Due to bad money management, just ask Surf or VN, as that's how their sure thing ended. It's harder to lose using an average method paired with solid money management than with a great system with bad money management.
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Why does anyone take technical analysis seriously?
- Thread starter Sotnis
- Start date
Due to bad money management, just ask Surf or VN, as that's how their sure thing ended. It's harder to lose using an average method paired with solid money management than with a great system with bad money management.
Of course, of course. One more question: did you compare average year return of people who are trading using TA with other traders?
Of course, of course. One more question: did you compare average year return of people who are trading using TA with other traders?
Have you?
Same reason that most of the people with tennis rackets do not finish in the top 50 at Wimbledon. GET RIGHT. ---Thank you for your time---
Let's start with someone who is already a millionaire and his networth is $1,000,000 he is retired and is fed up with the Fed's ZIRP, he is not one of the elite traders and enjoys a rather pathetic 26% win rate! He risks no more than 1% of his networth on any one trade, yet his winning trades are being locked at +3% of his networth. So let's see:
$1,000,000 networth
300 trades a year
220 losses @ 1% risk -$2,200,000
80 wins @ 3% reward +$2,400,000
Yearly gross gain +20%
26% win rate
So a 20% return all of the sudden looks amazing considering that he would get F... All If left in a bank or invests (cough cough) in government bonds. He has beaten the inflation and made a good profit too. Not too shabby if you ask me
$1,000,000 networth
300 trades a year
220 losses @ 1% risk -$2,200,000
80 wins @ 3% reward +$2,400,000
Yearly gross gain +20%
26% win rate
So a 20% return all of the sudden looks amazing considering that he would get F... All If left in a bank or invests (cough cough) in government bonds. He has beaten the inflation and made a good profit too. Not too shabby if you ask me
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For the same reason why all traders who don't use TA are not millionaires.
A golden tip for you: maybe you should not trade.
Yes because I have the secret list of all the traders in the world using TA and the ones who are not using TA plus all their audited financial statements so just give me a minute to run some calculations. Funny how someone who cannot whip out financial statements to prove TA can be used to make money has a losing argument but you cannot prove all TA traders lose money. TA is just a tool, success is based on the trader not the tool. This is the point many of you cannot understand.Of course, of course. One more question: did you compare average year return of people who are trading using TA with other traders?
Showing you a trader making money using TA, FA or a squirrel's nuts will not prove anything. Every trader out there is using some tool to analyze price action or the stock and they all are just tools. Much like most of the people in this discussion.
1) Most traders do not use TA the same way as the guy/gal sitting next to them and that's due to personality differences, different goals and different perspective about the markets. Seriously, do you think everybody thinks the exact same way ? Answer...they don't.
2) Everybody has a different experience level, different discipline, different learning abilities, different goals and so on. For example, in any class at a school...all students taking the exact same class...they all do not get the exact same grade. Thus, we just learn/apply differently than the person next to us even though we're learning the same topic.
3) Not sure why you think folks need to be a millionaire to prove something works for them. Some are just happy to trade for a living and make more money than their prior job.
4) Most traders can't even agree on what exactly is TA. Thus, is obviously evident recently in all of these TA threads and there was a thread specifically about that topic..."What is TA" and the debate has spilled over into these most recent TA debates.
The fact remains, most traders are discretionary and not automated. Simply, most traders just trade the way they want too even if its different than someone else using the same trade method regardless if its TA, FA, Statistics or whatever.
You're different than me and I'm willing to bet we don't trade the same way...its just that simple.
P.S. Timothy Sykes is a millionaire trader and he made his first million while using TA although he didn't exclusively use TA. That first million from his trading was verified.
Lol. Why? Just because I don't believe in TA?