Forex Is it closer to science or to the art, it is scientifically can develop business skills in forex trading, through the application of many of the scientific techniques, namely mathematics, psychology, economics and information technology, these sciences that help merchant on trade in the forex market . And we'll talk in this article about the application of various sciences in the forex trading market.
Forex and Science
Uses mathematics in the market for forex trading, and examples of this theory Baez, a theory of probability and statistics, base Baez: Basically a calculation of statistical likelihood based on a set of variables predefined (or historical data) For example, when you take a look at the frame time per hour, and you want to know what is the probability Candle growth of 25 points to reach 30 points in size. Can apply Bayes law here. This will allow any user to carry the required time to enter the market.
It uses psychology in the currency trading market there are numerous theories produced by the many schools in psychology, for example, theories of behaviorism and psychoanalysis, school Venzeraat behavioral divided into two parts: the classical requirement and procedural requirement. The analysis depends on the psychological theories developed by Sigmund Freud. You can use these theories to correct your behavior or to understand the behavior of others and expect roses their actions, and build them you modify your behavior in the market for currency trading, for example, you have to train yourself to avoid feelings of fear and greed consequences of trafficking currency, you have to understand the psyches of traders in the market in order to learn the incentives strengthen them making a purchase or sale.
Of course, the economy is one of the most important science in this market, it represents the basis of the changes that occur in curves graphs, which owns the economic indicators tremendous ability to control the markets, which are one of the main reasons behind the rise in prices and landing and Tmugea, there are many economic data task In Forex, for example, gross domestic product (GDP), which reflects a recovery or a relapse of the economy of any country, and unemployment data, and many other data. After that, the extensive study of the market can follow and expects the results of these indicators and data and thus can predict the future movement of prices in the forex market.
As information technology is the main reason behind the spread of the so-called Forex, Without technology, we would not be able to trade through programs installed on computers, where he became a trading in Forex is easy too, need not only to the push of a button on the purchase option or put option, technology is is that created the trading system via communication networks such as the Internet. We can not neglecting this important role of information technology.
In the war, you can not Tsatrh the enemy and know exactly what to do. As well as trade, you can not control the market, and you can not be sure what he would do investors in the Forex market. In wars, whether real or virtual, which you get in the market, we find that somewhat similar variables and find controlling interest in those who possess market awareness and a sense of the actions of others.
There are many people see in the type of trading Arts, Veyron that success in Forex trading is the result of skills in reading charts materialized from the brain's ability to sophistication in the analysis. They believe that the trader can not be a process set out on a scientific basis and in view of the results that are closer to the random, because the constantly changing market.
In the end, you can decide on what the Forex market, is it kind of arts or some kind of science?
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