Can learning technical analysis help you earn money?

#1
If you learn technical analysis in stock market, can that help you earn money?
I know there is nothing sure shot in stock market but what can one do to increase chances of earning well in stock market?
 

stoch

Active Member
#3
If you learn technical analysis in stock market, can that help you earn money?
I know there is nothing sure shot in stock market but what can one do to increase chances of earning well in stock market?
Are you going to sell educational courses, provide signals or trade yourself? First two are risk-free, except of course the risk of spoiling your own reputation, last option is most difficult yet most rewarding. I've chosen third way, I trade indexes with Hotforex through CFD contracts. Try demo with your technical analysis maybe your results will be successive enough to move on real account
 
#4
It's just about impossible to come up with a definitive answer for this simple question. I'm a purely technical trader and speaking from my personal perspective, I trade solely off the information in a daily bar chart. I don't trade off news events at all. At the same time I trade very carefully, and I only trade the markets when certain situations arise.

Luckily i've been consistently profitable. While my trading rules have evolved over time, the core techniques I use to analyse, enter and exit trades have remained the same and they're entirely based on technical analysis. Therefore, I can therefore say that technical analysis techniques have proven to be profitable in my experience.
 

arora

Well-Known Member
#5
It's just about impossible to come up with a definitive answer for this simple question. I'm a purely technical trader and speaking from my personal perspective, I trade solely off the information in a daily bar chart. I don't trade off news events at all. At the same time I trade very carefully, and I only trade the markets when certain situations arise.

Luckily i've been consistently profitable. While my trading rules have evolved over time, the core techniques I use to analyse, enter and exit trades have remained the same and they're entirely based on technical analysis. Therefore, I can therefore say that technical analysis techniques have proven to be profitable in my experience.

Agree with above statement. i am full time intraday technical trader. Even i don't understand news, i just understand charts. So yes, you can earn money from technical analysis. Lot of other factors are also involved to make from market. PSYCHOLOGY. Trading is 5% technical system.. and 95% psychology. If i tell my system to somebody still he may or may not be able to make money as his mind is not adjusted as per system. :)
 
#6
Hi Guys...amazing thread to which I would want to add some of my thoughts..from my personal experience I feel technical analysis works really well for a very simple reason that's called "herd mentality". If I have to make a buy and sell decision for an intra day trade, fundamental analysis is of no use to me!

I think technical analysis does works because:
1)Investors follow a notion that history repeats itself
2)When people have same expectations regarding a stock price movement,the security moves in the favoured direction and targets are met (most of the times)
3)Breakouts/breakdowns are confirmed by a surge in the volumes

not to forget, if you stay cautious of major events that can cause volatility in your traded stocks, technical analysis can be more fruitful for you.

Happy Trading Friends :)
 

lemondew

Well-Known Member
#7
from obove i guess you are using technical analysis to understand psychology of investors.
Hi Guys...amazing thread to which I would want to add some of my thoughts..from my personal experience I feel technical analysis works really well for a very simple reason that's called "herd mentality". If I have to make a buy and sell decision for an intra day trade, fundamental analysis is of no use to me!

I think technical analysis does works because:
1)Investors follow a notion that history repeats itself
2)When people have same expectations regarding a stock price movement,the security moves in the favoured direction and targets are met (most of the times)
3)Breakouts/breakdowns are confirmed by a surge in the volumes

not to forget, if you stay cautious of major events that can cause volatility in your traded stocks, technical analysis can be more fruitful for you.

Happy Trading Friends :)
 
#8
hi rajkalra20,
i also was the newbie in stockmkt in 2009 when i entered in mkt, i didnt know the abc of TA, but now i hv learn very small from TA and earning a good profits in cash mkt, as i m now a swing as well as positional trader, and earning good profits only and only by the help of TA , studying only charts.... my each and every trade only based on TA and study of charts and i dont follow any recommendation and news, purely based on the TA on EOD.
only the TA helps u to find when to enter in a stock and when to exit.
i m still learning TA and finding new tics(techniques) and tactics and implementing them and earning handsome gains.....
concentration and confidence very imp in trading , if u lose u lost the trade.........
 
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#9
If you learn technical analysis in stock market, can that help you earn money?
I know there is nothing sure shot in stock market but what can one do to increase chances of earning well in stock market?
Hi Raj,

There is no one way to success in stock markets. Technical or fundamental analysis are just two ways. I have experienced both. I started with technical analysis in 2006 and shifted to fundamental analysis after reading the book: The Intelligent Investor by Benjamin Graham.

Trading approaches are more personality driven. I felt home with fundamental analysis and never looked back at technical analysis. I have written about my experience here: Why I left technical analysis and never returned to it!

There are people who use only fundamental analysis, other use only technical analysis and some use mix of both. At end of the day, you would have to choose the approach which is suitable to you.

Regards,
Vijay
 

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