happy trading, [Signature] Imre Gams Analyst, Market Minute READER MAILBAG How do you use fundamental and technical analysis in your own trading? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [U.S. Banking and ‘Dark Dollar Reset’ Underway]( The signs are clear… Our financial system, as you know it, is being turned inside out. At least 722 U.S. banks could be on the verge of bankruptcy. And nearly every asset class is set to be impacted – Real estate, stocks, bonds… Even BlackRock, with $8.59 trillion in assets under management, has now gone on record to say we’re on the brink of an “ultra-rare recession.” But one financial expert is stepping forward with the whole truth. Dr. Nomi Prins has agreed to an exclusive interview where she makes a huge and controversial prediction about the U.S. financial markets in 2024. According to Dr. Prins, we’re about to see a different (and unique) kind of crisis. One that has played out only 3 times before in American history: “We’ve hit a ‘breaking point’ before in 1933, 1989, and 2008.” Now, she says, history is about to repeat itself – And the aftermath could be chaos (especially for Americans who don’t act now). As Dr. Prins says, the window to act is closing rather quickly. So she’s allowing us to share her important warning – with a wider audience – for a brief time only. [Click here to watch Dr. Prins’ newest prediction.]( [image]( [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). © 2023 Omnia Research, LLC. All rights reserved. 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