Yes, you find yourself asking what does it matter? In fact, we all, in essence, all do the same: speculative trading on the Forex markets, on stock markets, on commodity markets – with the only aim to earn money. Somebody wants to earn a fortune quickly and is ready to take a risk; somebody wants to get more than just the income from a bank deposit with minimum risk. Some people are ready to risk their savings; somebody else is ready to raise funding. We all are looking for that ideal model and strategy of how to make a profit with the minimum effort. In the evening, we all ask ourselves, what’s going to happen tomorrow? What will be the price of oil, the price of gold, how will the US market close, how will Europe and Asia close? What did Bernanke say in his speech, and how it did it affect the dollar rate? We analyze fundamental data, dive into the jungle of technical analysis, figure out the force and direction of a trend line or just listen to ourselves and think of a decision or a strategy that we will apply tomorrow. We go to sleep and ask ourselves were we right to transfer a position for tomorrow, and what should be the stop-loss order and take-profit order for that deal which I intended to open? Time passes; we gain daily experience of the workings of the market and we assume that we have acquired a sufficient understanding of the market and can predict it… however very often it turns out that it does not work as we thought it should. And are we willing or not to ask ourselves if there is a system in the world which we can learn and which is used by successful traders, resellers and investors?
Some people ask themselves this question sooner; others later, but eventually we all come to accept that there IS NO such system. The market is chaotic, and the ideal model does not exist. We will always have profits and losses, and we can only try to minimize our losses and maximize our profits from trading operations. In addition, all tools for technical analysis as for fundamental analysis remain only tools, which we can use to confirm or confound our thoughts and decisions.
By chance in one of my conversations with a friend of mine who has been actively engaged in Forex trading more than 10 years, we discussed that in recent times weather forecasts have become more precise. Probably the forecasting methods have changed. Alternatively, we are becoming better at understanding and analyzing cyclones and anticyclones. The answer appeared very simple: with the development of computer equipment in order to forecast the weather, data from a great number of satellites, is used and forecasts of many bureaus are generalized (unlike before). A certain average value is calculated in this way and presented to the consumer. And since the amount of data is huge and equipment processes billions of bytes per second, it is possible to process the entire amount of data also taking historical data into account and thus to offer the most likely forecast.
Nevertheless, why it is not possible to do the same: to analyze data of stock markets and Forex markets for many years and offer your forecast? Whilst it will definitely not be a golden key, which will open the door to prosperity and successful trading; it will be an alternative tool that will present an unbiased mathematical picture of the market; and after that huge array of data is processed we’ll be able to use the result.
We have tried and in our opinion developed a good tool which in addition to our technical and fundamental analyses, as well as our style and trading rules, GIVES US AN ADDITIONAL VECTOR FOR THOUGHTS, and additional criteria and arguments which we can take into consideration when making trading decisions.
You are welcome to try the Mathematical Expectation model; most likely it will give you an alternative view of the market and will help you to reach your own exact trading decision.
Successful trading and let a fortune accompany you and your deals.
Your trend 4 market Team
