Technical Analysis Is Stupid

This investing technique will lose you money.

Anand Chokkavelu, CFA

(TMFSimplify)

“The damning evidence

You don't have to look too far to find empirical evidence backing up the merits of fundamental analysis. The pantheon of successful investors tells the story. Ben Graham, Warren Buffett, Peter Lynch, John Templeton, Shelby Davis, Philip Fisher, George Soros, David Dreman, John Neff, and many others all soundly whooped the market using fundamental analysis.

They all have different approaches (for instance, Soros tends to focus on macroeconomics), but there isn't a technical analyst in the bunch.

In fact, I defy you to name a group of technical analysts with a long-term track record that comes anywhere close to the names above.

The more you dig, the weighter the evidence against technical analysis gets.

An October 2009 study by New Zealand's Massey University tested more than 5,000 technical analysis strategies in 49 different countries. The result? Not one strategy generated returns that aren't predicted by chance.

Let me repeat that. Not one.”

https://www.********/investing/value/2010/04/30/technical-analysis-is-stupid.aspx

That is fool dot com if it gets modded.



Technical Analysis predicts only one thing accurately and unfailingly on these boards: the practitioners and their believers are people who think the stock market is cool, but they did not study economics or finance in university, so are gullible enough to think there is some sort of magic way to evaluate business performance by drawing silly pictures.

@NZTrader does not have a degree in Economics or Finance. Nor do you.

I do. And 11 years experience on Wall Street as a front line Institutional broker who crunched my own picks and put my name and reputation on the line along with 10’s of millions of other people’s dollars they trusted my to trade with directly.

Bottom line is, NZTrader is malveillant, as he seeks to profit not from his skills of market prognostication, but by scamming foolish noobs into paying for his terrible, terrible “advice”.

I suggest if you want to do well in the markets, you get a degree in the dismal sciences like most of the guys here who are already rich did.