hmm..before i start ranting out let me instill a few thoughts in you. Yeah yeah, you know what Techinical Analysis (TA) and are most welcome to decorate this page with your comments.
Making money in the markets using technical analysis is deceptively difficult. We are attempting to find clues that will indicate where the market is going in the future so we can get in now and ride it to the expected destination in the future. To develop a strategy that will help us determine where the market will be in the future, we need to first ask: “What moves the markets?” The answer is simple: · People move the market — LOTS of people! The irony is that even though the masses move the market, approximately 5% of the people make 95% of the money! So market moves are the basis of mass psychology, but the masses lose and the minority wins. In fact, though the masses move the market, they move it in such a way as to hurt themselves—to hurt the most people in the worst way possible! There is no “devil” behind the system causing this to happen. There are two factors that cause this inequity of redistribution. The first is simply a natural law of distribution since the market is a zero sum game (minus commissions, fees, etc.). The other involves the psychological laws we learn to function with as individuals in the everyday world, but which are counter-intuitive to the laws of the market. Most people think they are the exception to the rule, and that they will be among the 5% that make money. Isn’t that a funny statement? The MAJORITY of people truly feel they are in the MINORITY!
Making money in the markets using technical analysis is deceptively difficult. We are attempting to find clues that will indicate where the market is going in the future so we can get in now and ride it to the expected destination in the future. To develop a strategy that will help us determine where the market will be in the future, we need to first ask: “What moves the markets?” The answer is simple: · People move the market — LOTS of people! The irony is that even though the masses move the market, approximately 5% of the people make 95% of the money! So market moves are the basis of mass psychology, but the masses lose and the minority wins. In fact, though the masses move the market, they move it in such a way as to hurt themselves—to hurt the most people in the worst way possible! There is no “devil” behind the system causing this to happen. There are two factors that cause this inequity of redistribution. The first is simply a natural law of distribution since the market is a zero sum game (minus commissions, fees, etc.). The other involves the psychological laws we learn to function with as individuals in the everyday world, but which are counter-intuitive to the laws of the market. Most people think they are the exception to the rule, and that they will be among the 5% that make money. Isn’t that a funny statement? The MAJORITY of people truly feel they are in the MINORITY!
