Online Trading: Why I HATE Economists!…

During my investment banking career, economists were for me public enemy number one! I never saw what the big deal was about. Most of what they say is completely unprovable. It is always after the fact, and their explanations of forex, stock market or commodity market moves are always retrospective.

The essential problem is that these economic pundits are providing reasons AFTER the fact for why the market has done what it has already done, and they always look good riding on a trend that they imagine is likely to carry into the future. However, what most uncritical people fail to realize is that there is no empirical PROOF for anything these jokers are saying. In other words, there is no evidence that the market moved BECAUSE of the specific factors that they discussed! Where’s the proof of that?

Answer: There ain’t none!

The stock market or forex market moved, and afterwards they said something about what they believe to be the causes. However, there is not necessarily any connection whatsoever between the market’s actual move and the causes they cite.

This is why the technical analysis approach is always superior and far more accurate than the best economist can ever be. It makes no pretentious claims about the “why” of market movement, but simply tells you, from the point of view of probabilities, what the market is most LIKELY to do. Almost invariably, a good technical analyst can tell from the charts that the market is about to make a top or a bottom, and they will tell you so well in advance of the event. They will then observe to their chagrin and annoyance, as I have had to do on countless occasions, an “expert” economist explain the “reasons why” the market made said move.

You can read the full online trading article about economists and listen to the trading mp3 podcast there too.

Asoka