Week Ending 12/07/12: $533.25 Dec 9, 2012 8:08:08 GMT -5
Post by wheeles on Dec 9, 2012 8:08:08 GMT -5
Personally, I don't follow Zaky but all I ever hear regarding him when he is mentioned here are arguments based on fundamentals. If he's so skilled at TA, then why is he and his fund in such bad shape? From what I understand from the anecdotal reports of what he's doing is using either technical analysis or fundamental analysis to back up some very aggressive punts, which have not come off. It's as if he is cherry-picking his analysis to support whatever argument he is trying to make.
Admittedly, it is very hard not to try and dig up whatever evidence you can to support a thesis or an existing position. I'm guilty of that myself. It's amazing just how much your chart interpretations turn 180 when you reverse your position. That happened to me a couple of times to me last week.
As someone who trades on technicals alone, I still find it very difficult to trust what my charts are saying, even now. The desire for a move to go a little bit further, or pullback is incredibly strong. You end up conjuring up new rules in your head, or thinking that this time it might be different.
Probably the most difficult thing in trading technically is having the discipline to follow what your charts are saying, to not question them or discount them, and to dump a position or reverse it promptly if things start to change on you.