http://www.cftc.gov/files/enf/01orders/enfheffernan01.pdf Another case a-la RS of Houston although RS of Houston is more famous. When I read these cases I get so pissed off I feel like finding one of these guys and kicking their ass. (no im not gonna do it, thats just how I feel, plz dont sue me, Mr. Crook). Its too bad CFTC doesn't make them go to jail.
The link doesn't seem to work. But just a question: are the sec suing the little crooks only for the sake of the investors or are they suing them for examplary and hide the HUGE CROOKS at Merry Lynch, Goldamn Sachs etc that LEGALLY AND EVEN SOMETIMES ILLEGALLY PUMP OUT the mass public money huh ?!!! Not only the crooks from Merryl do no go to jail they leave with a super bonus ... for paying their silence I suppose because I don't see any other reason that would oblige these companies to do so: they would not pay them if they were not obliged to...
Not only this industries protect high crooks but also uncompetent pseudo economist experts that would be sacked immediatly in other fields. There are competent economists in finance field but they do not promote the competent ones but the uncompetent ones ! For example Malkiel. This guy high affirms high stupidities under the name of science, I dare him say exactly the same thing in Quality Engineering Field he would be laughed at hahaha ! Of course what they don't say is that this guy manages a fund that predicates investing in stock indice only.
Interesting that Malkiel called chart reading alchemy. I don't mean to offend anyone on here, but that's exactly what it seems to me to be like. You could rightly call me ignorant (I am), but the reason I remain ignorant, beyond laziness, is that it just does come off to me as alchemy. All the hundreds of people on here arguing back and forth (with intelligence and knowledge, I'm not saying you aren't all intelligent) about the chart patterns and analysis, yet constantly complaining about how hard the market is these days, and how much work your job is. Well it seems to me that if charting were really, consistently, reliably accurate, people using it would be less prone to lose money as often as they win money. Harry's discussed this a few times with discussion of gambling and the odds of randomly being right a certain percentage of the time no matter what basis you use to bet on. (Because if a method of prediction were always wrong, 100% of the time, then in fact it would be 100% right, in a contrary way.) Chart reading and candlesticks seems to me could be useful to a point in that it will show some simple indicators like volume of interest in the item you're watching. But beyond a certain point there are things it just can't definitively tell you about the market's direction, which seems evident from the fact that people on here who do this full time and call it their work are still filled with constant ongoing uncertainties about market's direction. Mostly the strategies about taking very small short term gains seems to me to be the method that people use to compemsate for the fact that accurately predicting the market's moves an hour, half-hour, even 10 minutes, in the future seems nearly imposssible, let alone predicting tomorrow or next week. Isn't this why you say "I play what I see, not what I think"?
Of course it appears as Alchemy ! That's one of the VERY PRECISE REASON that conducts me to create my own model SINCE I DIDN'T SEE WHY TA WOULD WORK (there are two other reasons but nothing to do with the subject so I will skip them) . Then my model gave results that were very near and happily more precise than TA so I am now obliged to accept TA. Now TA is vast. Even Astrology seems now to be included in TA so when I say TA I am not saying that I accept all TAs. I accept TA like I would say I accept HUMANITY not that I accept all humans like the nazis. There are part of TA that can be rational even to common sense which is that stock market copes with forces of demand and supply so there must be some economical behaviors that must derived from that. Now that these laws are trends and fibonacci ratios are absolutly NOT AN EVIDENCE so that some use a trick: they say it is because of psychology, people like harmony of golden ratio, of natural law etc... hahaha this is kind of alchemy to say that without any proof. When a billionaire buys an art yes it could because of golden ratio, but don't tell me that he buys a stock because of harmony of prices but because he expects a profit . So there must be some other reasons behind weird rules of TA. I have found the beginning of the reasons, I have not all the explanations yet because of time but as for price it is a special law of demands and supply, the very reason why researchers havn't found them - except perhaps Gann who claimed to have found it - is that the form is SOPHISTICATED and that this law doesn't optimise the wealth of the public as expected in conventional economy. But there could be another reason for hiding the true equations. The big consequence of these equations is to be able to prove that stock market is a machine for pumping public money that's why perhaps the bankers don't want the accademic researchers to reveal them if any of them have discovered it (I'm not academoc so my claim has not the same importance). That's why I warn you one day people will awake and hear: the whole world is in bankruptcy ! Because nothing can create from the thin air it is just displacement, when all displacement of money would have been done they will tell you and it will be too late. Historically this seems to happen every 50 to 200 years, the duration of 1 generation or more so that the new one will just have time to forget for how many in the public mass really study history in details apart from superficial one huh ?
Some horoscopes are interesting to listen to, even though I don't believe what month I was born in has any real effect on my destiny. If the person writing the horoscopes is clever and sprinkles them with wisdom, you can listen to them and say "yes, that really seemed to be true today!"
This is an excerpt from an article the fundation of TA which is posted in a recent thread somewhere(make a research). I didn't read all the article just the beginning. The title is nevertheless exagerated it doesn't discuss the fundation it discuss formal statistical tests of TA patterns and not the fundation (cause) of TA in fact there is about none article about real fundation of TA since this would conduct to the equations.
Interesting that you used that word- displacement. TA is nothing more than various methods to measure displacement of price, volume, and time. Most people fail at TA because they didn't write the indicators that they use, so they have an imperfect understanding of how the indicator in question measures displacement. A person can make money of RSI, Stochastics, CCI-any of those, if they truly understand the how the indicator measure price, volume and time.