Technical Analysis = CRAP
- Thread starter Frits
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Take about 100 trades with a stop loss at 5 ticks and a take profit of 5 ticks. You might start out with a good run, but in the end statistics will catch up with you and you'll end up around a 50% winners and 50% losers. Probably a bit less winners since you might not get a fill at your profit target. But you'll end up around break even... But wait! There is the brokerage! So you'll end up being a loser! I compare this to playing black and red with roulette and green (zero) is your brokerage.
Even if you e.g. set your TP at 2 ticks end your SL at 8 ticks. You'll have 80% winners and 20% losers so in the end you'll still end up at BE. If you want to be a winner you need to limit your losses and let your profits run. Those who trade with a fixed SL and TP are doomed to fail.
If you don't like to SIM trade try tossing a coin, it's the same result. For more info on this subject read: http://www.smbtraining.com/blog/random-thoughts-or-rather-thoughts-about-randomness
Shaka
,Frits
Quote from Smart Money:
Maybe some brilliant minds have come up with moneymaker signals but they aren't sharing it. Perhaps the brilliant minds know that if the moneymaker signal gets into the public domain it will not work for the reasons you cited. So the brilliant minds are brilliant enough to know not to let that information out.
Now...consider that you didn't realize this...does this imply that you aren't a brilliant mind? and therefore have no chance of developing a moneymaker signal?Ok, I'll say here that I'm joking and give you the benefit of the doubt.
I can say that I wasted about 20 years of my life when I concluded that T.A. didn't work and never looked at the issue again for a couple decades. Now I'm making money on it all the time.
SM
You could be right Smart
! But those brilliant minds are certainly not with the educators on the internet that sell you courses on DVD for a couple of hundred dollars, charge thousands of dollars for personal coaching programs and hundreds of dollars for entrance to their crap trading support rooms 
!!Glad you found a way to make money!
Spoken like a true salesman! "No, no it's not our product that is bad! It's the fact that you need to improve your skills, you need to become a better trader! Why don't you buy another one of our courses on DVD on how to improve your trading skills? It's on offer this month for only $499,-"
You kill me TheLast
!!Sounds like you got scammed to me and you are bitter about it.
Just because you paid a few grand to a vendor who can't trade who taught you some useless or out of date technical strategy that you can probably find on google, doesn't mean all TA is useless..
Just because you paid a few grand to a vendor who can't trade who taught you some useless or out of date technical strategy that you can probably find on google, doesn't mean all TA is useless..
I think your post was aimed at me Bison. Indeed I got scammed, but I'm not bitter about it. Actually it helped to open my eyes! Sounds a bit weird but maybe I should thank those who scammed me
!You offer one to one mentoring for "serious traders". Well that's great David! I'm doing just fine with the "limit your losses and let your profits run" approach. So thanks but no thanks.
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