Why technical analysis, e.g. charting is not for funds?

This is a discussion on Why technical analysis, e.g. charting is not for funds? within the Technical Analysis forums, part of the Methods category; Fund charting is free and common for US investors, e.g. http://stockcharts.com/def/servlet/S...2,26,9]&pref=G But not here. What do you think is/are the ...

View Poll Results: Why technical analysis, e.g. charting is not for funds?
I do not know/believe in technical analysis 0 0%
I know/believe in technical analysis but it is not for funds 2 14.29%
Applying technical analysis on funds is too troublesome/expensive 0 0%
I do not believe/invest in funds 5 35.71%
No, I use technical analysis for funds 2 14.29%
I don't know 5 35.71%
Voters: 14. You may not vote on this poll

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Old Dec 18, 2005, 8:42am   #1
Joined Dec 2005
Why technical analysis, e.g. charting is not for funds?

Fund charting is free and common for US investors, e.g. http://stockcharts.com/def/servlet/S...2,26,9]&pref=G But not here. What do you think is/are the reason(s)?

1. I do not know/believe in technical analysis
2. I know/believe in technical analysis but it is not for funds
3. Applying technical analysis on funds is too troublesome/expensive
4. I do not believe/invest in funds
5. No, I use technical analysis for funds
6. I don't know
globevestor is offline   Reply With Quote
Old Dec 18, 2005, 2:18pm   #2
Joined Dec 2005
globevestor started this thread
Quote:
Originally Posted by Joules MM1
A spurious preposition.

What is an index ? A fund is a group analysis en masse ergo the fund itself is not an island and separate from any scrutiny. An index is a selection by cap. The difference is in the selection process of which instrument goes into which basket. Regardless the criteria is still subject to analysis (technical or otherwise).

The selection criteria of the fund managers says much about their performance as analysts via the very selection of investment they make. Therefor as they use technical analysis for entrance and exit (as a minimum) then surely that same selection is open to technical analysis as a grouping.

An index is a group selection based on a very small criteria (usually cap base) whereas a fund is based on a mixture of technical analysis and fundamental outlook of future performance. Surely we can then judge that same fund in the same way.

I think NOT ENOUGH techincal analysis is put into the performance of the managers and this is never more obvious than the capital inlfux that arrives late into a fund that has been a hot performer (read as : booked good earnings above the consensus). The bulk of the public rarely scrutinises appropriately managment performance and generally will chase the highest number only to find they have already arrive too late for the party.

Generally, I find little to be enthused about funds (mutual, superannuitant or otherwise) as the use of funds is usually based on the lack education to invest for oneself. Leaving your investment needs to a manager that, at best, rarely outpaces the underlying index they are supposed to beat....remember that funds managers are there to get your capital and to extract fees.

Maybe calling the preposition "spurious" is a tad unfair but after (22 years of ) trading and watching funds managers show dismal returns verus the locale, largest indecies, I think one can do a lot better than to involve oneself in funds that can be beaten on regular basis. That governments have made and given the funds managemennt industry a bona fide atmosphere, by decree, does little to hide the reality that most people simply don't take responsibility for their own financial well-being. The idea that funds management may not be scrutinised by technical analysis fits into that too.

Julian
I agree most investors just want returns without much work. I use funds whenever there are bull markets not accessible thru my brokerage account and I can not find good trading setup due to market environment and/or my limited knowledge/time. I always admire those who can make a few pounds regardless of the situation.
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Old Dec 31, 2005, 1:02pm   #3
Joined Nov 2001
Quote:
Originally Posted by Joules MM1
Maybe calling the preposition "spurious" is a tad unfair but after (22 years of ) trading and watching funds managers show dismal returns verus the locale, largest indecies, I think one can do a lot better than to involve oneself in funds that can be beaten on regular basis. That governments have made and given the funds managemennt industry a bona fide atmosphere, by decree, does little to hide the reality that most people simply don't take responsibility for their own financial well-being. The idea that funds management may not be scrutinised by technical analysis fits into that too.

Julian
I think that you are being more than a little unfair in grouping all fund managers together. I do not use investment companies, preferring to do my own thing, but I do have a portfolio of shares which, I must admit do much better than my attempts at trading and, I may add, with much less time and attention paid to them.

Over this holiday I decided to look at the IT section on Sharescope and the fact is- I wish I had bought some! Many have been sneaking up behind my back. One of the reasons I did not was because I read lots of posts bemoaning the performance of managers! Do you believe that Peter Lynch's record with his Magellan Fund is to be sneezed at and how about F&C's boast that anyone putting a few thousand in in 1948 would be a multimillionaire today?

Split
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Old Dec 31, 2005, 1:53pm   #4
 
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www.advfn.com charts funds
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Old Dec 31, 2005, 3:00pm   #5
Joined Feb 2005
Personally, i think Joules, was spot on. S&P managers.......rubbish! Frugi, hit on one of my ET postings.

They are up thier own ars es. That's fact.

The TV programme, 'Builders from hell'.

It should be changed!

Fund Managers From Hell!
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Old Dec 31, 2005, 3:08pm   #6
Joined Feb 2005
If you wear a t-shirt and jeans in this world, you can be exposed!

Go to the right school and wear a suit......

And you can get away with anything!

I needed a signature once...........for something i could have signed myself.

I didn't do law at uni.

It cost me 25 quid!

'Suits from hell', it's not going to happen.......is it?

Have i got a chip on my shoulder?

No!

Let's play the markets......Toss ers!
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Old Dec 31, 2005, 6:31pm   #7
Joined Nov 2001
Quote:
Originally Posted by RUDEBOY
If you wear a t-shirt and jeans in this world, you can be exposed!

Go to the right school and wear a suit......

And you can get away with anything!

I needed a signature once...........for something i could have signed myself.

I didn't do law at uni.

It cost me 25 quid!

'Suits from hell', it's not going to happen.......is it?

Have i got a chip on my shoulder?

No!

Let's play the markets......Toss ers!
Hi Rudeboy,

Sounds as if you are having a great time seeing the New Year in and db has come in for a little bit of stick, as well, I see. The main thing is not to start work on Tuesday with a headache.

A Happy and Prosperous New Year

Split
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