Many forex traders think that prices move to a scientific theory and that they have to predict to win at forex trading but this is one of the largest trading myths and will ensure you lose. Read on and find out why and learn a better way to guarantee currency trading success.
The myth that forex prices move to a scientific theory has been spread by vendors who sell predictive trading systems that they say will make a trader rich and they appeal to greedy or naïve traders.
Of course they do not work – why?
If prices could be predicted with scientific accuracy we would all know the price in advance and there would be no market!
Markets move because they are uncertain.
Of course if somebody really had found a scientific theory, they would be busy making money to sell it to you.
Predicting forex prices is simply another word for hiring or guessing and if you base your forex trading strategy on that you do not have one!
Famous Scientific Theories that Do not Work
There are lots of scientific theories and many are based around the Fibonacci number sequence (which was actually devised to solve a problem to do with the copulation of rabbits in the 12th century) this is not to insult Fibonacci who was a brilliant thinker – but even he would be surprised at how his theory has been hijacked by the far out investment community.
Also in the hall of fame is Elliot and his Wave Theory (lets ignore the fact he died a pauper) and look at his trading system.
There is nothing scientific about the theory.
It's all subjective! If a theory is scientific it should be by definition objective.
Finally we have Gann and natural law – well if he knew how the markets moved why he did lose all his money and have to sell courses to make a living?
None of the theories are scientific.
They appeal to the lazy, naïve and the far out crowd, who love them.
The problem is they do not know the scientific theory of market movement and no one does – because there is not one.
Let's get in the real word and focus on making money with a forex trading system based on sensible logic
The Good News!
The good news is that human nature is constant and you can spot repetitive price patterns that can be traded for profit. You will not win every trade – but if you trade the right set ups and execute your trading signal at the right time, you can win longer term.
Forex trading is simply a game of odds but that does not mean you can not win – you can and the rewards can be huge.
Trade The Reality and The Odds
The best way to trade forex markets is to use forex charts and look and act upon the reality of price change. A trader who uses technical analysis does not care how or why the markets move, he is just wants to make profits when they do.
If you are looking for a level to hold or break wait for confirmation that it has first and go with the trend. Do not expect – wait until you see the reality and then execute your trading signal.
So if you want to learn forex trading the right way and get good forex education, understand that trading is a game of odds not certainties – but if you learn to trade them you can make a lot of money.