Technical Analysis - is it more than just a Self fulfilling prophecy?

Discussion in 'Technical Analysis' started by Atikon, Apr 10, 2020.

  1. easymon1

    easymon1

    concur.
    proper numerical digits can be actionable in the extreme.

    Congress moves to end its crisis over insider trading
    TheHill.com
     
    #11     Apr 10, 2020
  2. Atikon

    Atikon

    There are over 40 000 Securities traded in the World (not counting OTC). There will be opportunity and market corrections to fundamentals each day. You can inflate stock prices/postpone the correction with herd behaviour BUT we have rules and regulations when it comes to Accounting. You can only bend those so far and they will mean revert. If you inflate your Quarter/Halfyear/Year by X, you will have to pay for it in the near future(1 year most of the time). That's why you see stocks shooting up or going down significantly when earnings are released. If you are a fan of HFTraders/Quantsm they trade those too
     
    #12     Apr 11, 2020
  3. SunTrader

    SunTrader

    HFT/Quants trade price movement. By their very nature crunching the numbers so fast funnymentals mean just about nothing to them. Other than "watching"/preparing/anticipating news time releases.

    Same for daytrading. The funnys only help longer term supplementing TA.
     
    #13     Apr 11, 2020
  4. Fx-Game

    Fx-Game

    What is interesting -
    If right TA analysis would be correct most of the time, the market could not work:

    Each and everyone would trade the same way...
    At least the big players & fonds.

    That's why sentiment, news & all kinds of fundamentals are important.
     
    #14     Apr 11, 2020
  5. Peter8519

    Peter8519

    Tribute to the late Kenny Rogers.
    Trading such a difficult skill to acquire.



    TA is just another tool. Using it effectively is another skill altogether.
     
    #15     Apr 11, 2020
  6. orbit23

    orbit23

    I don't trade nor truly understand options, but i do know they are a great way to lose money.

    Particularly selling options, where the risk is unlimited. This is how people go out of business.

    Anyways i hope for your own sake, that you actually know what you are doing(not think). Selling options + Betting on fundamentals in a bubble... I could imagine things going wrong.
     
    #16     Apr 11, 2020
  7. kmiklas

    kmiklas

    A friend of a friend did very well with TA. Made millions and bought a ranch in Colorado.
     
    #17     Apr 11, 2020
    lovethetrade and orbit23 like this.
  8. estern

    estern

    anyone available that can give me a few pointers in options trading?
     
    #18     Apr 11, 2020
  9. kmiklas

    kmiklas

    Methinks that the absolute shortest timeframe for fundamentals is one month; many institutional funds balance once per month on fundies.

    This overlaps with shorter time horizon styles, like swing, week, or momentum trading.
     
    #19     Apr 11, 2020
  10. trdes

    trdes


    Well I day trade and to be clear that is what I am talking about. So, if you're talking about anything other than day trading I will not challenge you. If you're talking about day trading everything I said stands 100% factually correct, as you cannot consistently use fundamentals to day trade and use it as your primary source of income. Even in your own words you're saying sometimes in can take 1 year. One year may be a close future to someone who doesn't day trade and is already financially set. One year is a lifetime to a daytrader who is using it as his primary income source.
     
    #20     Apr 11, 2020
    kmiklas and Atikon like this.