27/02/2018
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USD given a boost after Powell testimony. As im writing this post, he is having his Q&A now. Guess all directional trends in price needs a catalyst.
I just want to put my observations out there. Irregardless of the possibility of offending anyone, or the possibility of stirring up negative comments.
Have you wondered why retail forex community is dominated by Technical analysis? 99% of the strategies, discussions, talks I see here are all about TA.
Coincidently, have you heard of the notion that 90% of retail traders lose money? Coincident? I don't think so. Look at big boys trading in wall street. What do they use? TA? Heck no! Just watch an episode of Bloomberg and see how much they debate on fundamentals, economics, politics. Coincidence? I don't think so.
Take every recommendation with a grain of salt. Be critical of what you learn. Have you ever questioned the reliability of the TA that you use? Are you certain you backtested it? Or are your decisions based more on gut feeling?
People are out to make money, irregardless of whose money it is. IMO it is not coincidence that FX or CFD brokers teach TA to retail traders. Firstly, it is a popular topic with retail traders compared to traditional education such as economics and politics, it is also easier to teach and more fun to learn. Contrast that with traditional education. Recall during your university days taking economics 101. How you felt like sleeping? Yup, these "brokers" dont want to bore their customers! It is a marketing gimmick! Secondly, TA and short-term trading are synonymous. "Brokers" will want you to place more trades and generate more comissions for them. Now back to my Bloomberg example. How do Bloomberg make money? One avenue is through selling of their famous Bloomberg platform to institutional traders. Their customers are the PROFESSIONAL traders. And the content they generate must be appealing to these professionals, or they lose their customers. Is it a coincidence that there is almost zero reference to TA on Bloomberg? Think about it. The difference in the content which retail brokers offers vs what professional financial service providers offers is a very big clue as to what is more "useful".
Next, Im pretty sure some of you out there knows someone who has success with TA. Or maybe youre personally successfully with TA. Let me introduce you to the concept of infinite money theorem. With enough monkeys typing randomly on the typewriter, eventually we will have one who will produce the works of William Shakespear.
What Im getting at is that given enough people trying, eventually we will have a few who will make it. It is all a function of probability! On the flip side. Look at institutions. What type of analysis do most institutions use? What is the probability that most of them uses similar forms of analysis? This is no coincidence.
I am so sick and tired of getting into debates with "TA loyalists". Wake up retail traders! Open your mind! You are being fed junk by people who just want your money!
---
USD given a boost after Powell testimony. As im writing this post, he is having his Q&A now. Guess all directional trends in price needs a catalyst.
I just want to put my observations out there. Irregardless of the possibility of offending anyone, or the possibility of stirring up negative comments.
Have you wondered why retail forex community is dominated by Technical analysis? 99% of the strategies, discussions, talks I see here are all about TA.
Coincidently, have you heard of the notion that 90% of retail traders lose money? Coincident? I don't think so. Look at big boys trading in wall street. What do they use? TA? Heck no! Just watch an episode of Bloomberg and see how much they debate on fundamentals, economics, politics. Coincidence? I don't think so.
Take every recommendation with a grain of salt. Be critical of what you learn. Have you ever questioned the reliability of the TA that you use? Are you certain you backtested it? Or are your decisions based more on gut feeling?
People are out to make money, irregardless of whose money it is. IMO it is not coincidence that FX or CFD brokers teach TA to retail traders. Firstly, it is a popular topic with retail traders compared to traditional education such as economics and politics, it is also easier to teach and more fun to learn. Contrast that with traditional education. Recall during your university days taking economics 101. How you felt like sleeping? Yup, these "brokers" dont want to bore their customers! It is a marketing gimmick! Secondly, TA and short-term trading are synonymous. "Brokers" will want you to place more trades and generate more comissions for them. Now back to my Bloomberg example. How do Bloomberg make money? One avenue is through selling of their famous Bloomberg platform to institutional traders. Their customers are the PROFESSIONAL traders. And the content they generate must be appealing to these professionals, or they lose their customers. Is it a coincidence that there is almost zero reference to TA on Bloomberg? Think about it. The difference in the content which retail brokers offers vs what professional financial service providers offers is a very big clue as to what is more "useful".
Next, Im pretty sure some of you out there knows someone who has success with TA. Or maybe youre personally successfully with TA. Let me introduce you to the concept of infinite money theorem. With enough monkeys typing randomly on the typewriter, eventually we will have one who will produce the works of William Shakespear.
What Im getting at is that given enough people trying, eventually we will have a few who will make it. It is all a function of probability! On the flip side. Look at institutions. What type of analysis do most institutions use? What is the probability that most of them uses similar forms of analysis? This is no coincidence.
I am so sick and tired of getting into debates with "TA loyalists". Wake up retail traders! Open your mind! You are being fed junk by people who just want your money!
I look for value wherever it can be found
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