New TA/Charting, page-6272

Nice post- I like the last three points that apply to both traders and investors:

• Can make a lot of money if they are good at what they do.
• Can lose a lot of money if they are not good at what they do.
• Will have good and bad periods. We do not control the market.

However, I really don't see why using TA and charts can't be used in some form by both - I don't see why it is seen as conflicting or complicated. For example, you might form a macro based thesis like EV and the battery space, do some research and FA on prospective companies to invest in, and then narrow that list further using TA to compare the relative strength of several companies against each other, the sector and the market. And/or to help with timing entries, exits, managing risk - basically using TA to set some lines in the sand or as a yardstick to plan ahead - if this happens, I'll do that. This is very different to crystal balling where price will be - it's simply setting some performance parameters that help better prepare for different potential scenarios so you either don't miss out on an opportunity, or avoid getting stuck when you are wrong. I mean, you don't have to do this if it doesn't suit you, so why is this so controversial to some people?

Not directed at you YLJ but just feel like a rant!

I also don't understand why there's so many arrogant plonkers who understand zip about TA - and probably never taken their hands off their John Thomas long enough to bother looking in to it - make the journey to a chart thread just to rubbish it with a broad brush and try to ram down our throats why their particular form of investing is superior and THE ONLY WAY. How tedious. Man, if the TA vs FA argument on this thread hadn't already jumped the shark, then the final confirmation has to be when Warren Buffet starts getting rolled out and 9/11 gets hurled back in response! Wow - LOL.

Charts simply show the actual prices and the volume of trading that occurred. You don't have to "believe" in charts- they represent hard facts. What you don't have to believe in is someone's interpretation of those facts. Predictions can be fun, but there's a whole lot more to TA and charting, and there aren't any accomplished chartists anywhere who say "price will definately do this" - a dead giveaway of a newbie chartist (or a fraud!) who thinks they have found some sort of magic indicator or something. No, chart ninja's use phrases like "price looks like it wants to...", "price is potentially setting up for a...", or "price and volume action over the last week suggests bullish or bearish trading" etc etc. Because they know that TA based predictions are based on their interpretation of the trading leading up to the current point and probabilities, so even if there's something they spot that they consider really obvious and screaming at them there is still a chance something different happens.