Technical analysis a pain in the ass

Written on June 16, 2009 – 12:32 am | by Kampung Boy |

Technical analysis (TA) is one of the method used to analyze and forecast the movement of stocks using complicated graph or lines. Just a simple introduction of definition of TA.

Remember those graphs that we used to draw in school during our schooling days in SPM? Those exponential and statistical graphs are considered nothing if compared to the TA graphs.

Not only the graphs but one need to know what is moving averages, relative strength index bla bla bla… so on and so forth. To be honest, i don’t really know what does those terms means.

Why technical analysis is a pain in the ass?

More often then not, the movement of the share prices are based on theories of TA and hypothesis from those complicated graphs.

A certain pattern or shape from the graphs will trigger the decisions of the so called investor using TA method. So i would love to ask those TA people, the theories of TA are so accurate, why are there still poor people in the world?

To be honest, to depend on just those data and statistics to invest in share will never work. I have not heard or come across any good TA people or websites that can really prove that TA does really work.

Not only that, if you realized in our local newspapers, there are many courses and provide TA lessons. The fees of those courses are super expensive. They wouldn’t need to give TA courses if they can make millions from just their TA knowledge right?

I for once will never used TA for any stock investment and i can confidently say that TA method for share investing will never work. Take this advice and don’t get your ass whipped for nothing!

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