Prediction and Science in Forex
Science plays a role everywhere and Forex is no exception. “Forex market dealings are based on science and predictions can be easily done with latest science and technology”… If someone tells you this way, mark them; they are either fraud or ignorant. Forex market and science are placed at a very long distance apart. Of course, I do not deny the fact that there are some complex calculative methods and base assumptions in science, which can make Forex look cooler than it actually is! When it comes to reality, the Forex market is never so.
Forex is based on intelligent moves. I have always insisted on playing simple. Well, simplicity is the matter of profit in Forex market and this should be acknowledged by everyone dealing with Forex. This sense of simplicity does not come with science, only because of the fact that what you see is the net result of a complex calculation altogether. It can be hard to disbelieve someone, even perhaps your broker, who says predictions can be easily done with science and technology in Forex trade. But, if you analyze the most successful profiting people in Forex, on their success story, they would not have analyzed all these scientific equipments, but would have analyzed the situation and the money behavior. This analysis itself can take you to a concluding fact that the most successful Forex traders are not blind followers of science; nor do they depend on science for any predictions and analysis.
If it were true that science can predict Forex market accurately, the percentage of the successful traders should have increased. But, unfortunately, right from the beginning, the successful trader’s rate is only 5%. Had science been that powerful in predicting, there should at least have been an increase in the percentage of these people. The statistics that they are not, clearly tells us that science has got nothing to do with the Forex predictions. Even if so, it is very negligible.
Ultimately, scientific predictions are the results of a complex analysis of situations of the similar kind. Now that seems pretty interesting since, in the above phase of the article, I have mentioned analysis is the key result of success. But, there exists a small issue in the analysis. With respect to the scientific approach, the analyses are carried out depending on the states the markets were in, in the previous situations. But, the present situation need not necessarily match the past ones. Money behavior changes from time to time; even minute by minute for that matter and that is why Forex is unpredictable.
A person can succeed in Forex if and only; he throws his emotions out of the market and plays the game with utter sincerity and simplicity.
