I received an email from a reader that, frankly, I found both interesting and confusing. Here it is …

Did you know technical analysis does not work?  Did you know all you need is price and volume?  Did you know trading is common sense using only a few principles? Did you know Wyckoff is all you need to be a trader?  Did you know using the MACD, Moving Averages, RSI, etc. are all a waste of time?  Did you know there is nothing technical about trading?  Finally, did you know?

  • No, I did not know that technical analysis does not work.  That is news to me, as it is to every technical trader out there, I am sure.  But hey, thanks for telling me …
  • Well, yes, I have always known price and volume are important, especially volume, but thanks for telling me that is all I need …
  • Well, yes, I have always known trading is common sense and that certain principles are integral to success.  Thanks for reinforcing that …
  • No, I did not know Wyckoff is all one needs to be a trader, although I must admit I don’t really know what “Wyckoff” is.  Is it a trading methodology or is it Jim Wyckoff, the trader who has a ton of helpful educational material on this site?  I guess I thank you, but if it is Jim Wyckoff, I’ll bet he would thank you for the plug …
  • No, I did not know the technical tools you mention are a waste of time.  I am sorry to hear that because I have used them for years, and they always seem to help me in my trading.  Good to know, though, so thanks …
  • Well, I have always believed fundamentals are more important than technicals, but I have never thought that there is “nothing technical about trading.”  This is confusing, though, because I think I have seen the market move when crossing above or below 50- and 200-day moving averages.  I could be wrong about that, so, again, thanks …
  • I guess I didn’t know.  Thanks so much for enlightening me …

One of the beauties of life is the understanding that each day holds the opportunity to learn something unknown.  Truly, the amazing thing about this is seeing the sheer amount of things one just does not know.

Trade in the day; invest in your life.

Trade Ed