Technical Analysis
I love technical analysis.

Specifically, I love that other people use it.

People who purely trade off of price action instead of fundamentals tend to be momentum traders, and "weak hands." Meaning, when there’s a correction, they sell.

For example $TSLA is down 15% today. People who bought in recently because it was going up, are now selling because it is going down. I bought the majority of my shares of Tesla in July 2019, when the technicals would have told you to stay away.

People who prioritize technical analysis don’t know why a company was trading well to begin with, so they don’t know whether a dip in price is an opportunity or an alarm bell. They don’t stick around long enough to find out.

When they sell because of a particular pattern, they’re selling to me.

Post media

They’ll be back once the price starts going up again, but by then they’re buying just in time for the next drop.

Technical analysis is an exhausting way to invest. The technicals are always changing. You’re getting a lot of noise. Once that becomes how you invest it’s hard to take a vacation and stop looking at the charts for a couple of days.

In my mind, technical analysis should be used sparingly. Fundamental analysis is a better use of your time.
No comments yetBe the first to add your insight!