This book was written by one of the most successful investment managers in Moscow today Dmitry Khotimsky. The author attempts to break down the complexity of an investment world into layman terms for the general public, especially in times of an economic slump. Overall I found the book to be a very interesting read (I believe it is available in English too). The following is an extract from the book about application of technical analysis when deciding to invest or not to invest into a stock. So this would directly apply mostly to position traders basing their opinion on technicals. Translated by moi "If there is in this world total nonsense, then TA is the best example of it. You are shown thousands of graphs and charts. In those they observe some sort of Japanese candles, animal figures and so on - the list is huge. On the "basis" of these analysis they decide - have to buy! Or sell. Remember this one thing: any technical funds and actually all people, that adhere to this "religion", always lose their money. All of it. Ta is anti-science. To be precise, it's a marketing tool to attract naive fools into the enticing world of investments. It's clear, that to look at pretty pictures, is easier than to forecast actual profitability of companies. But it's not worth it to succumb to temptation in an attempt to make your life easier. This is 100% loss of capital." D. Khotimsky
It has not been difficult to be successful as an investment manager in Russia. Buying companies at a p/e of 3 is not difficult. Read Bill Browder's book for more information.
Jim Rogers: "technicians making a living selling ideas; I have never personally met a rich technician before who made his fortune from trading." Marty Schwartz: "I always laugh at people who say, I’ve never met a rich technician. I love that! It is such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician.” Both from the same book: Market Wizards. Nobody can deny both these gentlemen have made money using their approach. Such is trading. Enough said. Regards, Monoid.
Lots of people knock TA. Not hard to imagine considering most don't really understand what they should nor use the tools correctly. (Even the TA pioneer Joe Granville, got far off track with his reliance upon OBV.) TA, properly understood and used, offers a very high probability of success with perhaps the best risk control of your capital. That is fact.