Why does TA not work (for you)?

Quote from RCG Trader:

Surf is right on this one. I won't say TA does not work, but I will say that indicators are suboptimal. They are derivatives of price or volume, every last one of em. So it would do one well to learn price and volume directly.
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I don't use indicators myself, but know some people who do. And they don't use indicators in the way they lag (being derivatives of price indeed), but in a way to filter out some price "noise" and must say, quite effectively.

So it depends. :)
 
Quote from oilfxpro:

Here is another profitable entry .

It is not the optimal way to trade , but it is simple and easy.

Use a unique betting sequence starting with a smaller than normal position size and traders will always end up profitable on a monthly basis.

Trading is very simple.
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I agree with this point. It is simple and doesn't have to be complex. Technically. But pretty hard emotionaly/mentally to get to that rare stage Surf is talking about (he's more or less right about it).
 
Surf: The traders making lots of consistent money today, Do you think they are taking directional trades?
Or are they exploiting price inefficiencies and market making.
Do you think that what they do can be replicated by small retail traders?
 
Quote from Jestersofmalice:

Surf: The traders making lots of consistent money today, Do you think they are taking directional trades?
Or are they exploiting price inefficiencies and market making.
Do you think that what they do can be replicated by small retail traders?
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I am not surf, but yes there are directional traders making money, furthermore, there are directional price inefficiencies.

(the rest is not directed towards you jester)

If you guys don't think big institutions use (keep their eye on) indicators and TA, you're mistaken. Some do not use them at all, there are all kinds of traders out there trading for different reasons.

They certainly don't use them exclusively in their trading decisions how a newb retail trader with no clue that just got scammed on a forum or website by a TA wizard with the newest proprietary crossover system, using big words and photoshop with too good to be true BS does though. Thats there own fault.

It's like someone claiming they can fix anything on a car with just a monkey wrench and no knowledge on how a car or engine operates lol or something like that... it's just a tool.

They are useful because people and machines use them.

Don't hate because they don't give you a good edge on their own.
 
I'd like to add, most retail players are undercapitalised and have no idea what they are doing, they can't hold on long enough to get there shit together. That might be one of the bigger reasons why retail has such a high failure rate?

The market is random! I can't make millions within a year with an $800 dollar account,a 50ma on a 5min using poor MM and no clue??!! WTF!
 
Quote from logic_man:

Can someone please explain, for the love of clucking Christ, what there is that isn't "in the past" the instant an instant passes? Throwing the phrase "in the past" around like it is some kind of relevant critique in and of itself is nonsense. It's a given.

Some people know how to use the past better than others. Why humans would be differentiated on every skill except for that one would be interesting to hear about. One guy can use the past to make some sense of the future and another guy can't or can't as well or as consistently. Just like every other skill. The way in which each person is constrained by having to exist partially in the past and partially in the present differs from person to person.

Even in your example of GSAM dumping 10,000 lots, why would they be doing that? Obviously because of something they've just seen, i.e. something "in the past". Or are you saying that not only do they have a "crystal ball", that "crystal ball" uses information from the future to point GSAM in the right direction? That's one hell of a crystal ball. Think about what you are implying with your example, not just what you are saying.
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Well you're getting there. Here there could be some progress.

In this example of GSAM, the event could be a hedge caused by another event in another market, the direction of the risk department, or, yes, the fact that they saw something in that market 'in the past' that makes them think this is a good time. Or, one of 100 other reasons. It could be a hedge for an even larger OTC transaction.

The fact is, we dont know. We never will know. Jack may think he does, but alas he doesnt. The chance of that reason being down to TA is negligible. In fact, the chance of it being down to an event in the market being observed is also quite slim.

One thing we all know is fact: Real money seldom plays a directional bet. It is usually spread. Momentum trading and TA is the least practised activity by the big money.

People are free to disagree of course. This is a debate, not an argument - although the man with the foil hat needs to be considered as what he is - part of the furniture. He should be entertained I guess, but not taken seriously. That privalige should be for his quack only.
 
Quote from contra:

I'd like to add, most retail players are undercapitalised and have no idea what they are doing, they can't hold on long enough to get there shit together. That might be one of the bigger reasons why retail has such a high failure rate?

The market is random! I can't make millions within a year with an $800 dollar account,a 50ma on a 5min using poor MM and no clue??!! WTF!
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You can make money with an $800 dollar account at Oanda,losses and profits can be the same , with a $1m Oanda account or a $800 Oanda account.
 
Quote from TheBlackHand:

No, not at all.

In fact, thats getting closer to the nub
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What's the difference then between reading T&S (aka tape) and graphical presentation of the same trades aka chart? :)
 
Quote from oilfxpro:

You can make money with an $800 dollar account at Oanda,losses and profits can be the same , with a $1m Oanda account or a $800 Oanda account.
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Guess he's speaking more of non-realistic expectations. I tend to concur about it.
 
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