I am a proud user of a "baloney strategy"!
:D
Or that article is hard proof that I am one self-deceptive but lucky SOB.
While the author formerly known as Prince mentions how technical and fundamental analysts can be biased and therefor make mistakes, he does not mention how writers can be biased.
"Technical analysis was developed for short-term traders." He is just not a short term trader.
He conflicts himself by saying... "There is little value in assisting investment decisions, if any, for institutional money managers." ... after saying ... "I do admit that there is useful information to be gleaned from charts such as the number of buyers and sellers or the volume of a stock. Screens of stocks that are near their 52-week lows or 52-week highs can be useful for finding stocks that are good values or overvalued. However, the Prince does not buy into technical stock trading or the day trading that many technical traders partake in."
He is just not a short term trader.
"There are many intelligent people online who prescribe to technical trading strategies... many of them may even make quite a bit of money. Yet, ultimately those that do perform well on a “risk adjusted basis” are the exception to the rule."
OK... so does it follow that those who perform well, using other than TA, are the norm? Not really. Successes and good performers are always the exception to the rule. That is why success is rewarded.
He is trying to establish credibility by trying to discredit an alternate system. I think I saw that technique used in the debates last night. But if he went around bashing the accepted methods that win institutions clients, the same methods that also only perform successfully as the exception, what kind of business would he have?
Of course, what institutional clients wouldn't want to know about the companies they are investing in? But who ever said that TA should be used singularly anyway? TA and FA should be used together. There are very many reasons to use TA as part of your trading strategy.
Don't you make more money buying when a stock is trending up?
Don't you make more money buying at the support of uptrends?
Don't you keep more profits selling at technical tops?
Don't you keep more profits selling when a stock is leaving overbought?
I know I do.
If you're not living on the edge, your taking up too much space.
