Financial Markets: use of technical analysis mortal sin?


#1

Hello out there…I have a question as to whether use of chart/technical analysis in order to make decisions to buy and sell a financial product/commodity/currency/etc. constitute a mortal sin?

Chart, or technical analysis, is where certain guidelines, techniques, or math formulas based on a stock’s history are used to “predict” whether a market will go up or down. No, its not like tarot cards or other “fortune telling” things because it is based on math formulas and patterns, but there are some similarities.

Now, I have been around this stuff for a long time and can say that its reliability is questionable in that it shows patterns and suggestions as to whether something is trending higher or lower or is over priced or under priced (and that’s another topic) - Weather forecasts are generally more reliable.


#2

This is not s mortal sin nor is it a sin. It does seem to be a bad idea, because honestly, who is going to actually be able to use this strategy to beat the market?


#3

Nearly everyone can use technical analysis to make charts of various kinds showing trendlines. Hardly anyone including technical analysts beat the market averages over the long term.


#4

It’s not a sin. I know someone who knows technical analysis, and he uses it in helping to decide what issues to purchase.


#5

There has been an effort to game the “system” this way for years.

It has no more connection to divination than talcum powder has to pixie dust. I’d not be concerned, nor would I put faith in it.

ICXC NIKA


#6

Its not a sin of any kind.


#7

Deductive and inductive reasoning is not a sin.

Guessing and sensing is also not a sin.

As Jesus says in the Gospel (Matthew 16:2-3):

"When it is evening, you say, ‘It will be fair weather, for the sky is red.’ And in the morning, ‘Today there will be a storm, for the sky is red and lowering.’

“You know, then, how to discern the face of the sky. And can you not know the signs of the times?”

If you want to be funny, you could also quote Jesus in Matthew 24:28:

“Wherever the body will be, there will the vultures be gathered together.”


#8

Thanks everyone for your feedback - it’s one of those things that you never really think about, and then one day it makes you wonder

God Bless,

Slow Learner


#9

Back in the days when it was difficult to miss in aiming in the direction of the dart board, I was a member of a stock club. We had a tech analysis sheet
for each stock we discussed. Front and back, one page.

Should I be blessed with a long life and cognitive function, I am wondering if I will look back on these last decades and remember financial analysis being as enjoyable.

I have enjoyed this thread with your thoughts and references.


#10

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