FT: drop more trading wisdom, thanks
Agree with this
TA complement FA and vice versa.
However most telling is the way you keep describing yourself as a trader. Buy-side may consider themselves as Investors. The difference being the investment timescale. Whilst in practice a lot of Buy side shops trade around their positions they seem themselves as fundamentally long-term investors. This outlook does not marry well with a primarily technical approach. Technicals are easier to apply and defned on a short term basis.
One other thing the guys here are not trying to troll you, it’s just the reality of the business that if you ask a senior buy side guy what they think of TA the response will be along the lines of “I’ve worked in the business for X years and I’m aware of the technical trading rules but, I haven’t seen evidence / don’t believe that they deliver actionable insights more than 50% of the time and so we don’t use them.” And that’s the nice version.
If you want to continue trading the way you do you won’t be able to do it in Buy Side. You’re going to need to find a Prop Desk, or someone else trading on their own books.
Even in a Buy Side shop who does TA it’s to support the story built from FA not the other way round.
A quick dislcosure to go with my comment I am a CMT candidate at the moment because I do believe TA can add value, but I don’t mention this in interviews, unless asked, and I’m never asked. It is on my CV.
^ You seem to have every designation in the industry. What will you do after the CMT?
I think you have a misconception of traders. Thinking that they are all short term based. Majority of them are. Then there is that minority. A few that operates on the long term. Heard the term long-pull? You don’t operate a long-pull without understanding the underlying fundamentals. Are hedge funds long-pull operators? You don’t accumulate millions of shares to hold for a few months. You hold for a few years.
The business is pretty much fundamental based. That i agree. But i believe there are a few that understands the fundamentals but also puts great value in technicals. The right sort of technicals. The CMT designation is a good designation to have. I don’t think it has any practical value however.
So then why is it a good designation to have? Perhaps take a course on logic. Philosophy will be your saviour.
lol
What do you want me to say? Some people actually like it when you’re trying to learn something new/different. Some people are just too stubborn, and don’t like it. But for trading purposes, CMT has no practical value.