What Do Hedge Funds Think of Technical Analysis?

Discussion in 'Technical Analysis' started by SunTrader, Jan 29, 2023.

  1. I started by joining a community and following a mentor. If you are only reading books on your own I am sure it is very difficult to make progress. Also, by posting your trades the mentor can point to the mistakes you made... So if you are interested in indices, find a community which is focused solely on this area. In my opinion by far the better option than being "on your own" and only following this forum.
     
    #201     Feb 5, 2023
    JonLivingston likes this.
  2. Well not neccessary. If he is talking about notorious investment banking, the job can be very exhausting. The very much desired exit for investment bankers are hedge funds and private equity...
     
    #202     Feb 5, 2023
  3. taowave

    taowave

    Im talking trading and from my own experience...

    Guys on trading desks get paid a ton without a ton of talent



     
    #203     Feb 5, 2023
    Tradess0610 likes this.
  4. Any mentor in the room ping me please

    I can offer so many questions you'll want to run far away into deep space :D
     
    #204     Feb 5, 2023
    taowave likes this.
  5. easymon1

    easymon1

    Assuming that to be true, why would that be the case?
    What are the criteria for getting that position?
     
    #205     Feb 5, 2023
  6. Better breakdown is 3 years on the sell side (rates & fx focus) and 7 years on the buy side (with a focus on active risk).

    I think the benefit of working on the sell side is that it’s a much better place to learn about markets versus school or retail experience.

    Prior to my professional career, I traded stocks, options, and fx as a student and also believed in the gibberish about technical analysis, that fundamentals were useless, that the pros are using better charts, etc. It wasn’t until I sat on the trading floor that I recognized the full degree of my dunning-kruger overconfidence.

    I don’t think working on the sell side, or another buy side shop, is a requirement for being a very successful portfolio manager or analyst.

    However, it is extremely hard to succeed without that experience because you simply do not know how good your competition is. It’s kind of like trying to train for a marathon (to place #1) and think you’re fast because you’re hitting 8:30mi which is very fast compared to most of your sedentary friends. (You have no idea how fast top marathon runners are and the competition it takes to place even in the top 10%).

    Retail traders like @SunTrader legitimately believe that the “pros” and “old hand”/“wise” traders are looking at charts and fooling with retail etc. In reality, the pros are investing significant capital in technology, have large research budgets and teams, and (lol) are not relying on technical analysis to make trading decisions.
     
    #206     Feb 5, 2023
    Zwaen likes this.
  7. Sales-traders yes, risk takers it depends on the product. Assuming a risk taker has survived for 5+ years, they’ve probably earned their salt.
     
    #207     Feb 5, 2023
  8. taowave

    taowave

    Sales traders???

    Those are the luckiest mofos on the planet....




     
    #208     Feb 5, 2023
  9. Gotcha. Thanks for that.

    Well for me I believe it's too late as I'm no longer <30 years old and if my reading about how things work in the industry, one has to start young. So from my perspective I think I'll have to try and leverage what I know to do well and sort of mould it with whatever this space offers (and I know there's endless possibilities to learn, and that's why I'm here).
     
    #209     Feb 6, 2023
    longandshort likes this.
  10. themickey

    themickey

    Institutional buy side traders, their job is buying only?
    And sell side traders, they only sell?
     
    #210     Feb 6, 2023