Simple defense of technical analysis

Quote from tommo:

Im not trying to make an argument one way or another just passing on my observations.

I have been a professional trader for 7 years. And not just trading from home i mean on trading floors with hundreds traders .Ive never known one of them make money from technical analysis. .
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this made me think of the pit,that environment is the herd
 
id say these days the trading arcades are the new pits, its all order book watching, reading the flow, gauging how everyone is positioned around you "the herd" as you say
 
Quote from tommo:

Im not trying to make an argument one way or another just passing on my observations.

I have been a professional trader for 7 years. And not just trading from home i mean on trading floors with hundreds traders .Ive never known one of them make money from technical analysis. Some of them dont even have charts. People will be aware of things like where there might be some support line etc. But most of the edges are far more specific in trading .Reading an algo in the order book, reacting to news releases, arbitrage strategies etc. My own personal experiences, the only time i had a losing year was when i tried running some technical systems( and yes i had good risk management, only risked 1% of account, followed system religiously etc etc)

I am not saying it cant be done, i want to make that clear. I guess im just not very good at it, but ive been around the block a bit, thought my comment might be of some interest.
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+1.

Similar observations.

Doesn't stop the sales guys making a phone call based on TA though :D
 
true,another way to say that is, if a wolf comes from the south,the sheep will run to the north,ta is just the fence the sheep are running to
 
Quote from tommo:

..... I have been a professional trader for 7 years. And not just trading from home i mean on trading floors with hundreds traders .Ive never known one of them make money from technical analysis. Some of them dont even have charts.....
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Thank you for that. Has confirmed what I've been believing for some years. Makes my confidence perk up knowing I'm trading against a bunch of bozzos. One need not be smart to win in this game, not required - to beat 'hundreds of traders'.
 
Quote from tommo:

Im not trying to make an argument one way or another just passing on my observations.

I have been a professional trader for 7 years. And not just trading from home i mean on trading floors with hundreds traders .Ive never known one of them make money from technical analysis. Some of them dont even have charts.
More...
That would make sense, only the traders with desks have monitors
:)
 
Quote from hoodooman:

Anybody, what win rate would you expect from a successful technical analysis technique?
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Overall 35% wins is probably average with the skilled making it work via money management. There's no edge in TA except in rare cases.
 
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