Because humans decide the price of any currency, so the facts are unimportant, it's how investors perceive them that counts. Not only must you understand the equation enclosed, you must understand its implications so you can build a Forex trading strategy for success... Forex Price Movement - The Equation For Price Movement and How to Use it For Profit Most new traders (and some who trade!) don't understand the way Forex prices move and they lose.

Think of how a good poker player plays hands, he simply plays the odds. The answer is you trade the odds and you trade the reality of price change. Fundamental Facts (Supply and Demand) + Investor Perception of Them = Price Now it's a simple equation but means you CANNOT base your Forex trading strategy on the following Most traders think that they can beat the market with a mathematical theory, as prices move to science and they also think you can predict in advance but it's obvious both assumptions are wrong - Why. He knows he can't win every hand but if he.

Humans are not logical beings, they cannot be predicted and they don't conform to a scientific theory which then leads to the question how do you win.