Technical analysis won't make big investor?

YOU DON'T NEED TECHNICAL ANALYSIS AND ALSO NO FUNDAMENTAL ANALYSIS.

all you need is to buy an index fund and retire and have better returns then Warren Buffett.

the people who quote warren buffett to show technical analysis doesnt work are the same people who fail to realize berkshires holdings UNDERperformed the index the last TWENTY years.

he got most of his money when the SPX quadrupled from 150 to 600 since 1960

All you needed to do is measure greed and fear. greed will always be bigger then fear so playing the long side randomly will always create big winners.
 
Quote from mizhael:

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!
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They are hedgefunds...

They fall into a smaller subset called CTAs (commodity trading advisors) who typically trade futures contracts based off computer systems they have developed. Anyone one that is using a computerized system is using technical analysis.
 
Quote from college_trad3r:

YOU DON'T NEED TECHNICAL ANALYSIS AND ALSO NO FUNDAMENTAL ANALYSIS.

all you need is to buy an index fund and retire and have better returns then Warren Buffett.

the people who quote warren buffett to show technical analysis doesnt work are the same people who fail to realize berkshires holdings UNDERperformed the index the last TWENTY years.

he got most of his money when the SPX quadrupled from 150 to 600 since 1960

All you needed to do is measure greed and fear. greed will always be bigger then fear so playing the long side randomly will always create big winners.
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You have no idea what you are talking about.

Please see:
http://www.berkshirehathaway.com/letters/2008ltr.pdf

Buffet has averaged a 20.3% annual return while the S&P has averaged a 8.9% return (including dividends). He beat the S&P by 27.4 percentage points in 2008

5yr
 
Quote from 5yrtrader:

You have no idea what you are talking about.

Please see:
http://www.berkshirehathaway.com/letters/2008ltr.pdf

Buffet has averaged a 20.3% annual return while the S&P has averaged a 8.9% return (including dividends). He beat the S&P by 27.4 percentage points in 2008

5yr
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Thanks for the link, 5yrtrader, it was interesting. This company Berkshire Hathaway is in news as ratings were cut and shares downgraded. What does it reflect?
 
If u are running a big hedge fund,you will have to know technical analysis inside and out,say you get that big and you're networking with insiders at 3 or 4 of the largest firms and they tell u we are buying goldman sachs,you still have to pick an entry point,how will u decide this,and an exit,same question, its probably one of the most necessary tools for trading since we went internet
 
Is Quantitative Analysis included in Tech. Analysis?
How about Systematic Trading vs. Technical Analysis?
How about Neuro-linguistic Newsfeed Agent vs. Technical Analysis?
How about Quantitative Analysis over a company's balance sheet?

Before all of you start writing other people's names and write assumptions of how they trade, I think the range and definition of Technical Analysis in this thread needs to be agreed here.

PTJ has a lot of quants. He does a lot of Stat. Arb between equity and futures. Is this "Technical"? Buffet's background is Graham's Security Analysis he bases his trading and has a few Quants working for him going through all the reports. Is this "Technical"? Is Credit / Rates Pricing? Neuro-lingo predictor? Statistical Arbitrage? Volatility Reversion? Are they "Technical Analysis"???

My definition:

If you use charts = Technical Analysis.

All of what I mentioned doesn't require charts. (And... you don't need charts to develop trading systems.) Also, the debate and categorizing trading between "Technical" and "Fundamental" is like 15 years old, completely out-dated. The trading industry has changed since the good ol' Market Wizard days...
 
The amount of funds you have doesn't change the analysis of stocks, just how many shares you buy.

Also, if you are running a multi-billion dollar fund, you can start the momentum instead of looking for it.
 
Quote from TSGannGalt:

Is Quantitative Analysis included in Tech. Analysis?
How about Systematic Trading vs. Technical Analysis?
How about Neuro-linguistic Newsfeed Agent vs. Technical Analysis?
How about Quantitative Analysis over a company's balance sheet?

Before all of you start writing other people's names and write assumptions of how they trade, I think the range and definition of Technical Analysis in this thread needs to be agreed here.

PTJ has a lot of quants. He does a lot of Stat. Arb between equity and futures. Is this "Technical"? Buffet's background is Graham's Security Analysis he bases his trading and has a few Quants working for him going through all the reports. Is this "Technical"? Is Credit / Rates Pricing? Neuro-lingo predictor? Statistical Arbitrage? Volatility Reversion? Are they "Technical Analysis"???

My definition:

If you use charts = Technical Analysis.

All of what I mentioned doesn't require charts. (And... you don't need charts to develop trading systems.) Also, the debate and categorizing trading between "Technical" and "Fundamental" is like 15 years old, completely out-dated. The trading industry has changed since the good ol' Market Wizard days...
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Okay! I agree. Technical Analysis doesn't need math/stats, it's one layer below the Quant Analysis... We are talking about Technical Analysis here, not Quantitative Analysis.
 
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