Gisi

Beating the Quants at Their Own Game

In my opinion, technical analysis is only useful in REINFORCING the right TIME to buy or sell a stock. I would never rely solely on techs in carrying out my trades simply because I don't think historical price movements are any indicator of how the stock is going to move a month, or even a week from now. I strongly believe that fundamentals drive a business, whether those are the company's customer base, global presence, management team, or whatnot. It's the stuff we can't control that typically causes huge price fluctuations... On the other hand, behavioral trading techniques, as you mentioned in the article, are most easily handled through tech analysis (though not necessarily all the time). And behavior is pretty predictable.

Great article!