“ As Easy as 1,2,3 “
It’s funny how certain moments in life tend to stay with you and my journey to Mathemarkets® is no exception. It all started nearly twenty years ago when I journeyed out to Singapore to find new beginnings in the financial markets. There I started off in Sales and Trading and then as a Proprietary Broker with a large UK bank. I was over the moon as they say to have secured such a position, I thought then “Ah, now all the secrets of the big wig traders will be mine “ but I was to be disappointed in more ways than one.
Anyway, It wasn’t long before I was looking at scores of charts which over the years turned into thousands. Somewhere along the way I made the inevitable observation that there was very little maths and hard science involved in producing these charts and indicators making their objectivity suspect. Even with my high school maths (A levels), I noted that what was called technical analysis (TA) resembled mathematical graphs and other concepts but weren’t the real thing. At first I ignored this, thinking to myself “ It’s probably an oversight on my part “ but this soon turned into a major annoyance for no matter how much I investigated and who I turned to, no one could even explain the basic misgivings about TA’s subjecttivity, no matter what book or seasoned trader I turned to. Eventually when I attended a TA conference sponsored by the institution I was working for, during the Q and A session I asked the resident Guru how “Parabolics “were calculated and he glibly replied that calculations didn’t matter and that all you needed was to know how to use it. I found this answer most unsatisfying, evasive even. To me it was like driving a car without knowing even the basics about how a car works, a dangerous proposition as I am sure you will agree.
Then years later back in London, another investor’s conference, another guru one of the biggest names in that industry in fact, another Q and A, I asked “Why there was so little maths in producing TA charts and indicators?” and yet again I got answers which were either evasive or missed the point entirely. The vagaries of TA continued to haunt me and at that point I thought that if the biggest names in TA could not give me a satisfactory answer then no one would and from then on I decided I was going to remedy this situation myself and apply as much maths as I could into making charts and indicators and so Mathemarkets® was born.
However no sooner had I embarked on my mathemarkets journey, I was ambushed by another inane question, this time from one of these prop shop types. He said “ whatever your system is , people are bound to ask – does it work? “.
Once again missing the point entirely because mathemarkets is and will always be a maths based method of creating charts and indicators; nothing more, nothing less. It’s not rocket science and uses no more than A level maths and IT IS CERTAINLY NOT A TRADING SYSTEM PER SE. More so the implication was that I was selling some guaranteed winning system that you see being hocked around these days – I am not. No one can guarantee you anything let alone to win in the markets!
The fact that I am a winning trader (Please see my record @ mathamarkets.com) and I have created mathemarkets are two entirely separate issues. They have very little to do with each other. Mathemarkets is like a state of the art tennis racquet. It will improve your play no matter who you are but it will not magically transform you into a winning trader. However use a wooden racquet and chances are you’ll be losing a lot more no matter who you are.
So perhaps prop shop types should quit their shops, save themselves a lot of money and join Peliacan trading, social network trading is now the way to connect with fellow traders not Prop shops, they are simply out dated.
This book part 1 of a three-book series is a beginner’s guide to mathemarkets. Parts 2 and 3 will contain more advanced concepts.
Part 1 will be divided into four sections. First I will introduce the general concept on mathemarkets, why it is necessary, what it is and how you apply it. Secondly, I will explain which of the few TA indicators that are math legitimate and why you should use them. Then I shall explain how to create and apply basic charts and indicators using maths or mathemarkets. This is the core of the book and as such will also deal with what software to use to produce(draw) mathemarkets charts. Lastly, I will touch on further mathemarkets concepts which are contained in parts 2 and 3.
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