EXCLUSIVE: How Technical Analysis Inefficiencies Are Costing You Money

Jake Wujastyk, founding team member and vice president of strategic growth at TrendSpider, discussed optimizing inefficiencies in technical analysis at the Fintwit Conference presented by Benzinga and Lupton Capital. 

Wujastyk said there are many elements of technical analysis that are time-consuming, and time is money when it comes to trading. He named inconsistent analysis, watching precise levels, searching for setups, gathering data and filtering out noise and other factors as potential inefficiencies that can hurt trading performance.

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"When I first started doing technical analysis, I literally would take a chart, use the Snipping Tool, go to Microsoft Word, paste it, then start annotating on Microsoft Word. It was definitely an inefficient process, and even with regular chatting software there are inefficiencies that come up," Wujastyk said.

Your Own Worst Enemy? When performing technical analysis, including drawing trendlines, Wujastyk said it can be very difficult to stay consistent. Even your own biases can work against you.

"If you've got a really heavy position in a stock, it's really hard to not draw your chart that's going to confirm your bais on the chart, so being able to remove yourself from that is a way to keep yourself honest. "

He also said it can be difficult for traders to view the market from different perspectives.

"I bet if we gave everybody in here a chart, everyone would draw something slightly different on the chart, which is great. That's what makes the market … If you're so ingrained into just what you're seeing, sometimes that will really hurt your trade because you're essentially just focusing on your perspective," Wujastyk said.

Learn more about this and other upcoming Benzinga events at this link.