Originally Posted by
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If technical analysis predictions drives you up the wall, then do not hear it or read it. It is as straightforward as that. The issue is not with Technical Analysis or some other method, the issue lies inside traders . Please read Market Wizards, you'll fund a bunch of successful traders using completely different egies and analysis procedures.
If you believe technical analysis is a waste of time, then why waste your time studying it. But allow me to tell you, have you any idea why you actually waste your time studying it? Because everyone is trying very hard to find the brilliant analysis methodology which will disclose to him/her where's the market likely to move next and predicated on this he/she will wither buy/cover or sell/short. This is why people who do not believe in technical analysis read specialized analysis.
A final note, blaming technical analysis is not any better than blaming the market for reductions. A fantastic trader must have the guts to blame himself and only himself for his trading losses and not anyone else or any method.
A quick illustration, I experienced a bad loss today from the gold market. I have been brief gold for about a month and that I was having a goal in your mind to pay my position. Today, I was re-assuring my analysis also found that gold has a possible support at $660 while gold was trading at $661-$663. I moved into a confusion as I am having a meeting for the whole day and will not have the ability to watch the market and at the same time, my goal remains far away. So I chose to play it safe and book my profits to protect against any end of week surprises contrary to my position. I covered the brief at the 660. 10 minutes later I told myself, if $660 is a fantastic support and the re-analysis is saying that the next two weeks will be between $660 and $680, why not reverse the position and take those $15-$20 points in my pocket? Seems like a fantastic deal with a stop loss of about $7. I initiated a long position at $660.10. I then entered my stop and limit orders left to my meeting.
Afterwards when I came back and astonishingly, I found gold down by about $13 with a non for the day under my initial goal by about $1.4. Of course my stop got hit. Can you imagine the feeling you could get. I was brief, reversed and dropped on the trade. I wasted the original short position possible profit and turned it into a loss. Two bullets in the head. Whom did I blame? the market? Technical Analysis? My mom? The meeting? Of course I blamed no one but myself. I blamed myself for being an idiot to reverse the position at the first place and going with the low probability situation to take $15-$20 after earning around $40 from my initial high likelihood short. And I blamed myself for being a different idiot for covering my brief position earlier ahead of the initially set goal. I wouldn't have blamed myself when I'd covered my position 2 or $3 over my goal, but I insured it 10 above my goal that's a lot of money wasted and worse, lost. But at the close of the day, I just blamed myself for the mistake. Of course I was wise enough to play it safe and the size of the loss was negligible when compared with the initial profit because the brief was initiated, but excellence requires discipline and minimizing fool actions. You won't have the ability to be prosperous in the markets if you keep doing the same mistake twice. There are dozens and dozens of mistakes to be done while trading the markets, if you do every one of them you will go bankrupt until you know how much mistakes you haven't made for the first time are still abandoned.
Blaming other people, both people or techniques do not bring victory. .
Thanks,
Nader