“East Asia Economic Online column now posted” Misconceptions about moving averages

Good morning, this is Matsushita.

If you stay in the world of investment for a long time,

there are phrases you hear many times.

One of them is

“you can’t profit with XX”

.

For example,

people say, “You can’t profit from moving averages.”

Again and again, more people emerge who say this.

Moving averages may be replaced with RSI,

cycle theory,

and all indicators and theories are subjected to this,

and they are said over and over.

But these indicators and theories

have been used in the market for over 100 years,

and various methods and techniques have been developed,

and there are people who keep making profits.

Are they truly effective?

Or are they not effective?

The answer to this question,

as I have written before,

is clear when you look back at the history of these indicators and theories.

Indicators and theories that have been used in the market for over 100 years

are undoubtedly effective.

If that were not the case, they would not have been used in the market for so long.

Many people who say “you can’t profit with XX”

have only been investing for a few years,

having observed or tested moving averages for about one or two years,

and they understand nothing.

I have studied various indicators and theories for more than 15 years,

implemented some, tested others,

and examined their effects from various angles and time frames,

and all of them are effective.

That’s why I always say,

“All indicators and all theories can generate profits.”

However, attaining that understanding and practice

requires a delicate balance, and

it takes a certain amount of time to evaluate.

The phrase “you can’t profit with moving averages”

is a way of exposing your own incompetence.

Rather than that,

please approach it with the mindset of

“how can I profit from moving averages?”

and use your brain and hands to tackle the challenge.

If you do, that indicator will bring you

profit.

Your lifelong profit will be brought by some indicator or theory.

Please encounter such indicators and theories soon.

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