Traditionally,
chaos is considered to be a disorderly structure but chaos according to
Bill Williams Chaos theory is a much higher level of order, in which
there is absense of pattern and play of chance.
Chaos is permanent, but stablility is temporary. Financial markets are the result of chaos.
Cause and effect are predictable in the Linear World. In the Non-Linear World such as the financial market (Forex Market to be precise), such relations between cause and effect do not exist.
Fundamental or technical analysis
cannot guarantee steady profitable results on the financial market. The
investor who relies on linear prospects will never see the
‘real’market, constantly risking money.
Traders lose because they rely on different forms of analysis, which
are inefficient in fact and are therefore useless or even dangerous.
Trading is a physiological game, the way of self-realization and
self-knowledge.
To get to know it better and to follow it no matter what, there are two significant aspects to successful trading:
1. Self knowledge
2. Understanding of the market structure.
2. Understanding of the market structure.