goodbye technicals!

i seem to have come full circle.
first, i didn't know technicals.
second, i learnt technicals.
third, they got me profit.
fourth, i saw their limitations.
fifth, i saw their severe shortcomings.
sixth, i saw thru their pathetic record.
seventh, my infatuation with tehnicals was over!
i kept them aside
and started looking for "something else"!
--
to find that "something else"
other than fundamentals
and technicals
i thought it apt to understand
"who or what made me take up technicals?"
--
soon
i realised that
initially
the stock market started with "investing"
then came the mad race of transfer of ownership of investments
resulting in the birth of "trading"!
this was followed by mass participation in trading
and then came "speculation"
and the game changed forever!!!
--
gradually
more and more people started getting attracted
towards the "wonder business" called trading!
--
but till that time
trading was based on knowledge of business prospects.
since many couldn't judge the business prospects right
they got frustrated.
this made many smart people think hard.
some bold souls came up with the theory
that the price fluctuation could be predicted.
--
as this theory gained ground
many more started finding ways to predict.
they came out with their own methods!
many methods seemed to work (atleast for the time being)!
the thirsty mob over-estimated the abilities of these methods
ignored theor shortcomings
and over-reacted!
thus, were born
the technical indicators!
--
while the inventors of the indicators
were obviously proud of their inventions,
they got unexpected support
from suspected quarters...
the new breed of unsuccessful traders
the experts!
--
a whole generation of experts and trainers popped up!
books, articles, software and seminars....!
a whole industry got erected almost overnight!!
--
and guess who came up with solid support
to this industry?
--
you got it right
....the brokerage houses!
they spared no efforts to make you believe
that
stock market was the answer to all our financial worries
and that
technical indicators
were the sure-shot answers
"the secret"
to decode the market!
--
and who supported the brokerage houses?
you again got it right
...the banks!
--
and who supported the banks?
obviously
...the governments (who wanted to sell the prosperity story!!!)
--
as they say in china
"repeat a lie ten times and it becomes the truth"
what about the lie that was being repeated a million times!!?
that
"if you know technicals, you can predict the market movement!!!
--
this resulted into mass hypnotism
mass hysteria resulting into mad rush
to learn "enough" technical analyses!
--
every single success story
buried
ten bitter failures!
--
the mass exodus into markets
resulted into
the entry of sharks
the ones who had
mountains of cheap (low interest) money
who could make any rubbish stock zoom up
and after having collected enough
could crash it at will
by sudden flood of supply!
-
--
---
----
the saga continued!
the saga continues!!
--
today it is mcuh bigger
and stronger
and deeper rooted!
a multi-trillion industry
attracting millions of
innocent souls
bringing in pocketful of money
from their savings
to lose it all in "the pit".
--
...and the beauty is
none blames the technicals
everyone blames his level of knowledge of technicals.
such is the depth of the myth
that nobody dares to challenge the authenticity of the technicals!
--
it is one of the biggest ongoing daylight heist in the history of mankind!
by the "men-in-white"
who preach indicators
like a holy religion
beyond doubt
beyond question!
--
isn't it amusing
that
the operators ask everyone to follow technicals
and they themselves use raw brutal money power
to hunt us all!
--
the fact is
indicators are poor chaps!
they see the robber running
and tell you
(rather shriek at the top of their voice)
but themselves get tricked!
innocent traders believe the honest technicals
not knowing that even the indicators have been taken for a ride!
technicals are the last and only
footrest for ordinary masses
to have a foothold
in the market
....so nobody dare lose them!
this way
technicals
are being used
for mass genocide
in the market chambers!
--
indicators either predict wrong
or too early
or too late
or too less
and too infrequently!
--
indicators pre-dict
indicators post-dict
but none
present-dicts!!!
--
and that is the flaw
the critical
fatal flaw!!!
--
big pockets
use this flaw
to trap everyone.
they make the price fluctuate
in zig zag
knowing very well
that every small trader
has small pocket
and big fear!
big pockets know
that small traders are like sparrows
ever ready to fly away
at the gunshot of an empty cartridge!
--
i have just one simple straight question
"if technicals worked that great
and there are many technical experts in the world
who are already super Ph.D.'s in technicals
why aren't there just a handful of
buffets and goldmanns?
why are tech geniouses busy selling their knowledge
and not making money by trading?"
--
because
it is all makeover!
a big hollow artificial setup!!
a global casino!!!
where only those call the shot and win
who either have mega money
or power to influence!
those
who can drag technicals mercilessly
for miles!!!
--
so?
what is the truth?
--
the truth is
don't predict
don't post-dict
just present-dict!
--
why predict
when the result is
always
instantly
available before our eyes!
--
a bird in hand
is definitely worth
ten in the (am)bush!!!
--forget about technicals
(just learn them for curiosity)
trade, not by technicals
but by directions
of the zig-zag!
--
learn the language of zig zag movement of price
practice identifying the change in direction of price despite zig-zag
and practice identifying the continuity of direction despite zig-zag!
--
the biggest secret of the market is
it can't move from a lower point to higher
or higher to lower
without taking a direction!
if you can spot a definite direction
of the price on 1 month chart
great!
go for the swing trade.
and stay in the trade
till the direction is intact
despite the fluctuations!
if you can't spot a direction on 1 month chart
try 1 day chart!
in intraday charts
every price changes direction 0 to 2 times
giving enough opportunity to make profit!
--
forget about technicals.
train your eye
to spot the entry of the price
into a direction
wrapped in the disguise of
zig-zag!
--
believe me!
trading is much easier than you think
provided
you don't insist to complicate it!
====================

my journey without technicals can be traced thru the following recent posts

http://www.mudraa.com/singlepost.php?messid=79263
http://www.mudraa.com/singlepost.php?messid=78472
http://www.mudraa.com/singlepost.php?messid=78138
http://www.mudraa.com/singlepost.php?messid=77886
http://www.mudraa.com/singlepost.php?messid=77576
http://www.mudraa.com/singlepost.php?messid=77502
http://www.mudraa.com/singlepost.php?messid=77098
http://www.mudraa.com/singlepost.php?messid=77226
http://www.mudraa.com/singlepost.php?messid=77006
http://www.mudraa.com/singlepost.php?messid=77005
http://www.mudraa.com/singlepost.php?messid=74621
http://www.mudraa.com/singlepost.php?messid=74561
http://www.mudraa.com/singlepost.php?messid=74251
http://www.mudraa.com/singlepost.php?messid=74366
http://www.mudraa.com/singlepost.php?messid=74000
http://www.mudraa.com/singlepost.php?messid=76233