Technical analysis won't make big investor?

mizhael · Mar 9, 2009

Quote from tradersboredom:

These 10 billion funds don't trade the float, they buy the entire company and when they do trade, they call their broker and sell by the phone to another party, it's not in the open market. They have all or nothing big blocks minimum is 25% of outstanding shares at set price or no deal. a real investor wants 100% of outstanding shares and take the company private. owing 5% or less of any company is 'minority shareholder' or silent partner in a business.

Hey those are the private equity funds, or buyout funds. Those are interesting businesses too. But for now let's focus on hedgefunds which do trading, and how do they scale up starting from technical analysis? I am just asking whether it's possible to run a large fund using technical analysis skills.

blnbr · Mar 11, 2009

Quote from mizhael:

Any more details about how they started with technical analysis and how they apply technical analysis to management their 50B hedgefund?

To know something about Paul Tudor Jones, Bruce Kovner and other big technical traders and their methods, you may read Market Wizards by Jack Schwager. Just go to Amazon.com and check it out. It's a very good book.

TraderZones · Mar 11, 2009

Quote from Brandonf:

Paul Tudor Jones and Bruce Kovner both have $50billion + hedge funds. Both of them say that technical analysis is an important part of the method they use.

PTJ has already been discussed before in other threads - that TA belief about his trading is much less than people are led to believe.

GCSICLRBC · Mar 11, 2009

Quote from TraderZones:

PTJ has already been discussed before in other threads - that TA belief about his trading is much less than people are led to believe.

PTJ catches tops and bottoms by trading Support & Resistance.

He's probably smart enough to ignore stochastics, RSI & all these other indicators & oscillators fools dreamed up.

5yrtrader · Mar 11, 2009

See link

http://www.managedfutures.com/top_cta_rankings.aspx

Sort by AUM, the top biggest manager has $23 billion. All their trades are based on technical analysis and not fundamentals.

short&naked · Mar 11, 2009

Quote from mizhael:

Let's imagine one day you become a big investor, you manage a 10B hedgefund, how do you apply technical analysis?

The fund you manage and the strategies you use are two difference things. In fact, Buffet's approach is much less scalable than forex or futures.

joshuaone · Mar 12, 2009

Mizhael: You might be interested in this recently released book: The Heretics of Finance: Conversations with the Leading Practitioners of Technical Analysis (Jan 09): http://books.google.com/books?id=c6L0cJyPz40C

I haven't read it yet, but look forward to doing so.

mizhael · Mar 12, 2009

Quote from TraderZones:

PTJ has already been discussed before in other threads - that TA belief about his trading is much less than people are led to believe.

Interesting? Could you please elaborate?

mizhael · Mar 12, 2009

Quote from 5yrtrader:

See link

http://www.managedfutures.com/top_cta_rankings.aspx

Sort by AUM, the top biggest manager has $23 billion. All their trades are based on technical analysis and not fundamentals.

Eye-opening to a newbie like me. I've only heard about hedgefunds. How do these guys different than hedgefunds?

How do you know they are based on technical analysis?

Thanks!

mizhael · Mar 14, 2009

Quote from joshuaone:

Mizhael: You might be interested in this recently released book: The Heretics of Finance: Conversations with the Leading Practitioners of Technical Analysis (Jan 09): http://books.google.com/books?id=c6L0cJyPz40C

I haven't read it yet, but look forward to doing so.

Thanks for the interesting book. The Amazon reviews are mixed.

Want to read it...