Now that I got your attention, yes, you read it right: Technical Analysis is just not accurate. And I fully AGREE with you that it is not accurate at all. Huh? Jonathan must have gone nuts?
I have been receiving emails asking me if they can depend on technical analysis and give me so many examples where it is not accurate and why they should not use it, and I agree with them. They should not use it because it is not accurate.
If you are thinking if technical analysis can help you in your trading, then you asked the right question. Because in the question, you use the word “help”, and not “win”. That’s because technical analysis is not designed to be accurate, it never was. It is designed only to increase your probability, that’s all. Everyone wants to make money from stock market or forex because it is just so simple. Bet on a direction and in a few minutes, you will be able to make lots of money. Any Tom, Dick or Harry is able to do it. That’s why it is so attractive. And because it is so attractive, everyone is always looking for the holy grail, the Ultimate trading strategy, but alas, there is none to be found. If you want a 50-50 chance, I suggest you go to Marina Bay Sands or Genting Sentosa or any casino and try your luck there. At least if you put a $50, you know that’s how much you will lose, as compared to stocks.
Using technical analysis, if your chance is less than 50% winning, then you will not enter the trade. If it is 50%, you will also skip it because it is just not worth it. If you chances increase to 60%, 70% or even 80% success, then it is a risk worth taking. Remember, it is still a risk. Everything is always a risk. Even if the chance of success is 99%, there is always a risk. Unfortunately, there is no 100% chance of success, because the only thing that is 100% is that sooner or later, I will be dead.
Therefore, please don’t use technical analysis as a holy grail and a sure win because it will only disappoint you. But if you use it expecting it to fail, then it will reward you most of the time.
If you read above, you know that I mention to you that there is no holy grail, no such thing as the ultimate buy signal. I am sorry because that statement is wrong. There is a Ultimate Buy Signal and I have it. So far, only a few people knows about it, and that’s because I shared it with them. And it is so accurate that it can be considered a holy grail. But now is not the time to share it because … I need to sleep, YouTube waiting for me to be uploaded, watching Dow Jones, etc etc…
I will share it next time, ok? Just not today…
By the way, I also have the Ultimate Sell Signal, but it will be shared other day, just not today…
And if you are the few that knows about this special Ultimate signals, please do not share it out first. Thanks…
