Prudential shutters TA dept and......

[volkl151]

Quote from EPrado:

Exactly. Great post. You can study charts and know every technical analysis strategy in the universe, but trading them is a different game. I always wondered why people with tout services/letters didnt just trade since their calls were so good, and not sell such "valuable"info.

.

I agree that solid technical analysis alone does not make good traders, but I would like to address your question as to why traders would ever publish a newsletter. I publish a morning newsletter (free) for the FX firm i trade for. I love writing my morning strategy because it forces me to commit to my trade ideas on paper and formulate them in a presentable manner that k's read.

As I mentioned, I trade for the hedge fund here and since I began doing my morning thing, my trading has never been so good.


Just my input.

 

[EPrado]

Quote from hcour:

Exactly. Great post.

I think one of the first things one learns after studying TA for X amount of time and then actually starting to trade, is that TA is only part of the formula. It can be a rude awakening.

H

TA is a great tool. But like you said..is only part of the formula. The more weapons in your arsenal, the better trader you will be. If you have 4-5 tools and they all say go long, then go for it. I have had times where charts said one thing, but fundamentals said another, and i bypassed the trade.....and it saved my azz.

 

[Thunderdog]

Quote from mahras2:

I actually like the fact that people are moving away from TA. TA only works when others are NOT following TA. So let the other traders trade on funny mentals while I stick to my Technical analysis.

I don't think that this move necessarily signals a move away from TA. Equally possible, it could be the equivalent of shutting down the pencil sharpening department. If people can't sharpen their own pencils, then maybe thay should be doing something else. If traders cannot at least do their own TA, then maybe they should be doing something else, too.

 

[EPrado]

Quote from volkl151:

.

I agree that solid technical analysis alone does not make good traders, but I would like to address your question as to why traders would ever publish a newsletter. I publish a morning newsletter (free) for the FX firm i trade for. I love writing my morning strategy because it forces me to commit to my trade ideas on paper and formulate them in a presentable manner that k's read.

As I mentioned, I trade for the hedge fund here and since I began doing my morning thing, my trading has never been so good.


Just my input.

The difference is you publish it for free. You say that writing the letter forces you to commit...which is great. I think the way you "publish " a newsletter is excellent. But..you are sharing ideas with you comrades, not other outsiders. So if your "calls" are right, only you and your firm reap the benefits. Which makes total sense to me.

My problem is with people who have these chat rooms,publish newsletters, make market calls, but arent doing the trades themselves. If you arent going to put money behind your ideas, then what does that say? No confidence in your strategy. That or you just cant trade. If these people are going to charge for their calls, then they better have a very good performance. Some of the stuff I have seen out there is garbage.

I also trade for a hedge fund and while I love talking about the markets with other traders, never give out my ideas or how I got there to outsiders. I do my own homework and work too damn hard. Plus I dont wanna hear it from someone when a trade goes south.

 

[Thunderdog]

Quote from volkl151:

.

I agree that solid technical analysis alone does not make good traders, but I would like to address your question as to why traders would ever publish a newsletter. I publish a morning newsletter (free) for the FX firm i trade for. I love writing my morning strategy because it forces me to commit to my trade ideas on paper and formulate them in a presentable manner that k's read.

As I mentioned, I trade for the hedge fund here and since I began doing my morning thing, my trading has never been so good.


Just my input.

Well, it's comforting to know that your newsletter is helping you.

Kidding aside, if your letter touches on fundamentals and you are good at what you do, then your newsletter may have some value. However, if your newsletter is only TA, then you may well be doing a disservice to your subscribers. Different people trade differently. Applied TA is context-specific. People who cannot at least do their own TA should not be trading if their method has any basis in TA. Just my opinion.

 

[volkl151]

Quote from EPrado:

The difference is you publish it for free. You say that writing the letter forces you to commit...which is great. I think the way you "publish " a newsletter is excellent. But..you are sharing ideas with you comrades, not other outsiders. So if your "calls" are right, only you and your firm reap the benefits. Which makes total sense to me.

My problem is with people who have these chat rooms,publish newsletters, make market calls, but arent doing the trades themselves. If you arent going to put money behind your ideas, then what does that say? No confidence in your strategy. That or you just cant trade. If these people are going to charge for their calls, then they better have a very good performance. Some of the stuff I have seen out there is garbage.

I also trade for a hedge fund and while I love talking about the markets with other traders, never give out my ideas or how I got there to outsiders. I do my own homework and work too damn hard. Plus I dont wanna hear it from someone when a trade goes south.

Eprado actually no, it goes out to all of our retails traders, our fund clients, as well as my fellow traders. I'm thinking that if clients were charged for it, rather through volume or payment, that I would work that much harder on it. And I wonder if my trading would improve porportionally as more work went into the report. Ha!

I agree. I can't stand gurus who don't trade.

 

[hcour]

I actually like the fact that people are moving away from TA. TA only works when others are NOT following TA. So let the other traders trade on funny mentals while I stick to my Technical analysis.

Sorry, I don't mean to be argumentative. Ok, yes I do. We're on the same "side", but I consider myself a devout member of the "Church of Whatever Works - for You". Be it Fundamental Analysis, Technical Analysis, or FA & TA. There seem to be these consistent prejudices among a great majority of traders regarding one or the other. Just as w/in TA there are prejudices against different kinds of TA - Elliiot Wave seems especially disdained, especially on this site. This may or may not be for good reason, but I don't think there is conclusive evidence one way or the other. Certainly there must be traders who have learned to use it successfuly. Just as FA must work for others.

And, again apologies for disagreeing w/a fellow, but TA, pure TA, always works, always has, always will, always should. If one accepts as fact that a chart reveals the struggle, balances and imbalances, of supply and demand in an auction market, how could it be otherwise? The law of supply and demand is immutable. The quality of players and the quantity of quality players may change, but an auction market is always gonna be an auction market.

H

 

[mahras2]

Indeed I agree with you regarding the use of whatever works for the trader. I was making an observation where some of the old technical indications and patters might reappear again. I know that TA works because well I make all my money with it

 

[hcour]

I know that TA works because well I make all my money with it

'nuff said.

H

 

[EPrado]

Quote from volkl151:

Eprado actually no, it goes out to all of our retails traders, our fund clients, as well as my fellow traders. I'm thinking that if clients were charged for it, rather through volume or payment, that I would work that much harder on it. And I wonder if my trading would improve porportionally as more work went into the report. Ha!

I agree. I can't stand gurus who don't trade. [/QUOTE

]


I hear ya. I think its great if writing that letter is forcing you to commit to trading your ideas and improving your trading. I think sharing ideas with fellow traders at your firm and friends is great. I do share some of my ideas with other traders, but for the most part I do my own work and trade by it. I also am not a huge fan of asking for their market calls, because if I am gonna catch a bad trade , I want full responsibility.

One firm I traded at had a while table full of tout letters each morning. Some of the traders lived and died by their support/resistance levels and ideas. Well....what happens when those letters are no longer available or worse, the ideas go south. They are left out in the cold and most likely their trading accounts are screwed.

I guess I am juts a fan of doing my own homework....call me crazy.