I agree!! I think this relates to what Harrytrader is saying about alpha and beta risk. What I am wondering is can they do it without the T/A skills by getting this through advisory services or in other ways?
YES. As has been mentioned, technical analysis is a small part of the overall trading picture. The level of proficiency needed can be had in a few hours of reading. I only use price, volume and trendlines, stuff you could understand from one magazine article. Others might spend years learning complex t/a systems, but in the end, it's all fluff. Being long term successful has NOTHING to do with being a good chart reader.
tbb123, I think you should proceed very cautiously here. The trading landscape is littered with BS artists. I think much, but not all, of so-called "Technical Analysis" is also BS. I think you will find that the people who speak of the most exotic concepts are not successful traders but course and book sellers (and their devotees). I think their purpose in life is not to simplify and explain but to complicate and confuse in order to create a market for themselves. Technical analysis is not supposed to be complicated. The most important concepts are simple and straightforward. Developing a trading method is more involved. But you are not asking for that, are you? Remember that there are Technical Analysis "experts" and there are successful traders; there is only a partial overlap. Paying someone to do your analysis work for you may sound like a good idea, but I think in this case it is like paying someone to do your exercise for you. You will probably get the worst of all possible worlds. Either do the work yourself, or let someone else manage your money for you. In the case of the latter, that's a whole other can of worms. Good luck. Regards, Thunderdog
Very good observation regarding those trying to complicate rather than simplify, I have seen this in other industries. I must ask if Technical analysis and successful trading do not have a high correlation then why "exercise"?
I wholeheartedly agree, TA is not supposed to be complicated at all. The basic concepts of all indicators are functions of price action (i.e. up & down closings, relationship of highs & lows, etc.). Fairly simple calculations of market events. But not to oversimplify. One sought after key is to ANTICIPATE market activity based on these calculations (indicators). This takes some study or coaching (choose well). In a recent thread Harry mentioned to keep things simple "higher highs and lower lows". He was talking stochastics in its root form. Simple. As to hiring a professional, I agree that there are many hustlers out there (we all get solicited I'm sure). One way to sift through that is to make sure your choice to manage your money is a member of Securities or Futures organizations that closely monitor performance. This is not always failsafe, but it cuts out a lot of small-time hustlers. Again, the problem is account size. Many want very sizable accounts to make it worth their while. As always, Much Success to All,
The natural evolution of all markets is towards "heat death" meaning that the only profits left in mature markets are to the arbs. The key to being a good traders is to constantly go where the markets are not as mature, or a mature market that has been "forgotten," and always stay a step ahead of MOST of the crowd. Another way is to play markets where you are getting paid to take on the risk noone else wants and bear it. There, the key is to be defensive and play the odds. If you understand these last two statements, you will start to understand the logic of trading, and it doesn't start with technical analysis, it ends with it (though it is where most people start.) The only way you are going to learn trading is by trial and error (notice that this requires a certain amount of courage) and making keen observations, unless you land the golden goose in the form of an honest to goodness mentor. You are not even asking the right question. No one that I have ever met is willing to part with an "edge" in an immature market, only in mature markets where the market is approacing "heat death." People that continue to tell you there are no "secrets" are trading mature markets. In fact, knowing an edge and being saavy enough or quick enough, etc is only one part of the equation! A trader brings several skills together to bear on making profits day in and day out, much of which has made it into the subconcious. Technical Analysis is a must for any trading education, but ONCE you have become a trader you will realize why, not before. Best of luck. nitro