Why Do Most Retail Traders Favour Technical Analysis ?
- Thread starter Fundlord
- Start date
Most traders lose regardless if they're using fundamentals, technical analysis, orderflow reading, spread systems, scalping, daytrading, swingtrading or whatever...that's just how the markets are functions.
Simply, some will succeed and be consistent at such regardless to how they're trading and what tools are being used. To those that do succeed...whatever they're using obviously works but I guarantee you its not the only thing they're using because successful trading involves more than just trade signals.
I truly believe its the mastering of those "other variables" (not trade signals) that differentiate profitable traders from losing traders.
Just take a look at all the trade journals here at ET...most of them is about trade signals, how much points lost/won...any other info (those other variables) by us retail traders is just generically discussed by name only even if it impacts greatly our trade results.
Retail traders see this everyday and most think this is how its done even though most are consistently losing or struggling to get to breakeven. Yet, once in awhile, someone thinks outside the box and discovers there's more successful trading than just trade signals.
Simply, some will succeed and be consistent at such regardless to how they're trading and what tools are being used. To those that do succeed...whatever they're using obviously works but I guarantee you its not the only thing they're using because successful trading involves more than just trade signals.
I truly believe its the mastering of those "other variables" (not trade signals) that differentiate profitable traders from losing traders.
Just take a look at all the trade journals here at ET...most of them is about trade signals, how much points lost/won...any other info (those other variables) by us retail traders is just generically discussed by name only even if it impacts greatly our trade results.
Retail traders see this everyday and most think this is how its done even though most are consistently losing or struggling to get to breakeven. Yet, once in awhile, someone thinks outside the box and discovers there's more successful trading than just trade signals.
FALSE
Can you state some specifics please. I am reading mostly generalities in the words here.
Really a joke ?? FCsake, Incidentally a guy sent me a PDF called SLAB had your name in it.It's a joke.
Had a read and yah it's trendline trading, pretty safe way to go. Always amazing to see how the simple approach can b the most effective. I use t lines with other stuff.
Appreciate your effort in producing it
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In ET we get lost on semantics all the time, at the end of the month what really matters is your P/L.
1. Where is price more likely to go from here based on one of those patterns that happens every day? (Profit potential in one's trading time frame)
2. Where is the nearest line in the sand that, if crossed, means price is more likely to continue to the next line in the sand? (Risk in one's trading time frame)
3. Is the risk to reward a couple ticks better than even? (If yes, place the order; if no, wait for the next pattern)
I thin it depends on the tf and the style of the retail traders. For short-term traders, TA tends to work better because TA is more reliable. Fundamental analysis is an noble approach but it does not always yield the result and/or the impact that is expected from the fundamental analysis at the time that you are looking at. The market has a mind of its own and decides when and how and for how much the impact is going to happen from the fundamental analysis but TA is looking at what is or has happened for sure at the moment that you are trading.
But for longer term retail traders, fundamental analysis would yield higher returns because they don't care what the instrument is doing right now in the market it looks at what will eventually happen to the instrument when the market does decide to act according to fundamental analysis the longer term retail traders would get a windfall so it really depends on what the trading style and tf of the retail traders.
"Why Do Most Retail Traders Favour Technical Analysis ?"
Easy to open an account
http://www.tradingacademy.com/lessons/article/the-challenges-of-trading-small-futures-accounts/
Easy to follow blue line on screen
http://www.investopedia.com/university/movingaverage/movingaverages2.asp
Easier to backtest 30 samples?
http://www.futuresmag.com/2011/05/31/how-backtest-trading-systems-and-avoid-curve-fitting
Yea, easy alright, trading when you first start is truly as easy as threading a needle with your nose. You don't have clues of what works and what doesn't work and so many YouTubes showing others that generally can't trade using indicators. Better to look Price Action then use indicators to make the Price action easier. Nothing wrong with mixing the two so long as one is a where that neither alone will be a Holy Grail, so little is written on Money Management cause it is more boring topics but Money Management if you apply the indicator and rules if where the profits are.
Price Action is not exciting I often think why Retail Favor TA. You have to apply rules to Price Action and some of TA seems to be end all, and much of it is, end of one's account.
Easy to open an account
http://www.tradingacademy.com/lessons/article/the-challenges-of-trading-small-futures-accounts/
Easy to follow blue line on screen
http://www.investopedia.com/university/movingaverage/movingaverages2.asp
Easier to backtest 30 samples?
http://www.futuresmag.com/2011/05/31/how-backtest-trading-systems-and-avoid-curve-fitting
Yea, easy alright, trading when you first start is truly as easy as threading a needle with your nose. You don't have clues of what works and what doesn't work and so many YouTubes showing others that generally can't trade using indicators. Better to look Price Action then use indicators to make the Price action easier. Nothing wrong with mixing the two so long as one is a where that neither alone will be a Holy Grail, so little is written on Money Management cause it is more boring topics but Money Management if you apply the indicator and rules if where the profits are.
Price Action is not exciting I often think why Retail Favor TA. You have to apply rules to Price Action and some of TA seems to be end all, and much of it is, end of one's account.