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Forex Trading - The Scientific Theory of Market Movement

Article Summary: Human nature is constant and never changes and there have been several theories developed that are designed to take advantage of this; by utilizing a scientific theory of market movement - lets look at how they work.

Human nature is constant and never changes and there have been several theories developed that are designed to take advantage of this; by utilizing a scientific theory of market movement - lets look at how they work.

The three most popular theories are based upon the theories of:

W D Gann, N Elliot and his Elliot wave theory and Fibonacci.

All claim to have found the scientific theory of market movement but there is a problem from the start:

The problem is a scientific theory needs to be TOTALLY objective.

If a theory is scientific by definition it must be rule based, objective and work all the time.

Do the above theories do this?

Not at all.

We will ignore the fact that Elliot died poor, Gann had to sell courses to make money and Fibonacci well, his theory is nothing to do with finance and has been hijacked by the far out investment community. Just look at the facts of the theories and how objective they actually are:

Elliot wave and Gann - Are totally subjective, they don't tell you what to do, you have to do it all on your own! - That not scientific if you have to think.

Fibonacci tells you exactly what retracements to buy and sometimes they work sometimes they don't. However you can take any percentage you like and like Fibonacci retracements it will work some of the time - does that sound like science to you? Well it doesn't to me!

So why Doesn't Science Work?

Quite simply because you are dealing with humans and they don't think scientifically.

Humans are creatures of emotion and were all different.

We do NOT all conform to a scientific theory. Of course if we did and there was a scientific theory of human nature we would all know the price in advance and there would be no market!

Markets move because their uncertain - So leave the scientific theories to the far out investment crowd, concentrate on making money and to make money you need to trade the odds.

A Better way to Trade

Forget scientific movements and trade the odds - it's the only way to trade but if you do it correctly, you will make a huge amount of money over time.

Just like the professional card player you will hold and bet big, when the odds favour you and fold and take a loss when they don't.

There is nothing wrong with taking losses, so long as you achieve you aim of making money long term.

Today, we marvel at how science can conquer illness, transports us faster than ever and generally makes our lives easier - but in forex it can never be applied as a theory and will never work.

So in conclusion, do the best you can accept the above trade the odds and you can make big profits.

Article Source: http://www.upublish.info

About the Author:
Monica Hendrix
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