perils of shortening your chain?

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Shut Up Legs

Down Under Member
I'm a newbie to derailleur adjustments, but doesn't having a shorter chain negatively affect shifting? I had a problem last year where I could adjust the front derailleur to shift nicely to the large ring but not the other way, or I could adjust it to shift nicely to the middle ring but then it wouldn't shift properly to the large. After I added a link to the chain, this problem disappeared. So what was I doing wrong?
 
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