>>60568609
>being a chartist
In A Random Walk Down Wall Street by Burton G. Malkiel, the author critiques technical analysis and chartists (people who rely on historical price charts to predict future stock movements) with a mix of humor and skepticism.

Malkiel likens technical analysis to astrology, humorously suggesting that both are pseudosciences. He writes, "I have yet to meet a rich technician," implying that chartists fail to reliably outperform the market.
Pattern Recognition Overreach:

He criticizes chartists for seeing patterns where none exist, saying they often find "head-and-shoulders formations, triangles, flags, and cups with handles" in random stock price movements, much like finding shapes in clouds.
The Random Walk Hypothesis Argument:

Malkiel argues that stock price movements follow a random walk, meaning they are unpredictable and largely independent of past movements. This directly challenges the core assumption of chartists that historical trends can predict future prices.
Humorous Anecdotes:

He shares anecdotes to mock the overconfidence of chartists. For example, he humorously describes how chartists would trace stock prices with rulers and compasses, acting as if they were deciphering some ancient and profound secret.
Self-Fulfilling Prophecy:

Malkiel suggests that, at best, technical analysis might work as a self-fulfilling prophecy. If enough investors believe in a certain pattern, their collective actions could temporarily validate it. However, this doesn’t make the method inherently predictive or reliable.
Critique of Backward-Looking Analysis:

He points out the flaw of relying on historical data to predict the future, noting that markets are forward-looking and influenced by new information—something that charts cannot account for.

Overall, Malkiel portrays chartists as engaging in an almost mystical practice, using colorful and cutting remarks to highlight the futility of technical analysis in an efficient market.

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