Technical Analysis

Technical analysis is a tool used poorly by Redditors and to a small degree by actual money managers. Technical analysis is looking at past trends in stock to determine future moves. When used poorly, it is one of the most crude and ineffective “tools” available, but it works a little when used effectively. Dummies will use technical analysis to justify buys or sell. They’ll say stuff like “It moved down the same way three months ago and immediately rebounded 5 percent,” they will then spend too much money buying a poor option or a poor trade. They may also justify their trade by drawing silly drawings that often have many arrows and their chart will most likely be named something stupid. Please don’t listen to these chumps, they have no idea what they are talking about. However, it is possible to a very minor degree to look at changes and find patterns. I know how naive I sound talking about AI in the stock market, but if AI technology continues to advance at such a rapid rate, it may be possible from a consumer point of view, for in a couple of years, to use AI to determine continual patterns in stock. Stocks do often follow patterns, while it is true that the stocks are variable and the relationship between those variables is extremely unpredictable, and therefore making a foolproof algorithm is impossible, it will be well within the realm of possibility to glean small nuggets of knowledge. Combining AI technology with technical analysis could provide an interesting new frontier for those Redditors who lack the tools available to Wall-Street traders. Sorry for the small article/essay, I’m at camp right now, so writing for long stints is sort of tough. I should be able to write longer in the coming days, and definitely after a few weeks, I just wanted to keep the streak alive.