3 ms·
Two axioms for small investors: 1. You can’t make money by day trading. 2. Technical analysis is bunk.
by aj7 7y ago
Two axioms for small investors:
1. You can’t make money by day trading.
2. Technical analysis is bunk.
- bob1029 7y agoI would like to expand on this point because while it is true as stated above, there is more to the picture from my perspective. Day trading and technical analysis are certainly bunk, but the problem I see is people equating day trading with making intelligent stock picks which were NOT driven solely by technical analysis nonsense. For instance, predicting that a certain company's product will steal market share from a competitor based upon personal experience in the same industry and then purchasing stocks based upon this is an extremely viable strategy. Especially, if your intentions are to hold for the long term (beyond 12 months). You just need to get comfortable with the boundaries of your own understanding and make rational decisions based on this. I always see this black and white discussion (put everything into a broad market EFT vs day trade on technical analysis) without much discussion of intermediate strategies that are based on actual concrete research and understanding of the relevant markets.
- aj7 7y agoI do the above, but I think it might be vanity. It’s not clear I shouldn’t spread risk via ETFs.