This is my first of several of posts where I'll offer practical trading advice.
Let me start by dispelling the myth surrounding the importance of technical analysis.
Technical analysis and fundamental analysis cannot peacefully co-exist. Technical analysis is a fraudulent invention - a product of self-titillation amongst maths nerds and computer boffins who jump at any chance to throw lines, averages and ludicrous geometric shapes into the equation. Technical analysis is a bastardization of vanilla trading. Do you think the likes of Warren Buffett and George Soros had access to these gimmicks when they built up their respective fortunes?
Technical analysis is like a tamagotchi. It successfully convinces morons that it's the real deal, and that you're looking out for the real thing (whether it's your cyber pet or the price).
Well, we all know what happened to your tamagotchi - it died abruptly so you went out and bought a new one. This is exactly what technical analysis does. Fibonacci doesn't work? Buy some Bollinger Bands. Fed up of fractals? Slap on a MACD indicator.
Technical analysis is an ephemeral craze that will pass just as quickly as tamagotchis. Don't be roped in. One of the cardinal sins of trading is overloading your chart. I'm a naturist - I like my chart to roam free, and not be tainted by indicators and moving averages.
As I mentioned in my last post, successful trading is about feeling and channeling positive thoughts and energy. To do this is, you have to be at one with the world, and this precisely why fundamental analysis is important. In order to trade commodities, you have to lather your naked body in every last drop of oil. Not literally of course, but metaphorically.
Fundamental analysis will play a key part in my bi-weekly trading advice bulletin, where TheCentralFranc will make bold market predictions.
TheCentralFranc
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