New study says: Technical Analysis is garbage
- Thread starter Daal
- Start date
WHAT DO YOU CALL IT THEN???
All you bozos do is say I'm wrong but then provide no "term" to describe mkt analysis that is NOT Fundamental.
All you bozos do is say I'm wrong but then provide no "term" to describe mkt analysis that is NOT Fundamental.
Again, WHAT is the analysis called?? We are working with either TECHNICAL or FUNDAMENTAL analysis. This is my ENTIRE premise. Its either your trades are based on looking at company financials looking for intrinsic value OR you are looking at the mkt or stock or whatever you are trading and trying to gauge a worthwhile trade based on any number of variables NOT involving company or mkt financials OR you are using both.
"The biggest part of fundamental analysis involves delving into the financial statements. Also known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities and all the other financial aspects of a company. Fundamental analysts look at this information to gain insight on a company's future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, cash flow statement and how they all fit together. "
http://www.investopedia.com/university/fundamentalanalysis/
Did you even know what quantitative analysis was with regards to mkt or security analysis when you typed your smart ass response to me?
http://www.investopedia.com/university/fundamentalanalysis/
Did you even know what quantitative analysis was with regards to mkt or security analysis when you typed your smart ass response to me?
ET = GIGO
Mr. R.,
You are fighting against phantoms.
I have been watching the crowd, wondering when you will realize that your over-zealous peers in this thread are LOSERS.
Have you ever had enough money to stop thinking about making it? Have you known people in that condition? Those people do not spend their time in adolescent attempts to bring down someone else. They are out enjoying life. Think about it. If money was no object, why would anyone play teenager and waste their hours here in anonymous attacks, no better than role-playing games, when they could be out using their toys and enjoying friends with the same lifestyle?
They are losers. Losers are wastes of time, and are suitable for the pit known as "ignore." Stop dancing with them.
And yes, to these losers, I stand in your face, bad breath and all, and dare you to show your audited statements, to prove you are self-made, independently wealthy, and the exception to the rule... that you can be wealthy and waste your time, like a coward, on ET, contributing to a problem but never to any solution. Show us all that you have made it, and have earned your spot from which to look down on other traders.
Make our day, or shut the fuck up.
The chronology of various types of analysis is fairly well articulated in Krugman's recent paper (06SEP09).
You may want to address behavioral analysis and the types of analysis that orient to information theory.
In both TA and FA that you do mention there are various maths involved. Once you reach an understandoing that FA has a lot od math overlap with TA you may soften your views to take advantage of several more classes of consideration.
The OP's reference to Marshall, Cahan and Cahan cerainly missed the boat in many ways.
One career in particular shows how a person can bounce around a lot in trying to figure out how markets work; see Lo of MIT.
Most of FA and TA is done through weaker approaches that center on induction. In my opinion, the most fruitful results come from using science and its deductive approaches.
In doing analysis beginning with a hypothesis set and its parametric measure, it is like moving from logic to math tools that measure informatively. Since much of market activity is a result of human activity, there is a lot to be learned from the social sciences.
The pragmatic and most productive timing decisions do come from drilling down technically to carve turns and be able to operate at several times the market's capacity.
The Efficient Market Hypothesis has not allowed its servants to deal with taking the market's offer as we see by stats over all the differing market conditions.
Most of the time, the market is offering. Dividing the offer into profit taking segments is largely mechanical but it is necessary to understand how the operating point of the market changes. This is not so technical as it is logical.
Often drilling down to exact the timing is more a matter of the order of events. Calling consideration of the order of events could be deemed as logical and behaviioral rather than technical. On the other hand few things are exclusive. Often it is better to view the complexity as a Venn universe or links and nodes in a network. Applying Alexander's Method to a heirarchy of links and nodes, often reveals the concentrations of financial (fundamental), behavioral and technical facets. Then with that understanding a person can set up visual displays that relate to each and also show the interrelationships as expressed through the order of events that form the operating cycles of markets.
Trading is anything but action and reaction as espoused by OODA or the related psychology of markets.
OODA espouses continual hypothesis testing and measuring results as if a battle is going on. An effective alternative is continually examining the behavior of "smart money" relative to the market operating point. This to me is more behavioral than technical. Fortunately it is also a leading indicator of the price I trade in a de facto manner.
Oh man...does that mean anyone reading this forum is a loser?