# Friends don't let friends ride the Elliott Wave or why Technical Analysis costs you $



## doctorj (20 March 2014)

The link below is to a research paper about individual traders and technical analysis.  I don't necessarily agree with the logic, but they claim that technical analysis costs investors on average approximately 50 basis points per month in raw returns from poor portfolio selection decisions, and 20 basis points from additional transaction costs. Whatever your opinion, it makes interesting reading for those considering TA or for those using TA and looking to improve their trading.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2401230


----------



## Value Hunter (26 May 2016)

*Re: Friends don't let friends ride the Elliott Wave or why Technical Analysis costs y*

Technical analysis = squiggly line voodoo. Yeah I really just said what most of us fundamental guys actually think.

I have yet to hear of a single person that has made a few hundred million from technical analysis alone and managed to actually keep it until death. As for fundamental analysis there are plenty of billionaires who fit that category.

Tell me what does a technical analyst do when buying an unlisted asset with no price history such as a small business for sale? They have to look at the fundamentals don't they? 

Technical analysis is absolute non-sense and has no basis in fact. In fact calling it analysis is akin to labeling a tarot card using fortune teller an analyst.


----------

