There are many theories that say that as human nature repeats, there is a law for market movement and if you know the law you can apply a mathematical theory and make money but which is the best? Let’s find out…
Popular theories are – the Fibonacci number sequence, Elliot Wave and Gann’s price and time. There are many others but the fact is none of them are scientific or mathematical.
The definition of a scientific law is that it works ALL of the time!
None of the above work all of the time and that means there not mathematical.
In fact there is no hidden law to market movement because you are dealing with probabilities not certainties.
Just like a good poker player, makes money trading high odds hands, the aim of the successful forex trader is to trade high odds trades.
People think that the appliance of mathematics can beat the market but if the market doesn’t obey any law then it’s doomed to failure and this leads to a simple fact about Forex trading which can lead you to success.
50 years ago – 95% of traders lost and the ratio of traders who lose today remains about the same.
This simple fact leads to a compelling conclusion.
If you think about it all the advances in news, forecasting and mathematical theories have not increased the number of winners and this means you need to – Keep it simple and success is dependant on something else!
Simplicity and Discipline the Keys to Success
Simple systems always work best in an odds based market as they have fewer elements to break than a complicated one.
Once you understand this you need to trade with discipline trading high odds trades and keeping losses small. You are as we said earlier trading the odds like a good poker player and its no wonder that some of the top traders in the world – were you guessed it, successful poker players!
Most traders like to think they can beat the market and avoid losses and see technology as the answer but as we have just proved it’s not the answer.
If you want to win at forex, think like a poker player rather than a mathematician and you will have a lot more success, as you will be trading the odds and that’s the way to win.