The Fx I.q. Way To Getting Forex Trade Wins
Think about the numbers 1, 2, 3, 4, 5, 6 forming a series
. Can you guess the next number? The number 7.Although the solution made its apparent so easily in the above, the true fact is that predicting numbers in the forex market are not so different. Your brain has to be super good with numbers and also to memorize them all if you want to hit upon the right answer here.
Let's look at another example: 1, 2, 3, 5, 8, 13, 21. It will be obvious to most people that the next number in line is 34.
You have to recognize that each number is given by the sum of the two numbers coming before it. As a trader, you should remember the above series as the Fibonacci series that is primary to a lot of things in nature , including forex price movements.
These cases simply tell you how tough it is for a forex trader to predict the numbers in the price movement of the markets. The value of the Forex Trading Intelligence Quotient, or your FX IQ is decided by your abilities in this field. To try and get an idea of how high your FX IQ is, try and study a string of happenings that are uncorrelated on the surface, for example the hurricanes that devastated the coast of Florida some time back.
First of all, it can't be told when a hurricane will occur. A scientist cannot predict the exact time of the occurrence of a hurricane but he/she can spot one that is building up off the coast beforehand.
A professor in MIT (called Lorenz) came up with something called the Lorenz Butterfly Effect and this is why this happens. The Butterfly Effect is the primal discovery that he had made during his research in trying to predict hurricanes.
The butterfly effect says that when a system is complicated there is a limitation put on the predictions that can be made about the system. Lorenz was responsible for showing that the initial conditions of a hurricane were highly sensitive and controlled by a large number of variables, making it possible that even a little butterfly could flap its wings near it and send it on a diametrically opposite track.
Hence, to foretell a hurricane, one would have to get the exact initial conditions that were there when it formed. Omitting even a single decimal point will mean that your forecast will fall flat.
Forecasting forex prices and predicting hurricanes are not that unrelated. The toughest thing is to come up with the next number for a particular currency pair (say) as we have no idea of all the variables that give rise to those numbers.
So, it is impossible that any system can predict these values or prices with complete precision. As all the factors impacting the forex market cannot be found out, it makes all of these computer-based techniques untrustworthy.
They are vulnerable to the butterfly effect. The result might be affected by even the smallest factor being overlooked.
Yet, once a structure/pattern emerges, safe projections can be made on the behavior of the currency pair and its trajectory with significant accuracy. As this kind of prediction in forex necessitates a keen sense for pattern recognition, very few algorithms are constantly correct in their outputs.
The trick that will help you to increase your FX IQ score is to correlate successful trades and store the patterns in your memory. The prices in the forex markets have the tendency of appearing chaotic but this is solely because of our lack of knowledge about the true system variables. Forex prices represent the emotions that are attached to assets worth $2 trillion, and so the net patterns that do emerge are hid beneath the diffusive numbers.
Only by recognizing the basics of the concept of intelligence in the forex can one find the formula to become sharper in the forex market. If you have to get a larger FX IQ, you have to notice patterns in how you trade.
Now, try to achieve a succession of trades that win. To make it a learning experience, look at the patterns of your trading instead of focusing on the trades.
The knack of getting winning trades in a row of say five or six or seven is not just pure luck. The trader keeps a track of the past behavior and uses his memory to foretell anything about the future , in this s/he is an expert.
After a point, with sufficient experience and practice training, the winnings tend to cease being theoretical. It is within anyone's grasp. All it requires is having or building your FX IQ.
by: John Chambers Diet Pills Online Diet Pills Online Without Prescription Watch Twilight Saga Eclipse Online Free Trailer Did You Go Broke With Adwords? How To learn To Speak Spanish Online How To Date A Transsexual And Meet Transsexuals Online Through Transgender Personal Advertisements Online Classified Ads - The Benefits Of Buying Through Classifieds Get It Here! Helpful Golden Retriever Information Online Buy wedding dress online How Can I Earn Money Online For Free Earn Money Online Free Ebook - A Step by Step Guide to Earning Money Online Without Spending Any It Is A Great Deal To Purchase Eyeglass Frames Online