It was an interesting part to read about some hidden forces that drive the market. Here is the quote directly from the author of ‘The Wave of Nature Theory’!
We often fail to appreciate the simple fact that all living things, including the financial markets, vibrate in cycles determined by wave of nature. Going against the “tides” often proves to be disastrous. Again, I am not referring to technical analysis that tracks and analyses historical performances (another effect), but rather the underlying forces (the cause) that influence each and every event on Earth. That is why I call this study and theory the “Wave of Nature”, which is the foundation of my financial predictions.
When I first started trading I read every book I could get my hands on and scoured forum after forum to find the “Holy Grail”, and to gain a better understanding of market fundamentals. In that I found what I believe is a great deal of misattribution.
Please don’t think I am contradicting any “theories” of Sharma, or any other non-traditionalist. That being said, the existence of “natural forces” and super secret market driving factors should probably not be factored into any practical trading plan. Even if you can show an outstanding track record. The market moves in response to the current price, current economic conditions, major recent and upcoming news events, political changes, etc.
The psychology of traders is what drives the price. Humans like to see patterns and it is easy for us to fall into the trap of misattributing a market move to some “magic formula” or “nature force” than to realize that any major move is a combination of the important factors in the economy or, more accurately, how other traders perceive those factors.
Again, not necessarily disagreeing with any theories of Sharma and his peers as I’ve not done enough research. I just don’t see any practicality in them. Anyone using a non-traditional trading system and doing so successfully?