Comments on: Investment Approaches – technical vs. fundamental analysis http://tomthemoneyman.wordpress.com/2008/04/26/investment-approaches-technical-vs-fundamental-analysis/ Just another WordPress.com weblog Mon, 30 Jun 2008 14:13:33 +0000 http://wordpress.com/ hourly 1 By: adfgvx http://tomthemoneyman.wordpress.com/2008/04/26/investment-approaches-technical-vs-fundamental-analysis/#comment-3 adfgvx Mon, 28 Apr 2008 01:16:14 +0000 http://tomthemoneyman.wordpress.com/?p=14#comment-3 I've tested a lot of the methods used by proponents of technical analysis and chart reading. It suffices to say that none of them produced results superior to random trading. I've written a short post about this on my blog: http://margincall.wordpress.com/2008/04/27/the-dark-ages-of-trading/ In short, I think traders these days live in the dark ages, and they use abstruse chart patterns and pseudoscientific indicators in order to create the illusion of understanding and control. It's very similar to the way ancient humans turned to astrology to explain the events of their lives. Speculators would be better off if they just admitted to themselves that, while not totally arbitrary, stock prices are highly random and canned chart patterns and pseudo-scientific technical indicators have no predictive significance. I’ve tested a lot of the methods used by proponents of technical analysis and chart reading. It suffices to say that none of them produced results superior to random trading. I’ve written a short post about this on my blog:

http://margincall.wordpress.com/2008/04/27/the-dark-ages-of-trading/

In short, I think traders these days live in the dark ages, and they use abstruse chart patterns and pseudoscientific indicators in order to create the illusion of understanding and control. It’s very similar to the way ancient humans turned to astrology to explain the events of their lives.

Speculators would be better off if they just admitted to themselves that, while not totally arbitrary, stock prices are highly random and canned chart patterns and pseudo-scientific technical indicators have no predictive significance.

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