Technical analysis :useless junk science
- Thread starter oilfxpro
- Start date
But you are still not consistent, which is not a surprise with being addicted to EA's aka "magic formula". Sadly, but Xspurt pointed it out very well. So all you know is what is wrong, not what is correct in trading.
You have all signs of chronic "holy grail" "get rich quick" "fairy comes and turns Cinderella into a princess" you call it a name, digger, not trader who treats this profession as a serious profession and is willing to learn how to make money applying the knowledge.
If trader gets failure after failure from technical analysis , he is bound to become depressed.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=236978
What is the difference between betting on horses and betting on strong trends ?One you are betting on the form of the trend and the other , you are betting on the form of horses based on previous performance.
Great, you see the main psychological problem which stops most from becoming consistent. Solve it and you'll get a chance.
Indeed, most simply fail to accept the fact that losses are integral part of successful speculation/investment. They desperately try to find "magic formula" to avoid those losses, because they are taught from early years that losing is bad, negative result is something done wrong etc.
Exactly this cause is the reason there are so few people successful in business, trading, investment and other activities which require taking risks and accepting uncertain outcome as well as losses on a regular basis.
Your perfect example with being stopped out 2 times with 3 ticks stop if one was to trade the breakout of yesterday's channel in Euro. See, you treat those losses as something going wrong, something negative. But in reality: if you just accepted them, what stopped you from trying it again and getting the big move right into your pocket far exceeding the amount lost on previous tries to go long?
Think about it seriously, learn to lose correctly and you'll learn to win.
A stable has high costs for stabling, training, feeding, vets, traveling etc. and winning often doesn't cover the costs so stables have to bet on their horses to make money. That means they have to fool the form book.
You're in the UK. There are speed spies who use high power binoculars and stop watches to figure out when a horse is in top shape on the gallops. Betting patterns on stables matched with this can tell you when the form book is false.
You can get similar false data on the markets like Enron when the analysts were issuing buy signals all the way to the bottom because of conflicts of interest while TA was saying - you gotta be joking.
I think you'd do better on horses with EA's, especially if you focus on picking favorites to lose.
Cfx,
this is correct at so many levels.
excellent reply.
