If it was $5,999 discounted to $2,900 today only I would have bought it. $997 is too cheap for the Discombobulator Trading System I have only dreamed of owning.
Prove to me that Technical Analysis Works.
- Thread starter TazTheLaz
- Start date
If it was $5,999 discounted to $2,900 today only I would have bought it. $997 is too cheap for the Discombobulator Trading System I have only dreamed of owning.
I see a lot of truth in this statement. How many times have I let a decent profit turn into a loss because I wanted it to get back to the max profit I once had in the trade. And, more so have I settled for a small profit and it when on a tear after I exited. I had good entries in both situations.
When I started getting involved in the US stockmarket 1998-1999 as a newbie investor, I had to spend a lot of monies on data, black box software, books, dvd, seminars. It is not an exaggeration to say, I probably, spent over $10,000 trying to learn about the stockmarket. Nowadays 2022, most of that information is free on the internet. You Tube has tons of content on every aspect of trading. Anyone today can learn to be a good trader because the resources are free now for everyone.
Go ask one of the ET trolls because they will tell you what really works in the stockmarket. Funny. If you know something does not work 100% why would you ask others to prove it works?
Hello wrbtrader,As stated a few times in this thread...profitable traders are not using 100% technical analysis...
They are also dependent upon risk management, position size management, psychology et cetera.
The guy you're talking about is using position size management in position reversals or re-entry into the opposite direction by doubling the trade size regardless if overall he's profitable in those types of trades.
On another note, I'll repeat the issue in this thread. The OP specifically asked for someone to Prove to me that Technical Analysis Works...he then begin to move the goalpost in his opening post by equating it to "super-rich" investors. His exact words in the thread title.
He even gives examples of those that are super-rich so that you know exactly what the bar is that he's looking for and that implies he also wants to see your broker statements, bank account statements, and probably some type of super-rich lifestyle verification along with the fact you'll be able to correlate it all to your use of technical analysis.
- Simply, not only do you need to prove that TA works...you need to be super-rich too from the TA.
Yet, some in this thread have shown up to pretend he asked to Verify You're A Profitable Trader and that's not what he's asking because the two requests involve completely different types of verification.
Thus, a breakeven TA method can become great (produce profits) if proper risk management is used, good position size management is used and the trader is good at applying his/her trade method...not sabotaging his trading.
- Simply, verifying that you're profitable does not verify that you're using technical analysis nor does it eliminate the importance of other edge's in your trade method such as risk management, position size management, psychology...
It explains why two different traders using the exact same TA method while trading the exact same trading instrument can have completely different trade results...one is profitable and the other is a loser.
That's another way of saying this is that it's not all about technical analysis. The real edge is the trader and TA is then just a tool for that trader as much as a hammer and nails is to a construction worker.
wrbtrader
What does good position size management means? I trader the lower minutes charts day trade.
Thank you
Haven't you noticed that the ones daring you to prove things in stock trading and the stockmarket are the ET trolls? If you believe in something, you should be the very first person to prove it. So, if you say, technical analysis does not work. Go ahead and prove it!
That is just silly to say, but I would like to see TA's account performance.
Who is this TA, how long has he been trading?
Chief, your question was equivalent to: Do supplements work? Some do, some don't, some work as placebo,(so not as intended) some would work but incorrectly used (not enough dosage). etc.etc.
TL;DR: Question is too generic.
You made good entry and bad exit you made smaller profit.
You make bad entry and good exit you incur smaller loss .
So is smaller profit better than smaller loss ?
If you can calculate you will get the conclusion that entry is more important than exit.
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https://www.investopedia.com/articles/trading/09/determine-position-size.asp
By the way, I strongly believe risk management and position size management go hand to hand as in they're dependent upon each other.
- Yet, bad risk management and bad position size management are encouraged by many brokers with those ridiculous low margin requirements or high leverage that wipe out traders because most traders don't understand that they shouldn't use margin requirements or leverage to determine their position size...then followed by market conditions impacting your position size.
In fact, if you've ever participated in any of the CME Group trading competitions...they require you watch an online class on topics like that and then you're require to answer some questions related to the video you've just watched...prior to someone being allowed to compete in their trading competitions...
At least they use to do such in their past trading competitions.
Let's put it this way, there's a huge problem when the typical retail trader, as an example, opens a $1200 trading account and then proceeds to trade with 2 Emini ES contracts just because the broker day margin requirement is $500 per contract.
Another strong belief is that one of the reasons why most traders fail at trading is because they abuse and misunderstand risk management / position size management because they're trying to make a ton of money in a very short time period and they're undercapitalized or trading with money they can not afford to lose.
It's one of the big reasons why I frown on a trade journal that doubles/triples their size after a losing trade or adds to a position without the trader discussing their account size, statistics of their trades when double/triple their position size in position reversals...
Those reading those types of trade journals are getting the wrong message about risk management / position size management.
- Then again, brokers don't care because they know that a trader with good risk management/position size management will trade a lot less than those that have poor risk management/position size management.
wrbtrader
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