I happened to see the other day some random post from a professional baseball player still

in the minor leagues got paid when he got drafted.

I kind of have followed his career from a distance and his posts on his ex account, I just

randomly spotted these, were him praising some day trading guru.

And this day trading guru had a screen up with charts everywhere, indicators everywhere,

just the consummate bullshit that you see everywhere.

And the funny thing is, this is pretty normal.

Technical analysis is pretty normal

these days. Normal in the sense that a lot of people think they know what it is and think it's

useful. Now, I've always said there are two forms of technical analysis, the predictive kind, which is the folks that put charts up and

they tell you that based on this pattern or this squiggly line, this will happen the next day

or the next week or whatever. And then there are trend following traders who just say,

which way is the price going and I'm on board either direction, which is a reactive form of

technical analysis. These are very different approaches. I once gave a presentation at Market

Technicians Association. I'm not sure the exact name. A fairly big group in New York City. Maybe there

was like 500 people in the room, 600 people.

And I asked for a show of hands at the end of my presentation

how many people were familiar with the trend following that I just described.

I'd say 10% of the hands were familiar.

All of the people in that room were preoccupied, in love with,

fooled, suckered, whatever you want to call it, by predictive technical analysis. I can apply

these technical rules to any market at any time, and I will have success.

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