Why does anyone take technical analysis seriously?

[oraclewizard77]

TA is taken seriously since many profitable traders use it. Statistical analysis proves it works like when one of my systems was # 1 on a tracking website that tracked every trade made for over a year and my system was number 1. Yes, it was not sim because I had subscribers pay me to trade it and I traded it with real money. Also, I had to pay taxes on the profit from subscriber revenue and have e-mails from the site with the tax information being sent to the IRS so that I can pay my taxes correctly.

You can go to most tracking websites where they list the systems with descriptions for example, if the trader uses TA and see there win% and drawdown.

The problem is that the naysayers offer no proof that their non TA systems if they even have a system or trading plan works. Either they can't trade and believe no one can, or they pretend they have a non TA system but they are not able to provide any evidence that it is profitable.

Also, there are systems that work without TA like Buffet's but he does not then go and disparage other working systems. People of high net worth do not troll on ET, nor do they get banned multiple times for trying to not pay for marketing their failed advice or being trolls.

 

[debitspread]

What's left indeed.

Uhh, buying good stocks and selling bad ones. But that requires thought and insight and effort, rather than just videogaming skillz. http://bit.ly/1hrlJNV

 

[ras72]

Just out of curiousity, what else is there for day traders (and I'm guessing most of the gawkers here are day traders) to base their trading decisions on...

"Gawkers" LOL
(Shouldn't it be "gawks"? Funny anyway)

 

[wrbtrader]

TA is taken seriously because it sells. A price-action-trading teacher can pitch products and make a killing on the subject of TA without mentioning money management concretely or showing their own trades.

The biggest seller of TA is the data vendor...like TradeStation, eSignal, Multicharts, Thomson, CQG, Bloomberg and many others. We're talking abut a billion dollar industry just by the data vendors alone...no other seller of TA (e.g. book authors) can match that.

Simply, you will never see the biggest seller of TA give you lessons on money management, diversification or anything else outside of how to use their data and which subscription is suitable for you.

Don't believe me, I once ask you who was your data vendor and you refuse to answer. Ok...I get it...you'll rather attack instead of being productive at the forum. Yet, before you take your next jab at book authors...pick up the telephone and call the customer service or sales rep of your data vendor and ask if they offer classes on money management, risk management while you use their service...a service you're paying every month.

While you're at it...go look at the above websites for their monthly service fees just to have basic service...you now know who truly is making a killing pitching their products. Most of them give no real lessons on how to use all those indicators or chart patterns they talk about beyond anything of merit...you can find more info about TA on Stockcharts.com in comparison to what the data vendors say about their technical analysis.

That's the next level of TA sellers...websites like Stockcharts.com with their premium services.

My point, those TA book authors you've been pointing the finger at since your arrival to this forum...TA book authors are small fish in the TA industry which is why some of them try so hard to partner themselves with the big boys in the industry...similar to the remora fish attaching themselves to sharks, whales, large turtles and so on...often called scavengers of the sea or cleaners of fish.

https://en.wikipedia.org/wiki/Remora

Now guess how much money eSignal made last year...you'll be shocked.

Therefore, if you truly believe TA is a problem because its not in combo with lessons about money management, risk management, diversification and so on...you may as well start at the top of the food chain....the same folks that are the whale in the ocean that pushes technical analysis. Now go call your sales rep of your data vendor and demand free classes on risk management and other things considering they're encouraging you to use TA via those fancy data advertisements.

P.S. If you're using free chart services...more power to you if that's all you need to do what you do.

 

[marketsurfer]

If you think about it, i bet you can come up 5 or more ways to day trade without relying on past price charts. surf

 

[romik]

If you think about it, i bet you can come up 5 or more ways to day trade without relying on past price charts. surf

Surf, you still haven't explained how would you establish targets if past data has no relevance.

 

[i960]

Most traders lose money due to money management, discipline, and psych issues rather than TA or FA.

 

[wrbtrader]

Most traders lose money due to money management, discipline, and psych issues rather than TA or FA.

This has formally been proven.

In addition, it has informally been proven here at ET that such is true via the trade journal section litter with traders admitting the cause of their failure. There's also been a few surveys on twitter and stocktwits about such...

TA and FA is at the bottom of the totem pole for reasons why traders fail.

 

[Q3D]

CQG is my data..they never said their data was going to lead me to profitability.

Psych issues and discipline issues are exacerbated by HFT-paced markets

 

[lawrence-lugar]

If you think about it, i bet you can come up 5 or more ways to day trade without relying on past price charts. surf

That's alot of thinking
...joking aside...successful Trading is part Art, part Science. -- that's why alot of things are or may appear very Grey...and highly debatable.