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Old 03-01-2008, 06:54 AM   #4 (permalink)
abcy8
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Default Re: A Mathematical approach to riches in FOREX trading.

When you toss a coin, the outcome is movement of one dimension only, we are betting the "direction" of facing up or down, hence probability of winning is 50-50.

When you place a forex trade, the movement is no more one dimensional, we are no more betting just the direction of up or down. We are betting an outcome that is movement of three dimensions,
1. the direction of up or down
2. the amount of movement
3. the time it takes to move

Even if you guess the direction correctly based on 50-50 chance, you may still not win the trade due to the amount and time factor.
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