The purpose of this Blog post is to shed light on sometimes misleading claims of crypto currency traders.
What caused me to write this was the proliferation of so called chart analysis/technical analysis on steemit. I believe people are trusting those charts too much and do not understand the risks involved.
So here is 4 out of the top of my head important problems that I see in technical analysis.
It doesn't work cross commodity.
-most of the methods were developed for stock market and will definitely not apply for crypto markets.
A cat can pick better stocks than some experienced traders.
-here is an article by Forbes about a cat outperforming traders by picking stocks at random.Forbes article
3.Technical analysis has low success rate.
-this is a well established fact stated on wiki, investopedia etc. etc.
-Only b/c it sounds smart it doesn't mean it means anything substantial.
Happy trading/Investing and stay Smart!