There are those that think Forex prices can be predicted with mathematical algorithms but they cant but that doesn’t mean you cant win, you can if understand how and why prices really move…
You can buy no end of get rich quick Forex Expert Advisors for 100 bucks or so and they all lose.
The algorithms used by most are laughable and based on unsound logic – but even with a clever algorithm, you are never going to be able to predict Forex price movement and a simple fact proves this:
If prices could be predicted in advance and such a theory worked, there would be no market. We would all know the price in advance! Those who look for order are wrong, there is no order but there are high odds set ups and that’s the key to winning.
Consider a game of chess and you will understand exactly how you can win:
The pieces sit on 64 square playing board and the rules are simple, anyone can learn them yet there are more hypothetical outcomes to the game than there are particles in the universe. The key to winning is to understand that the rules of the game, ALWAYS remain the same and it’s the same in Forex markets.
Prices can make three important moves – they can go up, down or move sideways but, the way they do is not predictable and cannot be seen as a set mathematical formula but you can win by buying up trends selling down trends and staying flat when the market does nothing. This is called putting the odds in your favor and its the way to win.
If the trader knows the rules of the game, watches the situation unfold and uses a set of rules to put the probability in his favor, he can win. Always keep in mind that the human brain has one huge edge over any computer – it is capable of independent thought and this is a huge advantage.
Just like the chess player who knows the rules of the game and thinks for himself, the Forex trader uses rules and while the market does not move to a specific order it does allow you to win – if you know the rules.
If you want an example of how humans can win in odds based markets, they are always developing a computer to beat the best chess player and until now the famous IBM computer Deep Blue, hasn’t won a series and has been convincingly beaten by players such as Kasparov.
We look for formulas and order in Forex price movement when there is none.
There will never be a way of predicting market behavior, so simply learn the rules of the game and play to win, by trading high odds set ups and the reality of price change and forget, all you read about computers being better than you – there not.