charts and the future., page-4

Hey mate

Thanks for the reply. Much appreciated.

In regards to charts, not too sure but some did lose, and some didnt. I guess it's based on ones ability to interpret the chart and what indicators are used. It also depends on what the risk profile is of the trader. One would assume that those chart traders that lost money during the GFC, either did one or more of the below:

1) saw the reward to risk as worth taking;
2) mis interpreted their charts;
3) didnt know what they were doing;
4) was not disciplined in taking a loss


I totally agree too, there are definite macro/micro economic factors that determine where markets move.

As for those chartists that did lose money during the GFC i guess it boils down to the discipline of taking a loss when it hits your predetermined stop loss. A key fundamental to trading using charts (from my limited knowledge) is having a stop loss in place when you enter into a trade. This mitigates the risk of losing a lot of your capital.

Also lets face it, as much as we all say not to trade with any emotion, we all do from time to time...

Cheers
PK :)