Human nature is constant and humans decide the price in any market and many new forex traders as part of their forex education look to follow one of the many scientific theories to help them predict market movement and enjoy currency trading success, let’s look at them…
You will see lots of forex trading systems say they can predict market tops and bottoms with scientific accuracy but how accurate are they?
The major scientific theories are those based upon the works of Fibonacci, W D Gann and Elliot.
The above theories and any others that claim that markets move to science are wrong markets don’t and cant by there very nature.
Because humans are not logical and do not conform to a universal ideal and this should be pretty obvious as if there was a scientific theory of human nature we would all know the price in advance and there would be no market.
It’s a fact that if any of the so called scientific theories worked everyone would follow them and of course they don’t. Fibonacci, Gann and Elliot made no money with their theories but that still doesn’t stop the far out investment crowd claiming they work when they quite obviously do not.
Trade to Win By Trading the Odds
If you want to win at forex trading, don’t look for something that doesn’t exist and look at the right way to trade forex markets to win and that means trading the odds.
An essential part of your forex education should be that, forex is a game of odds NOT certainties. Don’t let this dishearten you though – if you learn how to trade the odds and use a simple soundly based forex trading strategy you can win and win big.
The fact is markets move based upon the supply and demand fundamentals and human perception of them. At certain times greed and fear take hold and humans push prices to far from fair value and a price spike occurs.
These short term price spikes are easy to see on a forex chart and can be traded for profit. Sure you won’t win every trade- but if you win more than you lose, keep your profits small and run your profits you can make huge profits.
Today science has enriched our lives and we marvel at some of the advances that are made. You can however only apply science in certain areas and forex trading is not one of them.
Keep It Simple!
Forex trading remains and always will be, odds based game and if you think about it 95% of traders lost 50 years ago and 95% lose today despite all the advances in science and forecasting.
Forex trading relies on a simple method and your ability to execute it with discipline through periods of losses to achieve currency trading success.
If you get the correct forex education and learn how to do this, you may not be perfect with every trade – but you will make a lot of money.