Elliot Wave is a lot more logical than using astrology.
Elliot Wave is at least backed by some form of logic and understanding of markets.
Watch from 1:39 to 2:02.
astrology and every other system is just as good at predicting the future (which means pretty bad) as elliott wave ... i never cease to be amused by people who laugh at astrology and then support equally bad and un-proven systems .... show me the good research that demonstrates elliott wave theory worksThe Elliott Wave Principle, as popularly practiced, is not a legitimate theory, but a story, and a compelling one that is eloquently told by Robert Prechter.
I would like to see proof that Elliot Waves even exist. Every practitioner sees them differently. There is no objective definition of Elliot Waves, you can't program a computer to plot Elliot Waves according to a mathematical formula. They are entirely subjective.
In this respect, someone who sincerely believed in astrology or sun spots could become as good an investor as Robert Prechter, not because astrology or sun spots are legitimate investing theories but because of the practitioner's skill and experience. Elliot Waves, sun spots or astrology only provide the viewpoint they need to make sense of the markets.
Van Tharp and others have proven that a bad system, suitably tweaked and with rigid money management rules, can produce investment success. I'm sure that a lot of investors, including professionals, who believe they understand the world of investments are kidding themselves. Their fine spun theories fail them as often as they succeed, but the winners are quick to drop losing positions and hang onto winners. The fact that their investment philosophy is entirely bogus does not stop them from making money.
George Soros is a good example. He was fond of spinning elaborate scenarios of the future and putting on trades accordingly. When his positions went against him he would leave on the original position and start a new position that was the opposite, only bigger.
In this way he became a billionaire by making 5 billion dollars and only losing 4 billion.
Last edited by Rusty O'Toole; 2012-06-08 at 09:30 PM.
Id say give it a whirl with a "small" part of your portfolio.Like the saying goes:there is only 2 ways to make money in the market 1)Trade(buy/sell)on superior information or 2)BE LUCKY.(via astrology or whatever crazy idea)
Finding superior knowledge/information requires access/ability/analize PUBLIC data better than all investors in the market(pro's included)People laugh but lets be honest when it comes to the market everybody playing has the deck stacked against them-does'nt matter how many hours they spend in study-Luck can play a part and maybe something in your astrology method "hits"-people discount luck.
There are only 2 ways to beat the percentage, either trade very infrequently (buy and hold for years) or have your winners far outweigh your losers. This requires good systems and good money management . Since the best systems give nearly as many bad signals as good ones, the only course left is to trade so that you cut your losses (keep them small) and let your profits run.
Investing based on astrology was discussed on the Lang O'Leary Exchange tonight.
If anyone is interested, the video should be posted soon at:
I can't say I was impressed in any way.
The dude was too high level, evasive, and noncommittal.
Haroldcrump that sounds about how he should behave to me, so just don't worry and trust in the stars and everything will sort itself out.