False and misleading. I know many ex investment bank traders (no longer bank traders due to volcker rules) who used TA and still do in their new careers as hedge fund managers.
I don't say this often about any one at the forum... You're lying !!! You're now on my ignore list. One can only take so much of your B.S. and intentional misinformation.
How much fees those hedge fund managers charge ? It is always good to get paid to gamble OP money regardless you win or loss. Obviously it is better to win because you got another 20% "profit sharing"
Anyway, Surf DOES use TA (he uses a chart, how did you figure out out putting a stop loss at 17005 on your latest Surf Report trade without looking at a chart? Did u pull that number out of your arse?). I think Surf's problem is that he can't admit to it. You need to bring that up at the next meeting with your therapist.
Why do they use charts? even if they Whoa, that was with religious fervor. Can anyone explain the purpose of charts, even with TA. As computers can provide exact pattern recognition and any other TA method instantly. Across dozens of instruments and pefectly. What other purpose can a chart serve other than to introduce subjectivity and cognitive biases into the mix?
Right peeps. Time for me to fess up. I started this thread to try and dispel the mistruths being thrown around by the chest beaters. I wanted to draw them out into the open. The facts are the large banks do use TA to help them make trading decision. Obviously they don't use it in every trading decision they make but they use it in some. I know this because a friend of mine used to be a commodity trader at Morgan Stanley. They had technical strategists who participated in the morning briefing. My friend traded the order flow so didn't require the TA but some of the traders used it. Now of course I don't expect people to believe me when I say this so I have included CAST IRON proof below that they do use TA. Please see attached below excerpts from the Lehman Brothers Foreign Exchange Training Manual. I can safely reveal this information as it was released into the public domain in the document dump made by Jennings law firm following the bankruptcy. You can simply google 'Lehman Brothers Foreign Exchange Training Manual' and there it is laid out for you. Of course I am not stupid enough to realise this wont stop the chest beaters who know FA spouting off. However it does it does provide enough information for the sane to work out who is talking BS and who isn't. GL.
Why ? Because humans are subjective and show cognitive biases. Irrationality, Greed and Fear. It s all about psychology. CM
As i said in my reply, institutions/banks did use TA as reference to make decisions in their trading, it is quite common a chart has been shown in the morning briefing ON TOP of OTHERS DATA. The main issues here is the normal ET losers will not have the access to OTHERS DATA, and they though TA is the thing that they need to trade profitable. This normally lead to the account destruction route : OVER analyse the chart and look for fictitious pattern, price actions, context, indicators and etc.
You have the "strategist TA" person in the meeting. You also have the traders at their desks at the firm managing the position via TA and via those other data/resources they have access too. Thus, its more than someone with the title "strategist technical analyst" giving his/her perspective in a decision process meeting about what to do next. In fact, more often than not the decision has already been made...its now just a "when" to do it. Not all firms are like that but many are...they are doing much more with TA than just showing charts at a meeting. As to the issue about account destruction for the retail trader...the reasons do not involve TA. In contrast, most retail traders fail at trading because of any of the following reasons: 1) No trading plan 2) Poor risk management 3) No discipline 4) Inadequate trading tools (this gets into that "other data/info/tools") 5) Poor business management of trading 6) Poor stress management 7) Trading the wrong trading instruments 8) Poor understanding of what moves the markets (Hint: Its not someone using TA). 9) Poor adjustments to new regulations and exchange rules Simply, TA if listed as the reason to failure...its at the bottom of the totem pole. By the way, there's a growing list of traders here that use charts but do not believe they are using TA. Therefore, what is TA and what is not TA...its starting to quickly get muddy and I predict more debates about TA mainly because most do not know what it is or have developed their own opinion of what constitutes "using TA". My point, there are just as many traders failing at the business of trading and they don't even use TA nor believe in it. Therefore, its logical to think that the reasons for failing at trading is not dependent upon TA.