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In a message dated 97-06-26 09:31:14 EDT, gta3@xxxxxxxxxxxxx (Tom Alexander)
writes:
<< Dear RRPITA,
The primary risk that a technical analyst, or any analyst for that matter,
at a large firm has when making a recommendation has little to do with
making an incorrect analysis and everything to do with maintaining the
party line. That applies to large money managers as well. Ask Jefferey
Vinik.
This is not necessarily the case for all. Even if it were, one could hold
them in high regard. Could you imagine only being able to go long a market
and never being "allowed" to time a reverse if the market does? Or even more
difficult, having to constantly have an opinion when a market is giving mixed
signals. How would your equity curve appear under these type of handicaps?
As far as being exceptional, some are and some aren't. Certainly some have
been practicing technical analysis for decades which may partially explain
the lack of respect generally given to technical analysis.
How do you figure?
Sacrifice brings up a very good point; many clients have been sacrificed.
I can definitely find many clients who have been very greatful - I've seen
them personally.
There is some incredible analysis right here on RT, but the advice given
isn't necessarily acted upon by the givers.
As is the advice of technicians aren't not necessarily acted upon by brokers
and clients.
This is an incredibly interesting forum. There is some incredible analysis
and some not so incredible analysis, along with many different methods. What
I find most interesting is the ability of some to make "a mountain out of a
mole hill" when it comes to analysis. I believe most really successful
traders all agree on the KISS method.
It's much easier to give advice
on what to do with someone else's money than one's own, especially with a
captive audience. Unfortunately OUR mistakes cost us our own money.
This statement has a lot to do with personal psychology. When I have traded
other people's money, I was far more risk aversed than with my own. I can
personally take a loss and sleep at night - others may not.
If you want to wait until the first bounce after the next ten percent
correction fails and find youself down fifteen percent before a name
analyst decides we may not be in a new paradigm afterall, be my guest.
Wow, a big assumption here! First of all if this were an actual "setup" in
an actual trading scenario, I would make sure I had that "all important"
intial stop in place. This also assumes that I take the advice of a name
analyst. Personally, I make all of my own trading decisions. Therefore, I
am unable to be your "guest". Perhaps another time! - RRPITA
Regards,
Tom Alexander
>>
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