Is Technical Analysis a farce

[bunny]

Hi Bunny,

If you don't mind, can you please share your mail id. Would like to learn from you more about candlestick charting. I'm also following candlestick to arrive at my trading decisions but nowhere close to your detailed study abt candlesticks.

Also, would like to discuss my trade entries before taking them with you for your opinion as well. Hope you won;t mind helping out a newbie.

Cheers

See the only purpose of using candlesticks is because they give be info on high, low, close. The OHLC bar chart also gives the same info but candles are much friendlier. I don't base my decision on candlesticks like engulfing, doji, morning star, etc. - Its just that I have learnt how to interpret volume - something that I should have done long before as the second lesson in TA.

I have already told you in that EDUCOMP thread about finding supply hotspots. Do it and you will have good success.

 

[anuragmunjal]

thanx for d reply again bunny
u seem 2 b gifted in trading the markets, but believe me people like u are in a
minority. I have seen many a trading account go into red. My contention is that peole like u who r making money maybe doing so bcos of some innate flair for trading or bcos of ur instincts & not technical analysis.

 

[bunny]

thanx for d reply again bunny
u seem 2 b gifted in trading the markets, but believe me people like u are in a
minority. I have seen many a trading account go into red. My contention is that peole like u who r making money maybe doing so bcos of some innate flair for trading or bcos of ur instincts & not technical analysis.

Its not innate flair, I have burnt my fingers too(and my Mom's too ). Before I found this now-in-use system, I have tried every system such chart pattern, candles, technical indicators, news, etc. - but there was one problem with all - most of them worked as expected well only in the uptrend. It the downtrend - accuracy reduced.

Then I was back to basics - The concept of supply and demand. IMHO, volume and historical prices are two of the most basic and best indicators about which hardly any book discusses in detail.

 

[Capricorn]

Thnx for the reply. In any case I was expecting a lot of opposition .
As far as the question of earning money goes, I have myself been a scalper
and did decently for myself. As a matter of fact at one point my personal turnover averaged between 100-200 cr a day trading gold when commodities were introduced by Mcx.
My question still remains that why do these so called technical gurus sell their recommandations & not trade their own account.

A surgeon operates, and the pharmacy sells the medicine. That's the way business works.
Nothing suspicious about it. People do what they are best at.

 

[rajeshn2007]

My question still remains that why do these so called technical gurus sell their recommandations & not trade their own account.

Yes, you are right. The "so called analysts" claim to be giving successful recommendations giving profits of 1/2/5 lakhs, but ask for subscription of 2000rs. That shows !

http://www.traderji.com/general-trading-investing-chat/22105-who-worst.html

 

[Smart_trade]

This is a age old debate...we have to understand that trading involves risk...some people find risk taking acceptable...some want income without risk...giving technical analysis calls is a risk free income. I find nothing wrong in that risk taking is everybod's personal choice.

Analysts come on TV for popularity and getting clientale for their services...they also sell data...and if you just do the back of the envelop calculations,it is a very lucrative business if you can do it...charge Rs 2000 per month ( least figure I have taken) and if you have 3000 subscribers in the country,it makes a kitty of Rs 60 Lacs per month...over 7 Cr per annum...without any risk...I have friends who have subscribed to a service which gives support and resistance levels not because it is good...but it is cheap...only Rs 1000 p.a...so" laga letein hai...kya fark padta hai ??"

As Capricorn rightly put it,a surgeon operates and pharmacy sells medicines...so far so good, but in this industry pharmacy sells fake medicines (by way of motivated and false calls),performs operations without any knowledge or authority ( by way of trading on clients accounts) and publishes books and give seminars on " a weekend course to do Brain surgery" (by way of subscribe to our service and trade the systems by working for only 5 minutes in a day) and that is the dis-service to investors. I have known research guys from some broking house...who get bribes to write good reports about some companies....very bad practice...

Smart_trade

 

[Smart_trade]

Technical Analysis is no black magic...or woo-doo magic...it is a decision support system which tells you where to enter in a trade,where to take profits if trade goes in our favour and where to get out if the trade goes against us....

Smart_trade

 

[Capricorn]

As Capricorn rightly put it,a surgeon operates and pharmacy sells medicines...so far so good, but in this industry pharmacy sells fake medicines (by way of motivated and false calls),performs operations without any knowledge or authority ( by way of trading on clients accounts) and publishes books and give seminars on " a weekend course to do Brain surgery" (by way of subscribe to our service and trade the systems by working for only 5 minutes in a day) and that is the dis-service to investors. I have known research guys from some broking house...who get bribes to write good reports about some companies....very bad practice...

Smart_trade

Ya mate, as long as suckers exist so will such black sheep. It happens in all professions.:lol:

 

[ccmoradia]

I've asked Rajat K bose a question similar to yours. he replied me that whatever you use fundamentals or technicals but it will contain some kind of risks, it may disturb your sleep at the night so better to sell ideas rather than to trade in the market.
regards
cHiraG

 

[anuragmunjal]

thnx for the replys guys
smart trade sums it up very correctly that these guys are risk averse,they are more comfortable selling recommandations rather than trade their own account. but..... the basic question remains that why does a person become afraid of takin risks when he is himself harping that the risk to reward is in his favour??? the only reason I can think of is that basically he knows that the risk 2 reward is not in his favour,he knows that in a bullish market, since all systems work, his system would work too, but when the market is difficult it would loose much more.

also I have seen analysts give a 40-50 rs stop loss in a stock worth 700-800 rs. what use it is of to short term traders is beyond my intellect to comprehend.