Quote from retaildaytrader:
...I believe moving averages and some simple analysis works to an extent, but the chart above I dont think anyone can make money from it.
I never see any of the most successful traders bringing out charts to justify their trades. I do believe they look at charts, but dont think they have something like the chart displayed above.
You continue stating that using a chart works or using moving averages works.
However, if that's true...why do you keep saying TA doesn't work.
It's very simple.
If you're looking at a
chart to help you make trade decisions, even if the chart only has price and nothing else...
You're using technical analysis.
In addition, you're making an error like TraderZones does in assuming that profitable traders are
only using TA. However, that's not your fault nor his fault because too many profitable traders give the facade that the only thing they're using is TA when in fact that's not true.
Another way to look at it, I've never met a profitable trader that
only uses TA and nothing else via the fact that most profitable traders I personally know that includes retail traders, institutional traders, floor traders and prop traders...
Those that use TA profitably...TA is just one piece of the puzzle that they have amongst other pieces of the puzzle that are in their correct position...working together. Simply, these guys/gals have other things on their side that most traders don't talk about for whatever reason (it's boring):
* Market Experience
* Money Management
* Discipline
* Team Collaboration (they aren't doing this alone)
* Access to resources that most don't have
* Properly Capitalize
* Other stuff
My point is that, these guys/gals that have all the above...they sometimes argue that TA works without mentioning (intentionally or accidentally) any of the above and that in itself gives the impression that it's the only thing they use which is false.
Here's a commercial analogy. Tiger Woods is on TV (commercial) hitting some golf ball some obscene distance with so new expensive golf club.
Yeah...sure the commercial is trying to state that it's the golf club that hit the ball that far and you can do the same if you buy their expensive golf club but we all know Tiger Woods has a lot more going on to produce his success than just some expensive golf club.
Therefore, do you get upset about those types of TV commericals? If not, why do you or TraderZones get upset about someone giving the false impression it's only the TA? :eek:
Something else, now that I've drawn the dots to marketing and advertising. All the data vendors (e.g. esignal, qcharts, barchart et cetera) need to promote TA especially via those webinars, guest speakers, free classes et cetera because it's one of the best marketing tools to get traders to use their charts. They are the biggest promoters of technical analysis and traders doing the same themselves are not worst.
Once again, I've never met a profitable trader that
only uses TA and nothing else nor will I ever believe if I go buy that expensive golf club I can play like Tiger Woods.
Mark
