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How traders analyse the markets (5 mins)

Phillip Konchar

Welcome, let’s show you how traders find opportunities in the markets:

 

How traders analyse the markets

Traders analyse a market to determine when and how to trade it, if a trader does not analyse and relies only on luck it is like blindly throwing darts at a dartboard – any success they might have is just random.

 All profitable traders need an edge , if they don’t they will likely lose money over the long term. Good analysis is what gives a trader their edge, there are two main types of analysis: Technical and Fundamental.

Which type to use?

Some traders just use technical analysis, some traders just fundamental – both groups think the other group is misguided!

We don’t sit in either of these extreme groups, the approach to trading we are teaching you places technical analysis at the forefront and we seek to supplement it with good fundamental analysis.

Key Learning Points
  • To be profitable over the long term a trader needs an edge.
  • Traders create their edge through good analysis.
  • There are two types of analysis in trading: technical and fundamental.
  • In the approach we are teaching you technical analysis takes a lead role and it is supplemented by fundamental analysis.

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