Many traders who seek bigger Forex profits want to use mathematical formulas for profit but which is the best theory to use? Let's take a look...
Mathematical theories are based on the assumption that human nature is constant and this means that market movement can be predicted if you know the equation.
There are many Forex robots which claim they have found the mathematical theory and can predict prices in advance and there are other theories, such as those based on Gann, Elliot Wave and Fibonacci - but there is a problem with all them and it's the following.
To be defined as a mathematical theory, it must be a set equation that works ALL of the time, not just some of the time; that's the definition and no theory works all of the time. If of course mathematical theories did work all of the time, there would actually be no market, as we would all know the price in advance and there would be no market!
Common sense really - but most traders still try and find something that doesn't exist.
Now let's look at a better way to trade Forex markets for profit.
Forex markets don't move to mathematics and certainties, they move to the odds and probabilities. Sure human nature is constant but it doesn't repeat exactly to a mathematical theory, as we are creatures of emotion as much as logic.
The best you can do is trade the odds - but you can make a lot of money doing this, here's how.
In Forex trading more of the top traders have come from a background of poker than mathematics and the poker players have a big advantage over the mathematicians.
They keep Forex trading simple and are used to taking small losses and waiting for high odds set ups and that's exactly what you need to do to win.
Most mathematicians think that their clever, so they deserve to win and they have egos. They keep making their theories more complex and they have more elements to break in the brutal world of trading also, they hate taking small losses as it hurts their egos and let them run which ends up in an account wipe out of equity.
If you want to make bigger Forex profits, forget mathematics and prediction and trade the reality of price change and the odds.
In the last 50 years, we have seen massive advances in mathematics, forecasting, the power of software and a huge number of new investment theories - but guess what? The ratio of winners to losers remains the same! This means that all these advances have made no difference to the winning number of traders.
Many people try and make Forex trading complicated, when it's essentially simple and relies on a simple Forex trading system which the user can apply with discipline.
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