Technical analysis is a contentious trading strategy. Neerav Vadera reveals the real reason it doesn’t work in real life.
“My name is Neerav Vadera, or simply NV. I currently run G7FX, a professional trading education program.”
NV had been a successful trader for the best part of two decades, having worked at various major trading firms, including Barclays Investment Bank. Working in such a renowned institution was an incredible experience for him, and it undoubtedly shaped his entire career. For NV, “I wouldn’t have the knowledge to share with you today if it weren’t for the experience I gained working in the industry.”
Over the years, he had learned many different trading strategies, including technical analysis. But, NV said, “I’ve since come to believe that if you’re looking to have a long, successful career in trading, trading analysis is not the way to go. It simply doesn’t work in real life.
I know this is a controversial position; it’s most likely the complete opposite of what you’ve learned online!”
He continued, “Soon after I transitioned from working in the city to trading privately, I noticed the overwhelming number of courses teaching the same technical analysis-based trading techniques. It completely shocked me. In all of the environments I worked in before, there was never any mention of using technical analysis when trading. Instead, we looked at what real buyers and sellers were doing and would never have dreamed of relying on the shape of a candlestick to predict how the market will move.”
This is why he always tells people to investigate before investing in their trading education. They need to make sure that the person they’re learning from has a professional background and the right qualifications to teach them.
In this article, NV will disprove common technical trading concepts and show the people exactly why he actively discourages traders from using these strategies in real-world markets.
Why Technical Analysis Doesn’t Work
To help everyone understand why the most profitable institutions don’t use technical analysis, he gives this example:
“Let’s take a look at one of the most popular technical analysis techniques out there: the Fibonacci strategy.
This technique relies on using Fibonacci retracement levels to calculate upcoming market movements. The issue here is that it doesn’t consider what actually makes the market move: supply and demand.
If you look at any financial market, small or large, the cause of movement is always supply and demand for that particular asset. It comes down to how much someone is willing to buy and sell that asset for at a specific time, as well as the volume of interested buyers and sellers.
Although the Fibonacci sequence is often observed in the natural world – it was once used to predict the population growth of rabbits! – that doesn’t mean it has relevance in markets. All evidence behind it is anecdotal and unproven. Despite this, many online training courses teach the Fibonacci sequence while failing to mention the primary driving forces behind price fluctuations.”
These fundamental lessons are precisely what the G7FX Foundation course covers in extreme depth. Without understanding what makes the market move up and down, people have a tiny chance of accurately predicting future market events, making it nearly impossible to produce consistent profits.
What You Should Be Doing Instead
Now that NV explained why technical analysis doesn’t work, it’s time to look at what “you” should focus on.
Earlier, he mentioned the importance of supply and demand. However, to see the full effect, people need to know what real buyers and sellers are doing in the marketplace.
NV explained, “When you look at a typical retail trading platform, you can only see some of the data, while large-scale institutions have the tools to see far more. This means you’re unable to access crucial information that would let you make decisions based on what real buyers and sellers are doing at that moment – you can’t see who’s selling, who’s buying, and at what price points. You’re also unable to spot trapped buyers and sellers to help maximize your positions.
Too bad those tools are only available to banks and hedge funds, right?
You can use these exact tools from your home or office trading set-up if you know where and how to access them.
It shocks me that more people aren’t aware of this. Trading without these tools is like riding a bike with a blindfold on!”
It’s Not All About the Tools
“Right now, you’re probably eager to access these tools and start making more profit from your trades. That’s definitely a large part of the puzzle, but it’s not everything.
There’s something equally important if you want to make money in this industry: how complete your understanding of how trading works is.
What you learn from institutional trading tools is useless if you don’t know how to interpret that data and make profitable decisions based on it.”
That’s exactly why NV created the G7FX Pro and Foundation training courses. These courses are designed to equip everyone with all the knowledge they need to go into the market and start making money consistently.
“This isn’t for anyone who’s just looking to dabble in trading. The education we provide at G7FX is aimed at traders who want to have a long and successful career as a private traders.”
NV believes everyone should have the opportunity to learn how to trade the right way. They should be able to go into the markets armed with the knowledge they need to find consistent success without wasting time and money on ineffective techniques.
He said, “I encourage you to continue developing your understanding of institutional trading, and I hope the information in this article helps you on your journey towards success!”
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