Technical Analysis Has Contributed To A Massive Wealth Redistribution
- Thread starter Sergio77
- Start date
Technical Analysis was created during the 60s and 70s? LOL
He stated...
Therefore, the edge is the art part, not the science. Anyone hiring a team of PhDs to develop algos better make sure that at least one of them is an artist in the field. How to distinguish the artist in a group? This is another edge in itself. Some funds miss excellent opportunities when they decide to hire developers with impressive academic qualifications and reject the true artists in the field.
That art part he talks about is the "discretionary" aspect of using TA. Simply, discretionary traders use TA differently than those trying to use TA in a quantifiable/scientific way.
You can then sub-category discretionary traders...some use TA all by itself and others use TA with other things. In comparison, those using TA in a quantifiable/scientific way are using automation or system programs/codes regardless if it works or not...they are exclusively using TA all by itself
Yeah, TA was invented long before the 60's...try like the 17th century (Dutch stock exchange) or the 18th century (Japanese rice market) but it was not referred to as technical analysis until other markets came along in the 19th century with their own theories and that's when it all begin to be called technical analysis.
Technical analysis is responsible for a lot of wealth transfer, absolutely agree. Used incorrectly by the majority of traders and exploited for benefit by the elite few.
EDIT: I have not got a clue about the book or the link commented on subject
EDIT: I have not got a clue about the book or the link commented on subject
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"Interesting", yes.
"Article", no: it's an advertisement for the author's new book.
Don't get me wrong: I have a very high opinion of him as a trading author, and I know that his earlier book Profitability and Systematic Trading has shown large numbers of struggling traders what they needed to know to stop randomly gambling in the markets (whether they took any notice of it or not is another matter); but your link above is to an advertisement, not to an article.
Any time I see anything from his website, priceactionlab, I laugh. I laugh because when he discredits TA, all he ever uses is random data. He makes it appear as if S/R are random lines and that traders short or go long randomly at random lines. If you get the S/R right, the edge does appear. All his examples deal with random coin tosses and such, so no wonder he concludes what he does. GIGO.
I believe "discretionary" are those who have rules but much more flexible unlike me who sees trading as on/off switch 100% rule based. You have to have some type of experience coming into the game to play, and let's face it, it is a game, those who get most points does better than those who lose points. My goal is to play as perfect as I can using what I know to do it, and what all this means is I don't bet the house, or food for next week, have enough put away so I can live forever if I want to still play the game. If you not saved enough to make sure you can even play the game, you constantly stress out during the game. I don't get at all those who quit jobs and just do 100% of trading, that puts so much added stress. Keep your jobs and trade too. Get better jobs that you like to do besides trading, you just make so much more long term trading and less screen time. But here is biggest reason people day trade, excitement, they dead from life and thinking they easily going to be hitting homeruns is easy, and it not, All the free crap on Internet just makes it harder, clouds your judgement of what works and 99% of what doesn't work.
People don't even realize that trading started at birth of man, give a rock for piece of meat, not much different trading money for ribs, People should take what they know and use it in the markets, no one goes out shopping saying I want to overpay for tomatoes, but women often do most of the shopping so naturally men are worst at trading. Ironic.
Ain't that the truth.
I don't think I've ever seen a guy in the grocery store carefully review his sales receipt in comparison to a woman. They just got an eye or brain for that stuff...easily spotting something that's off by a few cents.
On the flip side, I don't see guys holding up the checkout line like woman do. A woman just knows when something is a tiny little bit incorrect about a price and they don't want to be ripped off.
Man is this ridiculous.
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