Although there are many types of trading, I am hearing more questions about technical trading than other types. I think the fascination comes from the faith that certain patterns will lead to key insights on price fluctuations.
Although I use on fundamental analysis, my personal filter of reality, and third party help I am learning about technical trading. So I’ll do my best to shed a sliver (and I do mean a sliver) on the basics. But in my opinion, technical trading seems to be associated with swing trading and momentum trading. Some people make money doing it. But most of the money is being made by online “gurus” trying to sell their “systems.”
Most of the scams I have seen involve looking at candlestick charts for telltale signs of upcoming spikes and dips. But this suggests that it involves a lot of time staring at live charts looking for patterns.
I am reminded of many billionaires’ advice: It’s not about timing the market; it’s about time in the market. Doing the fundamental analysis and putting in the dark years.
So there are no shortcuts to amassing wealth as an investor. Sorry to poo-poo technical trading. Paying attention to things like trend lines and moving averages are part of my overall process, but it’s more about market analysis and having a filter that does a good job predicting.
As Always…
Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)
But you should spend less than you earn, invest the difference, and stay out of debt!
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