I would not question that one could do very poorly using technical analysis to attempt to make a dollar from the markets. Whether the 95% figure that is thrown around is correct, I don't know, but I suspect it's quite high nevertheless.
I know of no one who 'uses my methods'. The approach I take to analysing the market, while not necessarily ground breaking, could possibly be unique. My approach to risk management, money management, and trade management is certainly not original. I do regard myself as a very competent analyst and I do take exception to being labeled 'lucky'.
The 95% or whatever it is that lose money are going to lose for any of a large number of reasons. These are already written about all over this forum, other sites, books etc. and I am not going to go and re-hash them here.
Just one of these reasons, as you suggest, relates to technical analysis. Some are going to have little knowledge of how best to analyse the markets and are going to apply a limited understanding of the subject and lose simply as they don't have an 'edge'. They may think they do but if it were to be back tested or forward tested they may find they do not. Another problem might be that the system may be curve fitted on historical data but is not rigorous enough to work in the current live market. Others may chop and change systems thereby not giving their system a chance to work. The list goes on.
To suggest that 95% of traders fail due to technical analysis being akin to reading tarot cards is garbage. There are plenty out there that make money consistently that use technical analysis, thereby proving it's worth. I am sure that if you speak to a large number of unprofitable traders, most of them would be able to identify issues other than technical analysis that was impacting their trading, and if fixed, could turn around their profitability. Managing positions to extract more from them than is being risked most of the time springs to mind. Tho even this ties into technical analysis - personally I only enter a position when I believe I have a very good chance of extracting more from it than what I am risking. I don't, however, see how hedging a losing position, as you've suggested, is any better than closing it and re-opening another later on.
Quite the converse. Personally, I have an edge, similar to a slot machine. Different to the slot machine as the slot machine is hard programmed with a fixed edge. I can make mistakes, but slot machines do not. As I have an edge, which I believe to be robust enough to be a work in the long term, I will not be a big loser. Just like a slot machine I suffer drawdowns. But I am what could be regarded as consistently profitable. And I believe I am flexible enough in my approach to stay that way.
