Mathematical & Scientific Theory of Market Movement
Today, with powerful Pc’s and software traders work out complex formulas based upon the scientific theory of market movement and predicting prices in advance but which are the best and how effective are they? Let’s find out.
Forex prices are determined by humans and human nature is constant so there must be a scientific theory that predicts this and all you need to do is work out to the formula.
The Flaws in Scientific Theories and How to Win
Many theories exist and you will probably be familiar with Gann, Elliot wave and Fibonacci and many traders use them but there not scientific. A scientific theory by definition should work all the time and none of the above do furthermore, they are not objective and that is the definition of a scientific theory.
Of course there is no scientific theory and common sense tells you this. If there were such a theory there would be no market, as we would all know the answer in advance! Don’t be dismayed though you can win – if you see the market for what is an odds game.
Why You can Win Trading the Odds
Human behaviour is not scientific but it is constant and while you cannot get every move right, if you trade spikes of greed and fear where humans push prices to far up or down, you can win.
An odds based system based around forex trend following is easy to understand and will be robust sure you wont catch every trend – but a forex trend follower can lose 70% of the time and still make money, if you hold your winners and cut losers quickly – this is the basis of forex trading success.
Don’t Seek Perfection aim to make Money!
In forex trading there is no such thing as perfection or a trading system which works all of the time but you can make a lot of money and that is your aim. So don’t believe anyone who tells you they have found the scientific theory of market movement – they haven’t. Focus on getting the right forex trading education and trade the odds to win.