Trading College’s Head Teacher talks: Tells STA members what it’s really like
A regular at STA monthly meetings, it was a delight to see Rajan Dhall again at this first in-person STA monthly meeting of 2022 at One Moorgate Place. Looking dapper, confident and slick in head-to-toe black, his presentation was as polished as he was, yet he managed to encourage audience participation throughout.
The talk was titled: ‘Common misconceptions with technical analysis and predicting movements in the financial markets’ and he admitted that while he writes on Macro themes which include a bit of fundamentals, 75% of his analysis is price-based. The ‘F’ word, as STA Chairman Eddie Tofpik calls it, drew his usual disapproval – and appeared again when some in the audience also admitted to veering away from strict technical analysis.
Like Lee Sandford who founded Trading College, Raj has a sporting background having worked on a sports trading desk calculating probabilities. As he says: ‘’when working with odds it’s stupid not to place a bet’’ when out-of the money options are very good value.
Our speaker firmly believes that without systematic trading there is way too much ambiguity in discretionary trading – and with this in mind he’s made thousands of trading systems. From his current examples (Glencore share price and a few others) he’s using three moving averages (including a 200 period one), a MACD histogram, and an oscillator his chart system calls OBS, which I’m guessing stands for overbought/oversold (as per Martin J. Pring) and which I would call the Relative Strength Index (RSI) – and Raj says he doesn’t really like. So, not to worry.
He then went into considerable detail about the psychology of a trader, its ups and downs, and the importance of being patient. ‘’Overtrading is a big killer’’, he stresses while encouraging us to ‘’let your system run to its entirety [as otherwise] you’re never going to know if your system works.’’
Tags: MACD, moving averages, optimisation, Psychology, systems
The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.
- Looking forwards and backwards: At this time of year December 2, 2022
- Long term weather forecast for power trading: Webinar from Refinitiv 17 November 2022 November 23, 2022
- ‘Are you delusional?’: The title of Victoria Shepherd’s recent magazine article November 14, 2022
- Larry the lad looking good: Despite trading since 1962 November 11, 2022
- The Day of the (Living) Dead: Ghosts and ghouls at this time of year November 1, 2022
- A fireside chat with author Jack D Schwager: He of Market Wizards fame on
- Market Wizards – and their lesser known cohorts: Jack Schwager hits the book launch circuit on
- Colours, clashes and clichés: How and why use colourful charts on
- Do you know Aroon? I do, but not very well on
- Must read classics: Richard W Schabacker – the real bible of technical analysis on