Is Technical Analysis Trading The Same Thing As Gambling?
Speaking from personal experience with Technical Analysis I really lost hope in it. I don’t know how that is even really realistic. Personally I see the market chart as an indication of the whales emotions. I don’t believe in its entirety being based on a pattern. These feelings do come sometimes, especially when I analyze a market and it was supposed to respect or follow a market patter or act based on a price action indicator but it goes contrary.
It gets frustrating and you start doubting everything you have learnt or researched. Some traders claim that Technical Analysis works for them and they totally understand it. They claim most times Technical Analysis gets misunderstood by people, and these people are naive investors who always think it should tell them the future . But I think that’s what it’s supposed to do, it’s supposed to create a pattern that shows the possible direction the market has to follow.
After months and months of learning Technical Analysis and implementing it into trading, I came to the realization that while trading is not for everybody, trading is also related to gambling. Gambling is a risk because anything can happen so is trading. I see a lot of similarities in both parties. Just like gambling, when you are trading you have two options, buy or sell, if you buy and it sells, you lose, if you sell and it buys you lose.
If people don’t expect Technical Analysis to show them the future or direction of the market, then why use it? This is the reason I prefer fundamental trading. Because instead of trying to predict the market, you just follow the trend of the market. When a bullish news come up, you follow the bullish trend, when a bearish news comes up, you follow the bearish trend.
In all I will still stick to my usual holding of crypto and staking. It’s best way to earn so far and haven’t given me reason to think otherwise.
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After studying TA years before cryptocurrency was even invented, I concluded that it is mostly superstition. The market can always do something else then your analysis with charts and lines.
There is a lot of people in this claming they make money with TA, but 99% or more lie. They show you winning trades, but never show you all the loses. To sell you a product or something. Its a scam unfortunately.
Even I discard TA as BS, I made an exception recently:
This death cross indicate that we are in bear market now. It can last for years if true.
https://www.lassecash.com/bearmarket/@lasseehlers/bear-market
But I dont care, I believe that LasseCash, hex, pulse will prevail the bear market (which I been saying for a while now), as we are building solid great stuff.
DYOR
/Lasse
Does technical analysis of prices create anything of value? If it is not creating value, then it probably isn't a worthwhile pursuit.
Some analysis of financial information creates value. Some does not. It is possible that some black hat analysis is designed to destroy value.
My personal approach to life is to look at my activity. If my activity is not improving things in some way, then I look for other activities.
The Creation of False Signals
One thing I have learned about trading is that, when there is a signal that triggers trading, the market will start producing false signals to lure people into bad trades. Any trading formula replicated by a large number of users will simply start creating bad information after awhile and hurt the traders.
Anyway, I think the question: "How do I create value?" is more interesting than "how can I exploit this system?"
Are you a trader?