Probably because of lack of knowledge and so many youtubers/twitters promoting that shit. It's mind boggling how so many people can give financial advice on social media and not to go jail for it. They also always skew things, so that it seems that their advice was good when it really wasn't.
Edit: I meant "lack of knowledge" that technical analysis is based on probabilities. Even if you do everything right, there's still a significant chance that the market goes against you. Which is when a lot of traders end up getting their accounts blown out. Brokers also give noob traders tools like leverage and margin, which only makes it more likely for people to lose everything in one bad trade.
It's not about knowledge. The stock market is fundamentally chaotic as it responds not only to external signals (like firm profitability) but also to itself. Following the market is essentially just the strategy of holding long enough and in enough stocks that you filter out the high frequency swings and focus on pure surplus extraction. If you try to follow the high frequency variations, you have to predict them in advance to take advantage. You can only do that if you have shit loads of data, a good algorithm and maybe a healthy heaping of insider knowledge. Most day traders don't have that.
Probably because of lack of knowledge and so many youtubers/twitters promoting that shit. It's mind boggling how so many people can give financial advice on social media and not to go jail for it. They also always skew things, so that it seems that their advice was good when it really wasn't.
Edit: I meant "lack of knowledge" that technical analysis is based on probabilities. Even if you do everything right, there's still a significant chance that the market goes against you. Which is when a lot of traders end up getting their accounts blown out. Brokers also give noob traders tools like leverage and margin, which only makes it more likely for people to lose everything in one bad trade.
It's not about knowledge. The stock market is fundamentally chaotic as it responds not only to external signals (like firm profitability) but also to itself. Following the market is essentially just the strategy of holding long enough and in enough stocks that you filter out the high frequency swings and focus on pure surplus extraction. If you try to follow the high frequency variations, you have to predict them in advance to take advantage. You can only do that if you have shit loads of data, a good algorithm and maybe a healthy heaping of insider knowledge. Most day traders don't have that.