I see numerous advertisements from gurus and system traders who say they can predict prices in advance with science – but this is impossible and if you try it you will lose. Avoid this forex myth and learn a better way to trade…
Predicting is another word for hoping and guessing and if you predict, your prediction in forex will be as accurate as your horoscope! You don’t get anything in life for hoping or guessing and the same is true in forex trading.
Why there is No Way to Predict
There is a huge industry online that sells courses and currency trading systems based upon the law of human behaviour.
Human nature is constant they argue and they know the law – follow it and you will predict and win but there’s a problem with this logic:
If there was a scientific law of investing everyone would know where prices were going and there would be no price movement! Furthermore, if a law is based on science it needs to be totally objective and work all the time – that’s the scientific definition. If someone had found the law of market movement they wouldn’t tell you or me they would simply make themselves billionaires.
The theories Of The Far Out Crowd
The most common methods that are sold which are supposed to be scientific are based on:
– Elliot Wave
– WD Gann
Are any of them scientific and tell you what to do?
Of course not, there all subjective and that’s not scientific by definition. Elliot died poor, Gann made a lot of money then dumped it and poor Fibonacci – his theory (which was to solve a puzzle of multiplication) has been hijacked for something it was never intended.
The far out investment crowd, love all the above theories and there mystical connotations – but they are not scientific and are not objective.
If it’s not objective and doesn’t work all the time – it’s not scientific – PERIOD
The REAL Way to Win
Trading is not a game of science it’s a game of odds. Just like the poker or blackjack player doesn’t win every hand you won’t win every trade but you can make a lot of money by trading when the odds are in your favour.
Trade the reality of price change as it happens and don’t predict. Sure you will miss a bit of the move but you wouldn’t be able to see that anyway so there is no point in trying.
Can you make a lot of money doing the above?
Of course you can – it’s the only way to make big gains.
Try trading a breakout method – this means basing your forex trading strategy on buying new highs and selling new lows. It’s a fact that most major forex trends start from these levels and if you wait for them and trade them, you will make a lot of money.
Leave science to the far out crowd and get a forex trading system that’s based around trading the truth and reality of price change and trade the odds.
The scientific theory of human nature is one of the biggest forex myths out there.
Sensible and logical people in other walks of life for some reason believe them despite the fact there obviously isn’t one – don’t make the same mistake.