Today with the advent of powerful software programs and faster computers, many traders are applying mathematics to get an edge in their quest for Forex profits but which method is the best? Let’s find out…
Let’s define what a mathematical theory is first – it’s an objective theory that works ALL the time, not some of the time.
Now there is no theory that works all of the time, as if there were, there would be no market, as we would all know the price in advance. All the theories that claim they are mathematical and predict are not right all of the time, so anyone who claims prices move to mathematics is wrong – they don’t.
So if prices Don’t Move to Mathematics How do you Win at Forex?
Many people try to make Forex more complicated than it really is and it’s a fact that Forex price movement is based upon probabilities NOT Certainties and you are trading the odds, that’s all. You can make money though by using a simple system, rather than a complicated one. Simple systems work best in Forex and always have, as there more robust in the face of brutal market conditions.
If you want a graphic illustration of this point just consider this fact:
Over the last 50 years, we have seen huge advances in computer technology and software processing power – but despite all these advances, the ratio of losers remains the same – 95% lose.
If you want to win at Forex understand this:
A simple system, applied with robust money management and discipline, is the way to make money in Forex trading and always has been. The best traders in Forex don’t actually come from a mathematical background, you will find more great traders from a poker playing background and the reason they do so well is – they trade the odds and they trade with discipline.
If anyone tells you, they have a predictive mathematical theory that works, their lying, they don’t. Don’t make Forex more complex than it really is, keep it simple and trade the odds and you can enjoy currency trading success.