Is it possible to organize the chaos in the financial markets, or how can be effective methods of prediction markets
Anyone who has ever faced with the work on the financial markets, know firsthand how difficult this sphere of activity. If at almost any small time intervals may at some point be successful in the long term success it comes to units. Factors, in virtue of which trading is the most difficult way to make “easy” money, we can not give you one, and they are well known. First of all, good risk management, issues of psychology and discipline, as well as the ability to predict the markets. And it’s safe to say that without these “three pillars” (by A. Elder) successful work on the market is not possible, it is impossible to ensure the stability of the stool without a minimum of three legs-supports.
I would like to debate on the issues of choice of those or other methods of forecasting prices and emerging with the problems and contradictions.
It is necessary to immediately make a reservation, that no matter how effective or ineffective may be techniques, they can be applied very individual, and that makes a profit one trader to another, due to the individual characteristics can be absolutely inapplicable, uncomfortable in the work, it is not clear and, ultimately, a loss. Therefore, issues discussed below have offered to take a look at the individual, based on personal experience of the market, and that someone may seem interesting, and someone controversial and voidable.
So, trade, success depends on what type of trading strategy a trader choose which forex trading accounts will open or what traders are forecasting tools. And maybe, after all, for the success of issues, analysts and the ability to predict the market does not stand in the foreground? Here is an example of the “long-term secrets of short-term trading” L. Williams. One successful trader was asked about his decision-making methods to enter the market, to which he replied, opening the deal to a pendulum: the pendulum oscillates in one plane – he buys in the other – sells. That’s all. True, it has its own exit from the market rules in case of loss and retain the position in the case of a profit, as well as some kind of a risk-management. How indeed it was a trader can know only the author of the book, however, it might be a profitable trading system, in which it turns out that the analysis is not the main factor.
Or another example. The article B. Babcock, “The effectiveness of outputs” is an example, when a group of traders offer the same to enter the market, but the decision to withdraw from the trader to make transactions themselves. It turned out that the results of the work of traders can diametrically differ – from the production of large losses to a considerable profit. And in this example we can see that the entrance to the market based on some analysis would be important, however, the trader will profit or not, it is still determined by other factors.
We come on the market do not toss a coin, and in this regard, wishing to increase the likelihood of profitable trades (positive expectation of the system), we have to resort to certain methods of analysis and market forex technical analysis. And it is believed that the correct input should not just bring big losses in case of wrong forecast.