Stock Picking - The Flaws of Technical Analysis

This is a discussion on Stock Picking - The Flaws of Technical Analysis within the Educational Resources forums, part of the Commercial category; Originally Posted by tomorton I continue to argue that the elimination of daytrading alone as a style of trading would ...

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Old Dec 16, 2016, 5:58pm   #9
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Originally Posted by tomorton View Post

I continue to argue that the elimination of daytrading alone as a style of trading would eliminate many losing traders before they had a chance to blow up
Or deny traders the option of trading on margin. That alone might motivate traders to determine just what it is that they're doing. Daytrading in and of itself is not the problem.
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Old Dec 16, 2016, 10:29pm   #10
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I can only speak from personal experience.
In the early 90s I invested and made some money.
In the mid 90s I traded on T25 and made a much higher return.
From the late 90s I have day traded and done even better, so much so that I sold my dental practice in 2000 to trade for a living.
Why and how in very general terms?
I have a very brief look at fundamentals just in terms of news flow, price moves which demonstrate clear sentiment in various set ups and price action itself as a refining trigger. Sometimes I use margin, usually not. I am in and out of trades in the same day so I repeatedly use the same capital over and over again every day. That you cannot do in investing.
So I read an article such as this which demonstrates a rigid and inflexible and biased (as tomorton rightly points out) attitude and it is all I can do to be polite and not laugh at sneering ignorance masquerading as knowledge and experience.
Yes, of course most day traders blow up, but that is because they think they know what they are doing and plunge in steeped in a total failure to understand what they are doing. Trading appears simple but requires the knowledge and the experience practice and thought bring in their wake, not to mention personality traits including the ability to ignore emotional experience. It's rather like not learning to drive properly as it looks very simple and straightforward so why not just go out and buy a Ferrari and drive round Marble Arch at 80 mph. Or trying to drive on the San Diego Expressway at the same speed in heavy traffic or the Paris Peripherique.
So yes, most people who do that mess up spectacularly.
It's like a lot of things in life, know what you're doing, practice, gain experience, then do the business, enjoy and prosper. Rocket science it isn't.
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Last edited by Mr. Charts; Dec 16, 2016 at 10:38pm.
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Old Dec 18, 2016, 9:22pm   #11
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RE: Stock Picking - The Flaws of Technical Analysis

The author, Russell Wayne, is a CFP who runs an asset management firm (essentially a sell side operation) in CT. He rips technical analysis while appearing to have barely researched the topic. Instead he quotes John Train, a 90 year-old stock market author and strong adherent to fundamental analysis. A technician could respond by quoting prolific financial author and technician Jack Schwager. Neither approach effectively analyzes the wide ranging discipline.

This article is so brief and superficial as to not even be worth reading, something in the past you would have expected in something like Reader's Digest.
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