Does technical analysis work or not?

Does technical analysis work in your opinion?


  • Total voters
    55

babyjake1961

Well-known member
390 12
For your iron-clad rock-solid evidence, kindly check the free "educational" materials they offer to lure punters into active trading (and losing to them).
 

tomorton

Legendary member
7,107 920
For your iron-clad rock-solid evidence, kindly check the free "educational" materials they offer to lure punters into active trading (and losing to them).

The fact that these firms promote a TA approach to trading isn't evidence that TA doesn't work, just evidence that they want more customers and they're using the most effective means to bring them in. So, if TA is the most effective means to bring new blood into trading, maybe that's evidence that TA works and that's why its so popular. Your evidence therefore only shows that nasty people use TA. Presumably, if the scam brokers are going to rig the game and scam you out of money, it doesn't matter to them whether TA works or not, you're never going to be able to make profits and withdraw them.

So, again, where's your evidence that TA doesn't work?
 

babyjake1961

Well-known member
390 12
The bucket shops don't need to rig the game with odds already heavily in their favour in the long run. The game is an entirely random one while technical analysis creates an illusion it's not. Just because there were some patterns in the past doesn't mean they will keep repeating. More than often they won't, and that's how the punters' money will be transferred to those on their other side of their trades - the bucket shops, that is.
 

tomorton

Legendary member
7,107 920
The bucket shops don't need to rig the game with odds already heavily in their favour in the long run. The game is an entirely random one while technical analysis creates an illusion it's not. Just because there were some patterns in the past doesn't mean they will keep repeating. More than often they won't, and that's how the punters' money will be transferred to those on their other side of their trades - the bucket shops, that is.

You're obsessed with bucket shops.

Whoever they are, they are not the reason most new traders wipe out quickly. Nor is TA. Its because they never learn to trade effectively. Most are trying to self-teach and have lazy, greedy, impulsive and impatient ideas about how much wealth they will soon have. Most are not using TA in any rational or effective way. Whose fault is it if new traders don't bother to learn how to trade and go ahead and abuse what systems are available.

You're letting the true culprits off the hook - it is the new traders who give trading a bad profile, not salesmen or TA.
 

NVP

Legendary member
36,148 1,760
like everything else in trading...........sometimes it does work and sometimes it doesnt .....
 
Likes: cantagril

NVP

Legendary member
36,148 1,760
The bucket shops don't need to rig the game with odds already heavily in their favour in the long run. The game is an entirely random one while technical analysis creates an illusion it's not. Just because there were some patterns in the past doesn't mean they will keep repeating. More than often they won't, and that's how the punters' money will be transferred to those on their other side of their trades - the bucket shops, that is.
most "traders" cant trade their way out of a paper bag............they dont even need bucket shops to help them do it .....:)
 

babyjake1961

Well-known member
390 12
Entire regulated exchanges act as bucket shops. Take IG -owned Nadex for one.

CFTC Nadex Review: Two Market Makers Account for 99% of Flow (https://www.financemagnates.com/ins...dex-review-two-market-makers-account-99-flow/)

"Market Risk Management and Group One Futures Trading LLC took the other side of the transaction in 99 percent of all cases. MRM was on one side of approximately 70 percent of trades, and Group One 29 percent."

Market Risk Management Inc operates as a subsidiary of IG Group Holdings plc (https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=49446444)
 

tomorton

Legendary member
7,107 920
The same goes for Forex brokers and pretty much any retail trading setup available to punters.

I guess it ain't going too well for you?

As I've said elsewhere I've had a pleasant end to 2018 trading, with a simple new strategy that has brought me in just over 5% in 6 days for not much work. And this was through spreadbetting. I guess a lot of people would call that a bucket shop. I don't mind. Taking a break from trading now until January but quietly confident.

What's your plan?
 

babyjake1961

Well-known member
390 12
If you think you’ll keep making that with any degree of consistency, you’re plain fooling yourself, or else you would end up with all the money in the world.
 

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