Dear Saint, thanks for your past guidance but if I may be so bold do you honestly feel that TA actually works or is it simply a calculated guess more often than not and successful traders are only ---> normal traders with exceptional luck AND not any kind of special skill?
Now that I think of it I have never heard the name of even 5 really outstanding successful traders who use TA but I have heard the names of more than 10 really outstanding investors who do not know an iota of TA.
Lets take the case of the most celebrated TA trader who ever lived ... Mr. Livermoore. Is it possible his astounding success was attributed to LUCK rather than TA, and his luck finally ran out after all resulting in bankrupcy several times. Afterall someone has to win the Euro lottery don't they and all it required is luck. Similarly is it plausible to say TA dosen't work and the handful of those who claim it does were just plain lucky the proof being there luck ran out later and they went bankrupt, why did they go bankrupt? Did they suddenly forget all their TA expertise??
On the other those who don't know TA are very successful, Buffet never even went close to bankrupcy, Graham didn't either, out very own R Jhujhunwala hasn't for over 15 years! Have they not??
P.S. I'm not personally suggesting its gobbledygook I'm only presenting another point of view expressed by OTHERS like Buffet and Lynch to name a few (from what I've read) & I'd just like to see how you or other TA counter these statements as I can't do it.
Hi Marcus,
Let us go to your last paragraph first.......I do realize that you are not trying to put anyone or any system down,but just bringing up something that these great names have previously said..................I agree with you,I am not about to do it as well.Many have walked the FA path and succeeded,many others the TA path and succeeded,many an amalgamation of the two....Many have failed doing any of the above.I am not about to get into the war of words between TA nad FA.
I must tell you though that profits can be made from the markets......that you can trade for a living and live off the markets....that the profits that can be made are limited only by the limitations of your mind........that many have done it and doing it........many that may not written books,or be written on,reclusive,introverted but doing it day after day and laughing all the way to the bank every day,every week,every month,every year.
Whether TA is superior or FA is superior,or who has greater billionaires amongst them really does not matter..........we are here to make profits,and the secret of the successful trader is Discipline and Money Management.The successful trader realises that profits and good risk/money management techniques go hand in hand.TA and FA are at best,entry points,or maybe reasons for it.............money management takes money out of the markets into your pockets!
No,my friend,these traders are not normal people with exceptional luck,they are people who do not believe in Luck.They may say that as they cannot explain the massive profits they make,while their neighbour jumps off a 20 storey building.They bring in words like Luck,Fate,Destiny,God...........but believe me,my friend,when it comes to trading their positions,at that time,none of these words matter.They have a strategy for entry, exits, profits,stops,position sizing and the immense discipline to carry out their plan again,again and all over again..............No,my friend,theirs is not exceptional Luck,theirs is Exceptional Discipline.
Many traders make some great money,and then start off into seminars,books,mentorship programs,workshops,newsletters,etc........these traders(alas!!some of them do all of the above and do not even trade themselves).........it is only this variety that becomes known,called an Expert,a Master,a Guru........that very same individual sans all of the nonsensical paraphrenalia listed above no more attains the name and fame as the people above......but he really doesn't give two hoots.He loves what he does,he loves to pull out money from the markets regularly,and he loves the fact that he can do this all so very quietly.He will have tonnes of money,but you wouldn't know him,would you?Who we know is the loud mouth who comes on TV every day...........
The question is:Why do we know so many investors,and not many traders?Frankly,I know of only traders,but that's another issue...........could it be that as in the case of investors,their investments grow,and their share holdings increase,it becomes public knowledge?Not really sure,my friend..............as far as I am concerned,we are all attracted to different things,and by different things.Even on knowing that FA is the easiest path to Trading Realization,and that TA is just a circuitous,nuisancical roundabout path to the same,I would still choose the latter,as that just is me.And I am sure that you'll find what you are comfortable with and do just that...........to each his/her own,I suppose!And it's very important to figure that one out before jumpimg into anything......
Why do many TA traders crash and burn...........the answer once again is not that they ran out of Luck.Instead it was that they practised poor money management techniques,......... you can get away with such things some of the times,but never all of the times.The market does not punish or reward,it just IS.....It does not give or take away,but when we do not obey its laws,we get thwhacked,we crash and burn......we do that to ourselves.To make 300 million in a bear phase,and give back 295 in a bull phase,he did it to himself.....I don't know his full story,but I do know that if you look into it,somewhere you'll get the answer "Poor or Nil Money Management"The TA trader who went bankrupt never forgot his TA,but his money management skills...........And,somewhere down the line,he forgot his Humility,and Life will find every possible way to punish you.
Okay Marcus......tired and late!!
All the best!
Saint
ps:nice word.....gobbledygook,another one for the vocab.Thanx!