if you treat it as a gambling, then it is a gambling game. gambing is for entaintainment, not for bussiness.
I treat every trade as a business sale or bidding a project. I agree technical does help, but do not overuse it, it is an assistance tool, think or bleive it is an edge, truely it is not. just like a doctor, he uses X-ray to detect tumor or other disease, also he need blood-sample or other sypotoms to confirm his diagnosis, if a doctor sees a spot on x-ray image, he concluded that person got cancer tumor, do you think it is riduculous or just a laugh!
yesterday I shorted STEC at 31.8, and bought it back at 29.53, I toke the trade. the reason is I first read the news , I suspect it will dop more, then I monitor it technically to confirm suspect, it does, I went with it. almost risk free.pocked 2.0k+
as for AIG, there is a wall street saying "buy on the rumor", the rumor is there, then watch it technically, take action when it is confirmed. I did pretty well, sold it at 28, plus another wesnday's trade, pocketed almost 14K. almost risk free too.
most people are misleading by technical anaylsis. Jessie livemore once told a story, in his book, a tipman told a professiona trader"some big man are buying some stock", the trader did not buy it right on the tip, he sold short it first, tat shocked the tipman, then exam the selling report, after he confirmed technically, he reversed and went long. that is his edge.
Quote from NoDoji:
Every trade is a gamble. Some trades are like betting red or black on the Roulette wheel; others are like covering half the board with your bets.
Technical analysis increases your odds and, in fact, is a footprint of how the majority of the crowd perceives the fundamentals. Day traders don't move price in a big way; large institutional investors do. These movers and shakers use a combination of fundamental analysis, news, and technical analysis to determine a fair price at which to buy a stock, and when to bail out, as well as a fair price at which to short stock, and when to cover.
You can see technical patterns set up price moves 80% of the time or more. If you wait for the best confirmed setup, you can pick winning trades often.
If you're day trading or short term swing trading, the technicals are a fantastic guide. I recently tested 3 swing trade portfolios, all of which returned decent profits in 1-5 days. My choices were purely technical. In fact, my 7/24 portfolio survived with a current $2100 gain despite 4 of the 6 companies reporting earnings since its inception. That demonstrates the power of technical analysis IMHO.
I've spent a lot of time in Robert's chat room and I think most of the traders there would confirm that even though I only trade a tiny % of the setups I call, my calls are pretty spot on, and they are strictly based on T/A.
