Should We Suspect Technical Analysis

[Tobi]

Technical analysis attracts all retail traders. It is their easy shortcut to becoming millionaires. Adopting technical analysis allows one to dispense with any other auxiliary understanding like fundamentals or market psychology because price already discounts (reflects) all information whether known to the trader or unknown. Unfortunately this prevailing and conventional practice conforms only to the conventional result of retail traders. An infamous study showed that less than 2% of traders were profitable net of all fees. In fact: 40% of day traders quit within a month, 87% of traders quit within 3 years, 93% of traders quit within 5 years.You can read the full study here .Discipline and risk management only slow down the loss and prolong the survival duration.