Comments on: What are the best mathematical strategies used to predict the stock or the Forex markets? http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/ Discussion of Forex Trading and Currency Trading Tue, 22 May 2012 04:16:37 +0000 http://wordpress.org/?v=2.3.3 By: clyde http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7222 clyde Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7222 If you use some theory or mathematical formula to predict the direction of the stock market, I can assure you one thing and that is that you will loose your money. If you use some theory or mathematical formula to predict the direction of the stock market, I can assure you one thing and that is that you will loose your money.

]]> By: zeul845 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7223 zeul845 Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7223 predicting a stock is highly uncertain. what you might want to do is do risk assessment in a portfolio selection using statistics. within which their are optimization strategies based on the amount of risk you are willing to assume. (somehow risk is quantifiable, which is what got a large hedge fund company into trouble years ago, then again they assumed "normal" market behaviour.) as far as modeling goes, i would look up the black scholes equation, stochastic calculus, and monte carlo simulations. also, intuitively feel these methods are in no way day trading strategies. predicting a stock is highly uncertain. what you might want to do is do risk assessment in a portfolio selection using statistics. within which their are optimization strategies based on the amount of risk you are willing to assume. (somehow risk is quantifiable, which is what got a large hedge fund company into trouble years ago, then again they assumed “normal” market behaviour.) as far as modeling goes, i would look up the black scholes equation, stochastic calculus, and monte carlo simulations. also, intuitively feel these methods are in no way day trading strategies.

]]> By: Bubble K http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7224 Bubble K Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7224 To know more about forextrading Please feel free to visit http://learnmoreon.com/forextrading/ To know more about

forextrading

Please feel free to visit http://learnmoreon.com/forextrading/

]]> By: Anil Kumar Raju http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7225 Anil Kumar Raju Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7225 Fibonacci Ratios is best,If you want to know more than about forex strategies come and see my blog. Fibonacci Ratios is best,If you want to know more than about forex strategies come and see my blog.

]]> By: Roy Tan http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7226 Roy Tan Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7226 Me too suggest Fibonacci Ratio / Retracement together with Elliott Wave Principle. Me too suggest Fibonacci Ratio / Retracement together with Elliott Wave Principle.

]]> By: Suzy http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7227 Suzy Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7227 there are some free forex trading tools with daily and weekly reports which u can use to predict the trend. all these tools are compiled in one software that launched about one month ago, you can download it free at: http://www.voocash.com Good Luck! there are some free forex trading tools with daily and weekly reports which u can use to predict the trend.
all these tools are compiled in one software that launched about one month ago, you can download it free at:
http://www.voocash.com

Good Luck!

]]> By: Jasmine http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7228 Jasmine Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7228 There are so many indicators, systems , Money Management theories, charts, totally a jungle where you are sure to loose your way.Select one or two indicators, one type of chart, one or two time frames make a system and incorporate a good money management.You can design a simple system.Moving Average Convergence is a good indicator, Candle stick chart patterns are good, A simple rule like 2% rule is very effective.(Don't risk more than 2% of your equity in any single trade).There is a simple candle stick pattern 'Harami'.Western analysts call this pattern an 'Inside day'.A very good pattern to trade. The location of a candle stick pattern is very important to make it meaningful.For example the market is in a long up trend, you can say the trend is matured, At the key Resistance zone 'Harami' is appeared. It is a good indication of a possible reversal.This is a set up. The Low Price of the harami candle is broken down. This can act as a confirmation and sell trade can be triggered into with very conservative stop loss(ie tight) .Target can be 20 SMA reading on Daily chart.You should think of such simple ideas which works for you.Demo trade. Prepare the statistics, Decide yourself. Good trading There are so many indicators, systems , Money Management theories, charts, totally a jungle where you are sure to loose your way.Select one or two indicators, one type of chart, one or two time frames make a system and incorporate a good money management.You can design a simple system.Moving Average Convergence is a good indicator, Candle stick chart patterns are good, A simple rule like 2% rule is very effective.(Don’t risk more than 2% of your equity in any single trade).There is a simple candle stick pattern ‘Harami’.Western analysts call this pattern an ‘Inside day’.A very good pattern to trade. The location of a candle stick pattern is very important to make it meaningful.For example the market is in a long up trend, you can say the trend is matured, At the key Resistance zone ‘Harami’ is appeared. It is a good indication of a possible reversal.This is a set up. The Low Price of the harami candle is broken down. This can act as a confirmation and sell trade can be triggered into with very conservative stop loss(ie tight) .Target can be 20 SMA reading on Daily chart.You should think of such simple ideas which works for you.Demo trade.
Prepare the statistics, Decide yourself.
Good trading

]]> By: Oracle Apps http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7229 Oracle Apps Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7229 The random-walk analysis back in the '60s argued that there can never be successful mathematical models. Coincidentally, if anyone found such a process, he would now be richer than Warren Buffett. The historical data on Berkshire-Hathaway shows 18.1 % compound interest. My best advice is find a company like Cleveland-Cliffs (CLF) which increased 48x in 5 years, then try to avoid the gimmicks and hyperbole that keep you from making a boat load of money. http://img182.imagevenue.com/img.php?image=59588_CLF_Cleveland_Cliffs_48x_122_403lo.jpg If the formulas don't work then why do they SEEM TO WORK? Mathematically this derives from the Central Limit Theorem. It's possible to toss a coin and get 10 heads in a row but the average over a large number of tries will be 50%. The random-walk analysis back in the '60s argued that there can never be successful mathematical models.

Coincidentally, if anyone found such a process, he would now be richer than Warren Buffett. The historical data on Berkshire-Hathaway shows 18.1 % compound interest.

My best advice is find a company like Cleveland-Cliffs (CLF) which increased 48x in 5 years, then try to avoid the gimmicks and hyperbole that keep you from making a boat load of money.

http://img182.imagevenue.com/img.php?image=59588_CLF_Cleveland_Cliffs_48x_122_403lo.jpg

If the formulas don't work then why do they SEEM TO WORK?

Mathematically this derives from the Central Limit Theorem. It's possible to toss a coin and get 10 heads in a row but the average over a large number of tries will be 50%.

]]> By: KnowledgeBase http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7230 KnowledgeBase Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/08/29/what-are-the-best-mathematical-strategies-used-to-predict-the-stock-or-the-forex-markets/#comment-7230 Hello Ted, Jasmine has some good things to say in her response. I agree that starting out with simple methods and use good risk control is the best way for you to go (using a demo account only at first). There are those that will say that you can't use mathematics to trade the stock and Forex markets simply have not done so themselves successfully. Some years ago I would have completely agreed with them, but now that I have learned to use technical analysis effectively I can say firsthand that you can use mathematics to profit over the long-term. Hello Ted,

Jasmine has some good things to say in her response. I agree that starting out with simple methods and use good risk control is the best way for you to go (using a demo account only at first).

There are those that will say that you can’t use mathematics to trade the stock and Forex markets simply have not done so themselves successfully. Some years ago I would have completely agreed with them, but now that I have learned to use technical analysis effectively I can say firsthand that you can use mathematics to profit over the long-term.

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