Technical Analysis (stocks, futures, currency)

[random_buoy]

So what kind of indicators/systems do you guys use in your technical analysis?

My favorites:
1. Elliot Wave theory
2. 200 period MA
3. MACD
4. RSI
5. Fibonacci Retracements and extensions.

[bender]

So what kind of indicators/systems do you guys use in your technical analysis?

My favorites:
1. Elliot Wave theory
2. 200 period MA
3. MACD
4. RSI
5. Fibonacci Retracements and extensions.


What the fuck.

[random_buoy]

lol.... you don't seem to know what I'm talking about. Try googling. :)

[BlueDukie]

buoy, have you ever studied the Random Walk model?

I know, it's highly controversial, but it at least it spares me the chronic headache from worrying about all these other indicators.

[random_buoy]

buoy, have you ever studied the Random Walk model?

I know, it's highly controversial, but it at least it spares me the chronic headache from worrying about all these other indicators.

I've never heard of it.
did u personally backtest that system? If so, what was the success rate?

[random_buoy]

So in this model, how do you determine entry and exit points??

[random_buoy]

I've always wondered if quantum physics could be applied to financial markets... I read that some MIT students made millions by doing so....

[BlueDukie]

I can give a (very) brief view of the Random Walk Model.

Simply put, Random Walk says that stocks are normally distributed with a slight upward trend, thus, it's impossible to reliably time the market.

Instead of simply buying specific stocks, Random Walk advocates buying as many as possible (like ETFs or mutual funds) at any particular interval to diversify risk.

I know this seems like a leap of faith, but it's backed up by some damning statistics. Consider, for example, that 80% of mutual fund managers can't even beat the S & P 500 over a 10 year span. So basically, if the mutual fund managers, who get paid boatloads and have access to unheard of resources, can't beat the S & P 500, then neither can you- so save yourself the time and energy and just use the stock market like you would a savings account.

The only reliable (it seems) to beat the market on Wall Street seems to be getting on the inside of an amazing hedge fund (hedge funds as a whole averages 9% last year, S & P was 4%).

So yeah, controversial, but it seems to be gaining more acceptance. My finance professors in college were huge advocates of this theory, and it was interesting to see that even though most of them were former traders on Wall Street, now that they've "retired" they just put all their stock market money into ETF's.

This theory is also why investment houses tend to focus on bonds and derivatives now- in these investment vehicles pricing strategies do exist.

[random_buoy]

I can give a (very) brief view of the Random Walk Model.

Simply put, Random Walk says that stocks are normally distributed with a slight upward trend, thus, it's impossible to reliably time the market.

Instead of simply buying specific stocks, Random Walk advocates buying as many as possible (like ETFs or mutual funds) at any particular interval to diversify risk.

I know this seems like a leap of faith, but it's backed up by some damning statistics. Consider, for example, that 80% of mutual fund managers can't even beat the S & P 500 over a 10 year span. So basically, if the mutual fund managers, who get paid boatloads and have access to unheard of resources, can't beat the S & P 500, then neither can you- so save yourself the time and energy and just use the stock market like you would a savings account.

The only reliable (it seems) to beat the market on Wall Street seems to be getting on the inside of an amazing hedge fund (hedge funds as a whole averages 9% last year, S & P was 4%).

So yeah, controversial, but it seems to be gaining more acceptance. My finance professors in college were huge advocates of this theory, and it was interesting to see that even though most of them were former traders on Wall Street, now that they've "retired" they just put all their stock market money into ETF's.

This theory is also why investment houses tend to focus on bonds and derivatives now- in these investment vehicles pricing strategies do exist.


true.. As of now, I only trade currencies. I'm looking to get into full time trading once I get out of college. George Soros' quantum fund yields 32% annual return on an average since 1969. :shock: Soros is like GOD to me.

[SKYHIGH]

true.. As of now, I only trade currencies. I'm looking to get into full time trading once I get out of college. George Soros' quantum fund yields 32% annual return on an average since 1969. :shock: Soros is like GOD to me.
What method do you use for forex trading. How many years you've been doin it.
Bye
Sky