What is Technical Analysis? Why does it work?

i am nobody said:
What you say basically is: trading is buying low and selling high. But as you have no clue how to do that you just jump in and out, and money management should generate the profit?

Can you explain how you can get away with being wrong on the direction thanks to money management? You get in and the trade goes against you, what then? You lose money as the price went the wrong way. How can you get out without a loss thanks to money management?
Your strategy is the weirdest thing I ever read. The only thing you can do is take position in both directions and cut the wrong one as quick as possible.

As trading is buying low and selling high, the first thing to do is find a system to buy low and sell high. After that and only AFTER THAT you work on money management. Money management should protect you against black swan or unexpected events. Money management is not used to generate profits, but to protect profits.
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Maybe the answer to this question would clarify. Is selling a iron condor directional? My definition of directional is that no its not. Maybe your definition of directional is that it is.
 
bogitrade said:
TA is borderline scam if not outright and its teaching should be banned.
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LOL! Banned by whom? Congress? The UN? God?

TA is a huge low-quality junkyard with a handful of treasures hidden inside here and there. The fact that you've never found one of the treasures, and likely never will, doesn't negate the fact that they are there.

Sorry, you just don't have what it takes to be a technical trader.
 
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bogitrade said:
TA is borderline scam if not outright and its teaching should be banned.
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A lot of retail traders use chart analysis, some hedge funds use chart analysis, some institutional traders use chart analysis, some hedge funds use chart analysis other occupations use charts (e.g. real estate forecasts, weather forecasts) and so on.

I guess it depends on what type of TA is being used on the charts to help make decisions while using other resources.

Simply, TA is a big place...not a scam but many just don't know how to use it to help them and many don't need it. Usually those that use it...its not the only thing they're using.
 
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